D'Oench Doctrine

Definition of "D'Oench Doctrine"
  1. A rule in banking law that disallows a party such as a borrower or guarantor to invoke an undocumented accord with a collapsed bank in opposition to undertakings by the federal insuring entity or its proxies to retrieve on a promissory note like a loan
How to use "D'Oench Doctrine" in a sentence
  1. The court relied on the D'Oench Doctrine to dismiss the borrower's claim of an unrecorded agreement.
  2. Because an unrecorded agreement with the failed bank cannot be proved, the D'Oench Doctrine was applied.
  3. Under the D'Oench Doctrine, the guarantor's claim against the collection on the promissory note was denied.

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