Opinion ID: 2074942
Heading Depth: 1
Heading Rank: 15

Heading: imputation to fnb

Text: Regarding Gottsch's contention that knowledge of the Bank of Stapleton was imputed to FNB, the question is: Did the correspondent bank relationship, under the circumstances, supply a legal relationship through which the Stapleton bank's knowledge was imputed to FNB? We begin by noting that [a]n agency is a fiduciary relationship, resulting from one person's manifested consent that another may act on behalf and subject to the control of the person manifesting such consent, and, further, resulting from another's consent to so act. Dunn v. Hemberger, 230 Neb. 171, 180, 430 N.W.2d 516, 522 (1988); Oddo v. Speedway Scaffold Co., 233 Neb. 1, 443 N.W.2d 596 (1989). Whether an agency exists depends on the facts underlying the relationship of the parties irrespective of the words or terminology used by the parties to characterize or describe their relationship. See Ginn v. Lamp, 234 Neb. 198, 450 N.W.2d 388 (1990). `The distinguishing features of agency are its representative character and its derivative authority....' Anderson v. Valley Feed Yards, Inc., 175 Neb. 719, 722-23, 123 N.W.2d 839, 842 (1963); Valentine Oil Co. v. Powers, 157 Neb. 87, 59 N.W.2d 160 (1953). In Valentine Oil Co. v. Powers, supra at 91, 59 N.W.2d at 163, this court described an agent as `a person authorized by another to act on his account and under his control.' An agent has also been defined as `one who acts for or in the place of another by authority from him; one who undertakes to transact some business or manage some affairs for another by authority and on account of the latter, and to render an account of it....' Watkins v. Waits, 148 Neb. 543, 551, 28 N.W.2d 206, 210 (1947). When FNB became a participation lender to Phyllis Churchill, FNB decided to extend credit to Phyllis Churchill on the basis of FNB's judgment and asserted its control over the overline loan to Churchill. Also, FNB set the $50,000 limit and the interest rate on the overline loan. However, after becoming a participation lender, FNB delegated to the Bank of Stapleton much of FNB's authority to act on Phyllis Churchill's overline account. The Bank of Stapleton carried out the day-to-day paperwork for the Churchill overline loan, including preparation of financial statements, and had nearly all the personal and direct contact with Phyllis Churchill. More importantly, the Bank of Stapleton renewed Phyllis Churchill's overline loans without receiving FNB's prior permission for such renewals so long as a renewal loan was within the $50,000 limit set by FNB. Furthermore, FNB used the Bank of Stapleton as a source of information about FNB's overline customers, including Phyllis Churchill. For example, when asked whether FNB used a correspondent bank, such as the Bank of Stapleton, to obtain information regarding FNB's customers and overline accounts, including information about litigation involving a customer, Ostrand responded that [u]nder the logistics, we have to. We couldn't keep up with all the filings.... I don't know of any correspondent or city regional bank that has a department that just follows filings. You have to rely upon your correspondent because they are your eyes and ears. From the foregoing, it is clear that FNB actually delegated overline loan authority to the Bank of Stapleton and used the Stapleton bank in managing Phyllis Churchill's overline account. Thus, FNB expected the Bank of Stapleton to do more than simply handle paperwork on the overline loan. Strangely enough, FNB expressed that it would not become a participation lender with the Bank of Stapleton on the Phyllis Churchill loan unless an experienced manager was hired for the day-to-day operations of running of the bank ... because [FNB] wanted a chief executive officer that had banking experience. As the result of FNB's condition for its participation, the Bank of Stapleton hired Keslar as a bank officer meeting the qualifications expressed by FNB. Consequently, from our de novo review of the record, and contrary to the district court's finding, we conclude that an agency relationship actually existed between FNB and the Bank of Stapleton concerning the credit transactions with Phyllis Churchill.