Opinion ID: 593291
Heading Depth: 3
Heading Rank: 2

Heading: Tacit Consent

Text: 17 Santa Barbara next argues that Union tacitly consented to International's 1977 assumption of the obligation on the note, and that such consent, when taken together with the cancellation of the note through International's alleged payment, discharged its obligation. We disagree. 18 We have previously recognized that, under Puerto Rico law, a lender's tacit consent to a third party's assumption of liability on a note and acceptance of payment combine to cancel the note and preclude the FDIC from later recovering thereon. See Federal Deposit Ins. Corp. v. Bracero & Rivera, Inc., 895 F.2d 824, 826-28 (1st Cir.1990). However, the situation in Bracero & Rivera bears little resemblance to the facts in the case before us. 19 Bracero & Rivera also involved a facially valid note, payable to bearer on demand, found in the files of a failed bank. However, prior to failure, the bank had accepted payment from a third party on the debt. 5 Additionally, the bank issued a credit voucher in favor of the defendant which contained the following notation: cancellation of [defendant's] loan 25-85-70-9. Notice of this cancellation was in the FDIC's possession at all relevant times. See generally id. at 825-29. 20 The district court in Bracero & Rivera entered judgment in favor of defendant. In so doing, the court ruled that, under Puerto Rico law, the lender's tacit consent to the third party's assumption of liability on the note and acceptance of payment discharged the note. Id. at 826. We affirmed, noting that the FDIC's notice of cancellation would preclude it from recovering as a holder in due course. Id. at 829. 21 In the case at bar, however, there is no record evidence, such as the cancellation voucher in Bracero & Rivera, indicating that Union, at the time that it acquired the note as security for its judgment against World, tacitly consented to relieve Santa Barbara of its obligation on the note and look solely to International for payment. Despite Santa Barbara's argument to the contrary, we simply do not see how Union's acceptance of the note with knowledge of the 1977 deed agreement between International and Santa Barbara, if Union had such knowledge, 6 implies the existence of an intent on Union's part to tacitly consent to hold International liable on the note. Furthermore, even if Union did so intend, the record is devoid of evidence indicating that the FDIC had notice of this intent. Thus, the doctrine of tacit consent, if applicable to this case, would not deprive the FDIC of holder in due course status.