ÿWPC† 1#†¾U>D %‚ 0(ˆ4°Ä BÓð 0Jð 0T: 0^Ž 0hìwT 0rj 0DÜ 0|  0†œÆ" 0è 1ux AOí 0D< U,€ 0d¬ U, 0@< U 6| D3² B)å D/ DC= B€ AM U*ê e   v~5vÓ³˜IBM Laser Printer 4019IBM4019ÈÈ,,,,ÈÈ0 ØP /jÇ=àFgÐ<èÀ( 9Z &Courier RegularX($¡¡1# x°°3|xX d2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô  2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô(3¯$¢¢Ý ƒ!ÝÝ  Ý2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  ÔƒLevel 1Level 2Level 3Level 4Level 52^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)$(Cþÿ<< Cÿÿ($$””ò òÚ  Ú1Ú  Úó ó< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco("ÿÿ$££Ò  ÒÒ  Ò< Œ 9p`(Courier New'ÿÿdxd% Line 7 d**'÷ÿ dxd''''7Border 1ddüÿP Pd$)Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€%ÔÝ  ÝÝ ƒ"ÝÝ  Ýò òÔ€%ÔÓ  ÓÔ€,ÔÔ eee ÔFILEDÔ€,XÔó óÌò òÔ€,¼ÔÔ"USú ú, úÔÔ ƒ- ÔÔ!  Ôó óÔ€,XÔÌÌò òCecil€Crowson,€Jr.Ô€%Ôó óÔ  ÔÌÔ€%ÂÔÔ€,ÔÔ eee Ôò òAppellate€Court€Clerkó óÔ  ÔÔ€%ÔÔ€%XÔPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA: T Monaco ÒÒ  BA: T Monaco ÒÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€##X„d&ÓÑ#€##Xd#ÑÔ€%ÔÝ  ÝÓ ` Ü‚Xœ ’X ÓÑ\R AØ'\ÑÑ7€Î$XdÈdÈ7ÑÑ  ÑPEOPLE'S€BANK€OF€ELK€VALLEY,à à)Ìà àà à)ÌÓ#` Ü‚Xœôx‘X#Óà àPlaintiff/Appellant,à à)à àAppeal€No.Ìà àà à)à à01„A„01„9506„CV„00260Ìv.à àà à)Ìà àà à)à àLincoln€CircuitÌÙ€ÙßL€+.);+'h|NÐâ `€€LßAMERICAN€BANKERS€FINANCIALà à)à àNo.€128„88ÌSERVICES,€INC.,€et€al,à à)Ìà àà à)Ìà àDefendants/Appellees.à à)ÌÌÌÌÓ  ÓÔ€%¼ÔCOURT€OF€APPEALS€OF€TENNESSEEÌÌMIDDLE€SECTION€AT€NASHVILLEÌÌÌAPPEAL€FROM€THE€COURT€FOR€LINCOLN€COUNTYÌÌAT€FAYETTEVILLE,€TENNESSEEÌÌÌTHE€HONORABLE€LEE€RUSSELLÌÓ ` Ü‚XœÈ“X ÓÌÌÓ  ÓÌÌÔ€%XÔSTEPHEN€G.€ANDERSONÌBaker,€Donelson,€BearmanÌ€&€CaldwellÌ900€Gay€Street,€S.W.,€Suite€2200ÌP.€O.€Box€1792ÌKnoxville,€Tennessee€€37901Ìà àATTORNEY€FOR€PLAINTIFF/APPELLANTÌÌÌÌWalter€W.€BussartÌBarbara€G.€MedleyÌBussart€&€MedleyÌ101€West€Commerce,€Suite€306ÌLewisburg,€Tennessee€€37091Ìà àATTORNEYS€FOR€DEFENDANTS/APPELLEESÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÓ  ÓREVERSED€AND€REMANDEDÌÌÌÌÌÓ  ÓÔ€%¼ÔSAMUEL€L.€LEWIS,€JUDGEÌÓ  ÓÓÓòòÔ€%°ÔOÔ€%¼Ô€P€I€N€I€O€NÌÓ  ÓÓ#` Ü` ä œÈ“X#ÓóóÔ€%XÔà àPlaintiff,€People's€Bank€of€Elk€Valley€("People's€Bank"),Ïappeals€from€the€trial€court's€order€granting€summary€judgment€to€Ïdefendant,€American€Banker's€Financial€Services,€Inc.€("American")Ïand€dismissing€People's€Bank's€complaint.ÌÌà àThe€complaint€focused€on€American's€failure€to€insure€loansÏthat€American€had€allegedly€agreed€to€insure.€€Initially,€People'sÏBank€sought€to€recover€the€entire€amount€of€all€the€loans€andÏconsequential€damages€regardless€of€whether€the€underlying€loansÏhad€gone€into€default.€€As€the€case€progressed,€however,€People'sÏBank€norrowed€its€focus€to€those€loans€that€had€actually€gone€intoÏdefault€and€the€portions€of€those€loans€(principal€and€interest)Ïthat€American€had€allegedly€agreed€to€insure.ÌÌà àFollowing€discovery,€both€parties€moved€for€summaryÏjudgment.€€In€February€1992,€the€trial€court€denied€People's€BankÏmotion€for€partial€summary€judgment,€granted€American's€motion€forÍsummary€judgment,€and€dismissed€People's€Bank's€complaint.€ÏPeople's€Bank€appealed€the€trial€court's€judgment€as€to€thirty„eight€of€the€original€fifty„two€loans.ÌÌà àThe€facts€out€of€which€this€case€arose€are€as€follows.€€InÏthe€summer€of€1985,€Manufacturer's€Mortgage€Underwriters,€Inc.Ï("MMU")€approached€the€president€of€People's€Bank€.€€MMU€proposedÏan€arrangement€in€which€People's€Bank€would€fund€loans€secured€byÏmanufactured€homes.€€If€People's€Bank€made€the€loans€under€certainÏconditions,€they€could€package€the€loans€and€resell€them€on€theÏsecondary€market.€€MMU€represented€to€People's€Bank€that€the€riskÏwas€small€because€People's€Bank€could€obtain€credit€insurance€andÏwould€only€hold€the€loans€for€a€brief€time.ÌÌÌÌÌà àAs€part€of€this€arrangement,€American€issued€a€manufacturedÏhome€credit€insurance€policy€in€August€1985€naming€People's€BankÏas€the€insured.€€The€section€of€the€insurance€policy€entitledÏ"Insuring€Agreement"€provided:ÌÓÓà8 àWe€agree€to€provide€insurance€coverage€for€lossesÏcaused€by€the€ò òdefault€ó óof€a€borrower€whose€ò òloan€ó óisÏsecured€by€a€ò òmanufactured€home€ó ówhich€occurÏduring€the€Commitment€Period€shown€on€theÏCommitment€of€Insurance.€€Your€coverage€is€subjectÏto€all€policy€terms€and€conditions.Ìà8 àà0 àÌÌÌÓÓà àThe€relevant€portions€of€the€"General€Policy€Conditions"Ïwere€as€follows:ÌÓ#` ` Œ ä ҜȓX#ÓÓÓà à1.à8 àòòREQUIREMENT€FOR€INSURANCEóóÌà8 àà8 àò òWe€ó ó[American]€agree€to€issue€a€Commitment€forÏInsurance€for€each€eligible€ò òloan€ó óadvanced€by€ò òYouÏó óafter€the€effective€date€of€the€policy.€€ò òYou€ó óagreeÏto€submit€a€Request€for€Commitment€of€Insurance€onÏforms€furnished€by€ò òUs€ó óon€all€eligible€ò òloansÏó óadvanced€by€ò òYou€ó óafter€the€effective€date€of€thisÏpolicy.€€ò òYour€ó órequest€must€be€made€by€the€10th€ofÏthe€month€following€the€purchase€date€of€the€ò òloan.€ó óÏò òWe€ó óagree€to€provide€ò òYou€ó ówith€the€Commitment€ofÏInsurance€within€30€days€after€receipt€of€ò òYourÏó órequest.ÌÌÓ  Ó*€*€*ÌÓ  ÓÌà à5.à8 àòòMISREPRESENTATION€AND€FRAUDóóÌà8 àà8 àò òWe€ó ó[American]€have€the€option€to€cancel€anÏindividual€Commitment€of€Insurance€if€one€of€ò òYourÏó óemployees€or€appointed€agents€has€concealed€orÏmaterially€misrepresented€any€of€the€information€ò òWeÏó órequire€on€a€ò òloan€ó óor€ò òborrower.ó óÌÌÓ  Ó*€*€*ÌÓ  ÓÌà à8.à8 àòòINFORMATION€AND€REPORTSóóÌà8 àà8 àOn€any€ò òloan€ó óto€be€insured€ò òYou€ó ómust€supply€ò òUs€ó ówithÏthe€information€and€documentation€ò òWe€ó órequire€by€theÏ10th€of€the€month€following€the€date€of€the€ò òloan.ó óÌÌÓ  Ó*€*€*€ÌÓ  ÓÌà8 àà8 àIf€at€any€time€ò òWe€ó órequest€additional€informationÏò òYou€ó ówill€promptly€provide€ò òUs€ó ówith€the€information.ÌÌÓ  Ó*€*€*ÌÌÓ  Óà à18.à àòòCANCELLATIONóóÌà8 àà8 àò òYou€ó ó[People's€Bank]€may€cancel€this€policy€at€anyÏtime€by€returning€it€to€ò òUs.ó óÌÌà8 àà8 àò òWe€ó ó[American]€reserve€the€right€to€cancel€thisÏpolicy€at€any€time€by€mailing€a€10€day€writtenÏnotice€to€ò òYou€ó óat€ò òYour€ó óaddress€last€known€to€ò òOurÏó óauthorized€agent€with€postage€fully€pre„paid.ÌÌÌÌÓ ` ` ä ҜȓX ÓÓÓà àThe€policy€provided€that€People's€Bank€would€pay€a€singleÏpremium€to€American€which€would€cover€the€life€of€the€loan.€ÏShortly€after€American€issued€the€policy,€a€representative€ofÏAmerican€met€with€two€officers€from€People's€Bank€to€discuss€theÏpolicy.€The€representatives€from€People's€Bank€disclosed€toÏAmerican€that€People's€Bank€did€not€have€experience€in€mobile€homeÏfinancing€or€in€selling€loans€on€the€secondary€market.€€ÌÌà àPeople's€Bank€made€fifty„two€loans,€which€were€secured€byÏmanufactured€homes,€between€30€August€1985,€the€date€the€policyÏwas€issued,€and€January€1986.€€The€loans€had€an€aggregate€faceÏvalue€of€approximately€one€and€one„half€million€dollars.€€Ìà àÌà àAmerican€admitted€receiving€requests€for€commitments€ofÏinsurance€on€forty„eight€loans.€€It€issued€commitments€forÏinsurance€on€ten€of€the€loans€and€refused€to€insure€the€remainder.ÌÌà àPeople's€Bank€divided€the€forty„eight€loans€into€fourÏcategories€based€on€American's€disposition€of€the€requests€forÏcommitment€of€insurance.€€First,€there€were€eighteen€loans€thatÏAmerican€refused€to€insure€because€the€requests€for€commitment€ofÏinsurance€were€allegedly€made€after€the€time€period€provided€inÏthe€policy.€€Second,€there€were€seven€of€the€preceding€eighteenÏloans€that€American€refused€to€insure€because€it€claimed€thatÏPeople's€Bank€had€made€misrepresentations€regarding€the€employmentÏor€deaths€of€the€loan€applicants.€€Third,€American€refused€toÍinsure€twenty€loans€because€of€the€alleged€misrepresentations€madeÏin€the€other€loans.€€Fourth,€there€were€ten€loans€which€AmericanÏinsured,€but€for€which€it€cancelled€payment.€€The€parties€haveÏresolved€the€issues€regarding€this€last€group€of€loans.ÌÌà àAmerican€refused€to€issue€commitments€for€insurance€on€theÏfirst€eighteen€loans€because€they€did€not€promptly€receive€theÏrequests€for€commitment€of€insurance.€€American€alleged€that€theyÏreceived€the€requests€for€commitment€of€insurance€on€23€DecemberÏ1985€and€that€People's€Bank€made€the€loans€in€September,€October,Ïand€November€1985.€€American€insisted€that€the€policy€requiredÏthat€they€be€in€receipt€of€the€requests€by€the€10th€of€the€monthÏfollowing€the€month€in€which€People's€Bank€made€the€loans.€ÏAlthough€the€policy€obligated€American€to€act€upon€the€requestsÏfor€commitment€of€insurance€within€thirty€days,€American€did€notÏadvise€People's€Bank€of€its€refusal€to€insure€these€loans€until€19ÏJune€1986,€some€five€months€after€People's€Bank€submitted€theÏrequests€for€commitment€of€insurance.€€American's€letter€conveyingÏtheir€refusals€stated€in€pertinent€part:ÌÓÓà8 àThankyou€[sic]€for€forwarding€me€a€copy€of€theÏagreement€between€Manufactured€MortgageÏUnderwriters€and€The€Peoples[sic]€Bank.ÌÌà8 àIn€addition€to€the€lists€of€loans€furnished€you€inÏmy€letter€of€May€30,€1986,€I€am€enclosing€a€list€ofÏloans€that€were€received€at€our€office€on€DecemberÏ23,€1985.€€This€list€totals€18€loans.ÌÌà8 àUnfortunately,€we€are€unable€to€insure€these€loansÏbecause€they€do€not€comply€with€Paragraph€1€underÏGeneral€Policy€Conditions€of€the€Manufactured€HomeÏCredit€Insurance€Policy.€€All€of€these€loans€hadÍeffective€dates€of€September€and€October,€1985€andÏtherefore€should€have€been€submitted€to€AmericanÏBankers€by€the€10th€of€the€following€month.ÌÌÌÌÓÓà àAmerican€insisted€that€it€did€not€have€an€obligation€toÏissue€commitments€for€insurance€as€to€the€seven€loans€in€theÏsecond€group€because€of€alleged€misrepresentations€concerning€theÏborrowers'€debts€or€places€of€employment.€€American€found€theseÏmisrepresentations€through€phone€audits,€credit€reports,€andÏinvestigations€conducted€by€Equifax.€€American€did€not€allege€thatÏthe€misrepresentations€were€attributable€to€People's€Bank.ÌÌà àAmerican€refused€to€issue€commitments€for€insurance€as€toÏthe€twenty€loans€in€the€third€group€because€of€the€allegedÏmisrepresentations€in€the€other€loans.€€American€also€insistedÏthat€People's€Bank€did€not€adequately€explain€discrepancies€in€theÏapplications.€€As€a€result,€American€suspended€its€obligation€toÏinsure€the€loans.€€American€explained€its€action€in€a€letter€datedÏ30€May€1986,€four€months€after€People's€Bank€submitted€theÏrequests€for€commitment€of€insurance€to€American€and€three€monthsÏafter€American€would€have€ordinarily€issued€the€commitments€forÏinsurance.€€That€letter€stated€in€pertinent€part:ÌÓÓà8 àThis€letter€confirms€our€telephone€conversation€onÏFriday,€May€23€in€which€I€advised€you€that€we€hadÏnot€yet€received€the€delinquency€report€fromÏManufactured€Mortgage€Underwriters€for€the€month€ofÏApril.€€Also,€I€advised€you€that€in€recent€auditsÏwe€had€discovered€discrepancies€on€employmentÏrelative€to€the€borrower.€€As€information,€theÏamount€that€is€past€due€for€May€is€$502.87.€ÌÌà8 àAttached€is€a€list€of€loans€that€were€returned€toÏManufactured€Mortgage€Underwriters€on€May€23,€1986.€ÏAs€I€indicated€on€the€phone,€we€would€not€beÏunderwriting€these€loans€until€audit€discrepanciesÏwere€cleared€up€and€until€we€were€confident€allÏconditions€of€the€above€policy€were€complied€with.ÌÌà8 àòòPlease€consider€the€above€policy€suspended€forÏcoverage€of€any€additional€loans€not€shown€on€theÏattached€list€of€inforce€loansóóòò.€€óóThe€suspension€isÏeffective€immediately€and€is€in€effect€untilÏfurther€notice.€€ÌÌÌÌÓÓà àOn€18€July€1986,€American€notified€People's€Bank€that€itÏhad€cancelled€the€policy.€€People's€Bank€insisted€that€it€sufferedÏlosses€on€the€loans€because€of€borrowers'€defaults€and€because€ofÏAmerican's€refusal€to€insure€the€loans.ÌÌà àPeople's€Bank€presented€four€issues€on€appeal.€€They€are€asÏfollows:€ÌÓ ` ` ä ‚îœÈ“X ÓÓÓà8 àà àI.à àDid€the€Manufactured€Home€CreditÏInsurance€Policy€("the€Policy")€issued€by€AmericanÏBankers€Insurance€Company€of€Florida€("ABIC")Ïcreate€an€enforceable€obligation€on€the€part€ofÏABIC€to€insure€all€"eligible"€loans€made€by€theÏPeople's€Bank€of€Elk€Valley€("People's€Bank")duringÏthe€term€of€the€Policy€or€until€it€was€terminatedÏby€ABIC?Ìà8 àà àII.à àDid€ABIC€breach€its€obligation€underÏthe€Policy€when€it€refused€to€insure€eligible€loansÏfor€no€reason€other€than€unexplained€discrepanciesÏin€òòotheróó€loans?Ìà8 àà àIII.à àDid€ABIC€breach€its€obligation€underÏthe€Policy€by€refusing€to€insure€loans€solelyÏbecause€they€were€not€submitted€for€insuranceÏwithin€the€time€period€specified€in€the€Policy?Ìà8 àà àIV.à àDid€ABIC€breach€its€obligation€underÏthe€Policy€by€refusing€to€insure€any€loans€in€whichÏa€borrower€misrepresented€his€employment€history€orÏdebts?ÌÌÌÌÓÓà àIt€is€the€obligation€of€courts€"to€enforce€contractsÏaccording€to€their€plain€terms."€€ò òòòBob€Pearsall€Motors,€Inc.€v.ÏRegal€Chrysler„Plymouth,€Inc.ó óóó,€521€S.W.2d€578,€580€(Tenn.Ï1975).€€Courts€are€to€interpret€insurance€policies,€like€otherÏcontracts,€by€giving€words€their€common€and€ordinary€meaning.€Ïò òòòTata€v.€Nicholsó óóó,€848€S.W.2d€649,€650€(Tenn.€1993).€€"[T]heÏparamount€rule€of€construction€in€insurance€law€is€to€ascertainÏthe€intent€of€the€parties."€€ò òòòBlue€Diamond€Coal€v.€Holland„America€Ins.€Co.ó óóó,€671€S.W.2d€829,€833€(Tenn.€1984).€€If€languageÏin€a€policy€is€found€to€be€ambiguous,€i.e.,€"susceptible€of€moreÏthan€one€reasonable€interpretation,"€it€will€be€"construed€againstÏthe€insurance€company€and€in€favor€of€the€insured."€€ò òòòTataó óóó,€848ÏS.W.2d€at€650.€ÌÌà àWe€are€reviewing€the€dismissal€of€People's€Bank€complaintÏon€motion€for€summary€judgment.€€ÌÓÓà8 àIn€determining€whether€or€not€a€genuine€issue€ofÏmaterial€fact€exists€for€purposes€of€summaryÏjudgment,€courts€...€must€take€the€strongestÏlegitimate€view€of€the€evidence€in€favor€of€theÏnonmoving€party,€allow€all€reasonable€inferences€inÏfavor€of€that€party,€and€discard€all€countervailingÏevidence.€€Then,€if€there€is€a€dispute€as€to€anyÏmaterial€fact€or€any€doubt€as€to€the€conclusions€toÏbe€drawn€from€that€fact,€the€motion€must€be€denied.€€ò òòòÌByrd€v.€Hall,ó óóó€847€S.W.2d€208,€210€(Tenn.€1993)€(citationsÏomitted).€€Ìà8 àIt€has€been€repeatedly€stated€by€this€Court€thatÏthe€purpose€of€a€summary€judgment€preceding€is€notÏthe€finding€of€facts,€the€resolution€of€disputedÏfactual€issues,€or€the€determination€of€conflictingÏinferences€reasonably€to€be€drawn€from€the€facts.€ÏThe€purpose€is€to€resolve€controlling€issues€ofÏlaw,€and€that€alone.€€ò òòòÌÌBellamy€v.€Federal€Express€Corp.ó óóó,€749€S.W.2d€31,€33€(Tenn.Ï1988).€€ÌÓÓSummary€judgment€is€appropriate€when,€after€construing€all€of€theÏevidence€most€favorably€to€the€nonmoving€party,€there€are€noÏgenuine€issues€of€material€fact€and€the€law€entitles€the€movant€toÏa€judgment.€€ò òòòByrdó óóó,€847€S.W.2d€at€214.ÌÌà àWith€these€rules€in€mind€we€discuss€the€issues€presented€byÏthe€plaintiff.€€People's€Bank€has€stated€that€the€central€issue€onÏappeal€is€whether€American's€"refusal€to€issue€certificates€ofÏinsurance€on€thirty„eight€loans€was€a€breach€of€the€creditÏinsurance€policy€it€issued€to€People's€Bank."€€The€question€weÏmust€answer€is€when€did€the€obligation€of€American€to€insureÏattach€to€a€specific€loan.ÌÌà àPeople's€Bank€insisted€that€American's€obligation€to€insureÏa€loan€attached,€if€at€all,€at€the€time€People's€Bank€made€theÏloan.€€That€is,€if€the€loan€met€the€eligibility€requirements€atÏthat€time,€the€policy€obligated€American€to€insure€the€loan€and€toÏissue€a€commitment€for€insurance.€€They€admitted€that€the€policyÏdid€not€obligate€American€to€insure€a€loan€if€the€loan€did€notÏmeet€the€eligibility€requirements.ÌÌà àPeople's€Bank€further€argued€that€"any€factual€review€ofÏloan€documentation€undertaken€by€the€insurance€company€after€theÏloan€is€advanced€is€done€not€to€decide€whether€the€company€wantsÍto€insure€the€loan€but€to€confirm€whether€the€loan,€when€made,€metÏthe€eligibility€requirements€in€the€Policy."€€Stated€another€way,ÏPeople's€Bank€insisted€that€once€they€made€the€loan,€American€noÏlonger€had€the€discretion€to€decide€whether€it€wanted€to€insureÏthe€loan.€€If€the€loan€met€the€objective€criteria€the€parties€hadÏagreed€to,€€it€was€an€"eligible"€loan€and€the€policy€entitledÏPeople's€Bank€to€insurance€regardless€of€whether€American€wasÏ"comfortable"€with€it.ÌÌà àThe€trial€court,€however,€found€that€there€was€noÏobligation€to€insure€any€of€the€loans€until€after€American€hadÏmade€a€discretionary€decision€that€it€wanted€to€insure€a€specificÏloan€and€had€issued€a€commitment€for€insurance€as€to€that€loan.€ÏThe€trial€court€held€that€refusing€to€insure€the€thirty„eightÏloans€was€defensible€because€American€had€no€obligation€to€insureÏthe€loans€unless€and€until€it€was€comfortable€with€the€paperworkÏand€it€had€actually€issued€commitments€for€insurance.ÌÌà àFrom€our€review€of€this€record,€we€are€of€the€opinion€thatÏPeople's€Bank€has€shown€that€there€is€a€genuine€issue€of€materialÏfact€as€to€whether€American€agreed€to€insure€all€eligible€loansÏand€as€to€whether€the€eligibility€of€a€loan€was€a€fact€thatÏPeople's€Bank€could€determine€prior€to€making€the€loan€byÏreferring€to€the€objective€criteria€set€forth€in€the€policy.€ÏThere€is€also€a€material€question€as€to€whether€the€thirty„eightÏloans€issued€by€People's€Bank€met€the€eligibility€criteria€at€theÍtime€People's€Bank€made€the€loans.ÌÌà àTherefore,€it€results€that€the€summary€judgment€granted€toÏAmerican€is€reversed,€and€the€cause€is€remanded€to€the€trial€courtÏfor€any€further€necessary€proceedings.€€Costs€on€appeal€areÏassessed€to€defendant/appellee,€American€Bankers€FinancialÏServices,€Inc.Ì€ÌÓÓà àà àà àà à__________________________________Ìà àà àà àà àSAMUEL€L.€LEWIS,€JUDGEÌÌÌÌCONCUR:ÌÌÌÌ_________________________________ÌHENRY€F.€TODD,€P.J.,€M.S.ÌÌÌÌ_________________________________ÌWILLIAM€C.€KOCH,€JR.,€J.