Louis Scaglione; Emilie Antelline, Plaintiffs-appellants, v. United States of America, Defendant-appellee, 967 F.2d 590 (9th Cir. 1992)Annotate this Case
Before REINHARDT and KOZINSKI, Circuit Judges, and EZRA,*
A. Plaintiffs allege that an employee of the Farmers Home Administration orally agreed to two limitations on the May 5, 1978, loans to the Salinas brothers: (1) Plaintiffs' deed of trust would be security for the loans for only one year; and (2) all crop proceeds received from the Salinas brothers would be used to reduce the balance owed on the loans. FmHA regulations provide for the application of loan proceeds and the holding of collateral. See 7 C.F.R. Parts 1951, 1965. The FmHA employee had no authority to bind the government to terms other than those contained in the regulations, deed of trust and promissory notes. See Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380, 384 (1947). The district court thus correctly rejected plaintiffs' contrary argument.
B. The deed of trust is not collateral for the five loans made subsequent to May 5, 1978--and the United States has disavowed any claim to the contrary. As these loans are not secured by the deed, there is no controversy to resolve concerning them.