ÿWPC) /# ¢UN­ %û 0(w@)4i}ÆŒ 0lR 0D¾ 0J 0TL 0^  0hþ 0rf 0|Ø 0†T 0Ú 1uj 0dß U>C AQ BÒ 0Dï 0@3 0Ds B)· D/à DC BR D3o AM¢ U*ï  ¸ v~ØvÓV˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z ‹6Times New Roman RegularX($¡¡ _U` a b c d£efgÓ€s ƒ‰#ÇRè3|xsƒLevel 1Level 2Level 3Level 4Level 5((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman!"#%Cþÿ<< Cÿÿ d(3¯$¢¢Ý ƒ!ÝÝ  Ý("ÿÿ$££Ò  ÒÒ  Ò($$””ò òÚ  Ú1Ú  Úó ó% Line 7 d'''÷ÿ dxd$$$$7Border 1ddüÿP Pd 'ÿÿdxd"&Cþÿ << Gÿÿ< Œ 9p`(Arial ýÝ ƒ!ÝÔ€ÔÝ  ÝÝ ƒ!"ÝÝ  ÝÔ€*ÔÔ€*ÔÓ  ÓÔ YYY ÔFILEDÔ€*XÔÌÌò òDecember€22,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€*ôÔAppellate€Court€Clerkó ó ®Ý ƒ!ÝÔ€ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝWe€do€note€that€the€Guaranty€agreement€further€provides€that€ð ð[t]he€right€of€recovery,Ïhowever,€against€the€undersigned€is€limited€to€òòTwo€Hundred€Thousand€and€no/100„„„„„„„„„„„„óóDollars€($òò200,000.00óó)€plus€interest€on€all€loans€and/or€advances€hereunder€and€all€expensesÏhereinbefore€mentioned;€.€.€.ðð€€ÌPtPtHHÚ(ÿáÿâùFG(üHHØ(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 ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva ÒÝ ƒ!ÝÔ . ÔÔ€ÔÝ  ÝÓ` Ü` p”XÓÑ\R AØ'\Ñò òÞ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEE,€WESTERN€SECTIONÌà@ àAT€JACKSONó óÌÌà@ à_______________________________________________________ÌÌà à)Ìò òDENNIS€CLAYTON€andó ó,à à)à àTipton€County€Circuit€CourtÌÙ€Ùò òßR€)+&A1-j|…S` Å `€€@ÿRßGARDEN€HOMES,€INC.ó óà à)à àNo.€4282Ìà à)Ì€€€€€Plaintiffs/Appellants.à à)Ìà à)ÌVS.à à)à àC.A.€No.€02A01„9701„CV„00019Ìà à)Ìò òUNION€SAVINGS€BANKó ó,à à)Ìà à)Ì€€€€€Defendant/Appellee.à à)Ìà à)Ì______________________________________________________________________________ÌÌFrom€the€Circuit€Court€of€Tipton€County€at€Covington.Ìò òHonorable€Joseph€H.€Walker,€Judge€ó óÌÌÌÌò òMichael€L.€Weinmanó ó,€TATUM€&€TATUM,€Henderson,€TennesseeÌAttorney€for€Plaintiffs/Appellants.ÌÌÌò òG.€Michael€Acreeó ó,€Covington,€TennesseeÌAttorney€for€Defendant/Appellee.ÌÌÌÌOPINION€FILED:ÌÌò òAFFIRMED€AND€REMANDEDó óÌÌÌà àò òFARMER,€J.ó óÌÌò òCRAWFORD,€P.J.,W.S.ó ó:€(Concurs)Ìò òLILLARD,€J.ó ó:€(Concurs)ÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÓ  ÓÓ` Ü` ˜XÓÓÓà àDennis€Clayton€and€Garden€Homes,€Inc.€(GHI)€appeal€from€the€trial€courtððs€grantÏof€summary€judgment€in€favor€of€Union€Savings€Bank€(Bank).ÌÌà àThe€complaint€filed€by€Clayton€and€GHI€alleges€that€GHI,€through€its€presidentÏDanny€Anderson,€entered€into€a€Construction€Loan€Agreement€on€August€10,€1989€to€borrowÏ$200,000€from€Bank€for€the€purpose€of€constructing€five€homes.€€That€sum€was€sufficient€toÏcomplete€construction€of€the€homes€except€that,€unknown€to€Clayton,€Anderson€had€divertedÏapproximately€$35,000€of€the€original€$200,000€for€his€own€personal€use.€€It€is€further€alleged€thatÏon€January€16,€1990,€GHI€entered€into€a€new€promissory€note€with€Bank€to€borrow€$50,000.€ÏThe€parties€executed€a€Construction€Loan€Agreement€for€the€construction€of€homes€on€lots€1Ïthrough€6€of€Tract€I€of€the€Garden€Hills€Subdivision€and€lots€17€and€18€of€Tract€II€of€the€GardenÏHills€Subdivision.€€Bank€failed€to€disperse€the€proceeds€of€the€second€note€according€to€the€termsÏof€the€loan€agreement€but€instead€dispersed€those€proceeds€to€pay€for€construction€of€the€initial€fiveÏhomes€which€were€to€be€financed€by€the€$200,000€loan.€€Clayton€alleges€that€a€document€entitledÏCross„Pledge€Agreement€which€purports€to€contain€his€signature€is€a€forgery.ÌÌà àIt€is€further€alleged€that€at€least€one€of€the€directors€of€the€Bank€and/or€members€ofÏtheir€families€provided€materials€and€services€to€GHI€for€the€construction€of€the€first€five€homes.€ÏSome€of€the€funds€which€were€diverted€from€the€$50,000€loan€were€used€to€pay€debts€owing€toÏthese€businesses€and€that€ð ðthis€self„dealing€by€the€Bank€through€its€board€of€directors€causedÏPlaintiff€to€lose€in€excess€of€several€thousand€dollars.ðð€€It€is€further€averred€that€the€Bank€conspiredÏwith€Danny€Anderson€to€defraud€Clayton€of€funds€borrowed€from€the€Bank€and€that€the€BankÏbreached€a€duty€owed€to€the€plaintiffs€by€negligently,€recklessly€and/or€knowingly€allowing€DannyÏAnderson€to€divert€funds€for€his€own€personal€use€and€gain.ÌÌà àBank€responded€by€a€motion€for€summary€judgment€supported€by€the€affidavit€ofÏBarnet€G.€Hall,€III,€president€of€Bank,€wherein€he€identifies€and€attaches€to€his€affidavit€copies€ofÏthe€Construction€Loan€Agreement€of€August€10,€1989,€the€Construction€Loan€Agreement€ofÏJanuary€16,€1990,€a€Cross„Pledge€Agreement€dated€January€16,€1990,€a€corporate€resolution€datedÏAugust€8,€1989€and€a€Guaranty€Agreement€dated€August€10,€1989€executed€by€Danny€AndersonÏand€Dennis€Clayton.€€Clayton€filed€his€affidavit€in€response€to€Bankððs€motion€for€summaryÏjudgment€wherein€he€reiterates€many€of€the€allegations€of€the€complaint.€€He€avers€that€the€actualÏcost€of€building€the€first€five€homes€was€$199,965.02,€slightly€below€the€$200,000€loan€proceeds;Ïthat€he€was€not€aware€that€Anderson€was€diverting€these€funds€to€the€point€there€would€not€beÏenough€left€from€the€loan€proceeds€to€complete€the€first€homes€until€he€was€informed€by€BankÏofficer€Jimmy€Trotter€in€mid€June€of€1990.€€Shortly€after€the€second€loan€agreement€was€enteredÏinto€on€January€16,€1990,€Clayton€was€informed€by€Bank€chairman€Cole€that€the€procedure€to€beÏused€in€disbursing€the€proceedings€of€the€second€loan€were€going€to€be€changed€in€that€the€BankÏwould€take€over€writing€all€the€checks€drawn€on€the€Garden€Homes€line€of€credit.€€No€explanationÏwas€given€to€Clayton€at€that€time€as€to€why€this€change€was€being€instituted.€€Bank,€withoutÏClaytonððs€knowledge€or€consent,€disbursed€approximately€$32,000€from€the€proceeds€of€theÏsecond€loan€to€pay€for€costs€incurred€in€constructing€the€first€five€homes.ÌÌà àPlaintiffs€present€the€following€issues€for€our€consideration:ÌÌÓÓà8 àà àI.€€Whether€the€trial€court€erred€in€granting€appelleeððs€motionÏfor€summary€judgment€on€the€breach€of€contract€claim€because€anÏissue€of€disputed€fact€exists€as€to€whether€the€Bank€was€actingÏoutside€of€its€authority€in€the€manner€it€disbursed€the€proceeds€of€theÏconstruction€loan€agreements.ÌÌà8 àà àII.€€Whether€the€trial€court€erred€in€granting€AppelleeððsÏmotion€for€summary€judgment€on€the€breach€of€fiduciary€duty,Ïconspiracy€to€defraud€and€self„dealing€claims€because€AppelleeÏfailed€to€meet€its€initial€burden€of€demonstrating€that€no€disputedÏissue€of€material€fact€exists€on€these€claims.ÌÌÌÌÓÓà àSummary€judgment€is€proper€when€there€are€no€genuine€issues€of€material€fact€andÏthe€moving€party€is€entitled€to€judgment€as€a€matter€of€law.€€Rule€56€T.R.C.P.,€òòò òByrd€v.€Hallóóó ó,Ï847€S.W.2d€208,€210€(Tenn.€1993).€€In€considering€whether€a€motion€for€summary€judgment€wasÏproperly€granted,€we€must€view€the€evidence€in€the€light€most€favorable€to€the€nonmoving€partyÏand€draw€all€reasonable€inferences€in€the€nonmoving€partyððs€favor.€€òòò òByrdóóó ó,€at€210„11.€€If€a€contractÏis€plain€and€unambiguous,€the€meaning€thereof€is€a€question€of€law€and€it€is€the€courtððs€function€toÏinterpret€the€contract€as€written€according€to€its€plain€terms.€€òòò òPetty€v.€Sloanóóó ó,€277€S.W.2d€355Ï(Tenn.€1955);€òòò òMalone€&€Hyde€Food€Servs.€v.€Parsonóóó ó,€642€S.W.2d€157,€159€(Tenn.€App.Ï1982).ÌÌà àBank€contends€that,€when€the€documents€are€read€together,€it€is€authorized€to€applyÏthe€proceeds€of€one€loan€to€another.€€Bank€relies€on€the€following€language€from€the€1990€loanÏconstruction€agreement:ÌÌÓÓà8 àNo€advance€shall€be€due€unless,€in€the€reasonable€judgment€ofÏBank,€all€work€which€is€usually€done€at€the€stage€of€constructionÏwhen€the€advance€is€requested€is€done€in€a€good€and€workmanlikeÏmanner,€and€all€materials€usually€furnished€and€installed€at€suchÏtimes€are€furnished€and€installed,€but€Bank€may€advance€parts€or€theÏwhole€of€any€advance€before€it€becomes€due€if€Bank€believes€it€isÏadvisable€to€do€so,€and€all€such€advances€or€payments€shall€beÏdeemed€to€have€been€made€in€pursuance€to€this€Agreement€and€notÏin€modification€thereof.ÌÌÌÌÓÓWe€are€inclined€to€agree€with€Plaintiffððs€interpretation€of€this€clause€as€allowing€Bank€to€advanceÏrequests€before€the€stage€of€completion€set€out€in€the€agreement€but€does€not€give€the€BankÏauthority€to€disperse€any€portion€of€the€proceeds€except€for€the€projects€described€in€the€agreement,Ïto€wit,€lot€numbers€1,€2,€3,€4,€5€and€6€of€Garden€Hills€Subdivision,€Section€A€and€lots€17€and€18Ïof€Garden€Hill€Subdivision,€Section€B.ÌÌà àBank€further€relies€upon€the€following€language€from€the€Cross€Pledge€Agreement:ÌÌÓÓà8 àà àNow,€in€order€to€secure€the€prompt€and€full€payment€of€eachÏnote€of€Borrower€now€or€hereinafter€held€by€Lender€(hereinafter€forÏconvenience€referred€to€as€ð ðThe€Notesðð)€at€its€maturity€or€respectiveÏmaturities,€as€well€as€each€and€every€portion€of€each€of€the€same€thatÏmay€be€renewed€to€a€more€distant€maturity,€Borrower€does€herebyÏand€by€these€presents€pledge,€pawn€and€deliver€unto€Lender,€itsÏtransferees,€successors€and€assigns,€all€of€the€Notes.€€The€Notes€soÏpledged€herein€to€Lender€shall€be€held€by€Lender€as€pledges€and€isÏhereby€and€shall€remain€pledged€to€secure€the€payment€to€Lender€ofÏeach€and€every€of€the€The€Notes€in€full.ÌÌà8 àà àIt€is€the€intent€and€purpose€of€this€Agreement€to€fully€secureÏLender€of€all€obligations,€due€by€Borrower€to€Lender,€and€in€theÏevent€that€the€security€of€any€one€or€more€of€The€Notes€is€notÏadequate€or€sufficient€(in€the€sole€discretion€and€judgment€ofÏLender)€at€any€point€in€time,€and€in€such€event€the€other€Notes€andÏtheir€respective€securities€shall€be€held€and€used€by€Lender€as€crossÏcollateral€and€security€for€such€other€Notes.ÌÌà8 àà àLender€shall€not€be€obligated€to€release€or€surrender€any€ofÏthe€Notes€or€any€of€the€securities€represented€thereby€until€fullyÏsatisfied€that€the€remaining€securities€are€adequate€(in€Lenderððs€soleÏdiscretion€and€judgment€and€sufficient€to€fully€repay€all€suchÏremaining€Notes.ÌÌà8 àà àLender€is€hereby€authorized€to€collect€(by€suit,€foreclosure€orÏotherwise),€from€Borrower€the€full€face€principal€amount€of€anyÏNote€though€the€full€face€amount€of€same€may€not€be€due€thereonÏand€apply€the€funds€so€received€to€the€balance€due€on€any€other€NoteÏor€Notes€held€by€Lender.ÌÌÌÌÓÓà àThis€document€was€apparently€executed€in€behalf€of€GHI€by€Danny€Anderson,Ïpresident,€and€Danny€Anderson€and€Dennis€Clayton€individually.€€However,€we€have€previouslyÏnoted€that€Clayton€alleges€that€his€signature€on€this€document€is€a€forgery.€€While€that€assertion€isÏnot€reiterated€in€his€affidavit€filed€in€response€to€Bankððs€motion€for€summary€judgment,€it€is€notÏrefuted€by€Bank.€€The€party€moving€for€summary€judgment€bears€the€burden€of€demonstrating€thatÏno€genuine€issues€of€material€fact€exist.€€òòò òByrd€v.€Hallóóó ó,€847€S.W.2d€at€210.€€As€we€interpret€thisÏlanguage,€the€borrower€pledges€all€of€the€notes€it€has€with€Lender€to€secure€the€repayment€of€all€theÏnotes.€€It€allows€the€Bank€to€apply€payments€made€by€a€lender€to€any€of€lenderððs€notes€held€by€theÏBank.€€We€do€not€find€this€language€to€authorize€the€Bank€to€use€the€proceeds€from€one€loan€toÍsatisfy€another.€€ÌÌà àBank€further€relies€upon€a€corporate€resolution€of€the€board€of€directors€of€GHIÏexecuted€by€Danny€Anderson€as€president€and€Dennis€Clayton€as€secretary.€€This€authorizes€theÏpresident€of€GHI€to:ÌÌÓÓà8 àà à(a)€Negotiate€and€procure€loans€fromÌà8 àòòUnion€Savings€Bank,€Covington,€TN€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óó€€€€€€€€€€€€€€€€€ÏName€of€Bank€€€€€€€€€€€€€€€€Address€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€up€to€anÏamount€not€exceeding€(if€there€is€no€limit,€so€indicate)€òòno€limitóóÏ$_________€in€the€aggregate€at€any€one€time€outstanding;Ìà8 àà à(b)€Discount€with€said€Bank,€commercial€or€other€businessÏpaper€belonging€to€this€Corporation,€made€or€drawn€by€or€uponÏthird€parties,€without€limit€as€to€amount;Ìà8 àà à(c)€Give€security€for€any€liabilities€of€this€Corporation€to€saidÏBank€by€pledge€or€assignment€or€a€lien€upon€any€real€or€personalÏproperty,€tangible€or€intangible,€of€this€Corporation,€andÌà8 àà à(d)€Execute€in€such€form€as€may€be€required€by€the€Bank€allÏnotes€and€other€evidences€of€such€loans,€all€instruments€of€pledge,Ïassignment€or€lien,€and€that€none€of€the€same€shall€be€valid€unlessÏso€signed€or€endorsed,€provided,€however,€that€the€endorsement€ofÏpromissory€notes€discounted€may€be€effected€by€any€one€of€them.Ìà8 àà àð ðRESOLVED€FURTHER,€that€said€Bank€be€and€it€is€herebyÏauthorized€and€directed€to€pay€the€proceeds€of€any€such€loans€orÏdiscounts€as€directed€by€the€persons€so€authorized€to€sign,€whetherÏso€payable€to€the€order€of€any€of€said€persons€in€their€individualÏcapacities€or€not,€and€whether€such€proceeds€are€deposited€to€theÏindividual€credit€of€any€said€persons€or€not;ððÌà8 àà àð ðRESOLVED€FURTHER,€that€this€resolution€shall€continueÏin€force,€and€said€Bank€may€consider€the€holders€of€said€offices€andÏtheir€signatures,€respectively,€to€be€and€continue€as€set€forth€in€theÏcertificate€of€the€Secretary€of€this€Corporation€accompanying€a€copyÏof€this€resolution€when€delivered€to€said€Bank€or€in€any€similarÏsubsequent€certificate,€until€notice€to€the€contrary€in€writing€is€dulyÏserved€on€said€Bank.ððÌÌÌÌÓÓWe€find€no€language€in€this€document€to€authorize€the€Bank€to€apply€the€proceeds€of€a€particularÏconstruction€loan€agreement€to€anything€other€than€the€construction€of€that€particular€project.ÌÌà àThe€final€document€upon€which€Bank€relies€is€entitled€ð ðGUARANTY.ðð€€PursuantÏto€this€agreement,€Danny€Anderson€and€Dennis€Clayton€agree€to€jointly€and€severally€guarantee€theÍfull€and€prompt€payment€to€Bank€at€maturity€any€and€all€indebtedness€incurred€by€GHI.€€It€is€whatÏis€known€as€a€continuing€guaranty€in€that€it€remains€in€full€force€and€effect€until€all€of€debtorsÏindebtednesses€are€fully€paid.× ƒ, ××  ×€€This€document€further€provides:ÌÌÓÓà8 àà àThe€liability€hereunder€shall€in€no€wise€be€affected€orÏimpaired€by€(and€said€bank€is€hereby€expressly€authorized€to€makeÏfrom€time€to€time,€without€notice€to€anyone),€any€sale,€pledge,Ïsurrender,€compromise,€settlement,€release,€renewal,€extension,Ïindulgence,€alteration,€substitution,€exchange,€change€in,Ïmodification€or€other€disposition€of€any€of€said€indebtedness,Ïobligations€and€liabilities,€either€express€or€implied,€or€of€anyÏcontract€or€contracts€evidencing€any€thereof,€or€of€any€security€orÏcollateral€therefor.€€The€liability€hereunder€shall€in€no€wise€beÏaffected€or€impaired€by€any€acceptance€by€said€Bank€of€any€securityÏfor€or€other€guarantors€upon€any€of€said€indebtedness,€obligationsÏor€liabilities,€or€by€any€failure,€neglect€or€omission€on€the€part€ofÏsaid€Bank€to€realize€upon€or€protect€any€of€said€indebtedness,Ïobligations€or€liabilities,€or€any€collateral€or€security€therefor,€or€toÏexercise€any€lien€upon€or€right€of€appropriation€of€any€moneys,Ïcredits€or€property€of€said€Debtor,€possessed€by€said€Bank,€towardÏthe€liquidation€of€said€indebtedness,€obligations€or€liabilities,€or€byÏany€application€of€payments€or€credits€thereon.€€Said€Bank€shallÏhave€the€exclusive€right€to€determine€how,€when€and€whatÏapplication€of€payments€and€credits,€if€any,€shall€be€made€on€saidÏindebtedness,€obligations€and€liabilities,€or€any€part€of€them.€€InÏorder€to€hold€the€undersigned€liable€hereunder,€there€shall€be€noÏobligation€on€the€part€of€the€said€Bank€at€any€time€to€first€resort€to,Ïmake€demand€on,€file€claim€against,€or€exhaust€its€remedies€againstÏthe€Debtor,€any€one€or€more€of€the€undersigned,€or€other€persons€orÏcorporations,€their€properties€or€estates,€or€to€resort€to€and€exhaustÏits€remedies€against€any€collateral,€security,€property,€liens€or€otherÏrights€whatsoever.€€It€is€expressly€agreed€that€said€Bank€may€at€anyÏtime€make€demand€for€payment€or€payments€on,€or€bring€suitÏagainst,€the€undersigned€guarantors,€jointly€or€severally,€or€any€oneÏor€more€of€the€undersigned,€less€than€all,€without€impairing€theÏrights€of€the€Bank€against€the€others€of€the€undersigned;€and€that€theÏBank€may€compound€with€any€one€or€more€of€the€undersigned€forÏsuch€sums€as€it€may€see€fit€and€release€such€of€the€undersigned€fromÏall€further€liability€to€the€Bank€for€such€indebtedness€withoutÏimpairing€the€right€of€the€Bank€to€demand€and€collect€the€balance€ofÏsuch€indebtedness€from€others€of€the€undersigned€not€so€released.ÌÌÌÌÓÓThis€document€expressly€authorizes€Bank,€without€notice€to€anyone,€to€make€modification€or€otherÏdisposition€of€any€of€said€indebtedness,€or€of€any€contract€or€contracts€evidencing€any€thereof.€ÏThe€January€1990€Construction€Loan€Agreement€provides€that€ð ðthe€loan€contemplated€hereby€shallÏbe€evidenced€and€secured€by€the€following€instruments€and€documents,€along€with€such€otherÏinstruments€and€documents€as€the€Bank€may€reasonably€require.ðð€€As€we€interpret€this€languageÏcontained€in€the€Guaranty€agreement,€the€Bank€was€authorized€to€apply€the€proceeds€from€theÏsecond€note€to€complete€the€homes€financed€by€the€first€note.ÌÌà àThe€plaintiffs€further€allege€that€a€least€one€member€of€the€Bankððs€board€of€directorsÏand/or€members€of€their€family€were€paid€for€materials€that€went€into€the€first€project€from€loanÏfunds€that€were€loaned€for€the€second€project.€€It€is€not€alleged€that€these€were€not€bona€fide€debtsÏand€we€therefore€conclude€that€the€Bank€did€not€operate€improperly€or€violate€any€duty€to€theÏplaintiffs€by€satisfying€those€indebtednesses.€€Furthermore,€both€Clayton€and€Anderson€areÏindividually€liable€on€all€of€the€notes€pursuant€to€the€Guaranty€agreement.ÌÌà àThe€complaint€further€alleges€that€Bank€ð ðdid€conspire€with€Danny€Anderson€toÏdefraud€him€(Clayton)€of€funds€borrowed€from€the€defendant.€€This€conspiracy€to€defraudÏPlaintiffs€resulted€in€severe€economic€hardship€to€the€plaintiffs.ðð€€All€pleadings€shall€be€soÏconstrued€as€to€do€substantial€justice.€€Rule€8.06€T.R.C.P.€€However,€when€averring€fraud,€theÏcircumstances€constituting€fraud€shall€be€stated€with€particularity.€€Rule€9.02€T.R.C.P.€€It€is€notÏnecessary€to€actually€employ€the€word€ð ðfraudðð€as€fraud€is€a€legal€conclusion€drawn€from€the€facts.€Ïòòò òSullivant€v.€Americana€Homes,€Inc.óóó ó,€605€S.W.2d€246,€249€(Tenn.€App.€1980).€€TheÏcomplaint€in€this€cause€fails€to€allege€fraud€with€particularity.ÌÌà àFinally€Plaintiff€avers€that€Bank€breached€a€duty€owed€to€Plaintiff€as€customers€byÏallowing€Anderson€to€divert€funds€for€his€own€personal€use.€€As€previously€noted,€the€corporateÏresolution€authorized€the€Bank€to€pay€the€loan€proceeds€ð ðas€directed€by€the€persons€so€authorizedÍto€sign,€whether€so€payable€to€the€order€of€any€of€said€persons€in€their€individual€capacities€or€not€.Ï.€.ðð€€Clayton€does€not€dispute€that€he€executed€the€corporate€resolution€as€corporate€secretary.ÌÌà àWe€do€not€find€the€documents€to€be€ambiguous.€€While€Mr.€Clayton€alleges€that€hisÏsignature€was€forged€on€the€Cross€Pledge€Agreement,€we€do€not€find€any€language€in€thatÏagreement€to€be€pertinent€to€the€issues€before€us.€€The€judgment€of€the€trial€court€granting€summaryÏjudgment€in€favor€of€the€defendant€is€affirmed.€€Costs€of€this€cause€are€taxed€to€the€Appellants.ÌÌÓÓà àà àà àà àà àà à____________________________________Ìà àà àà àà àà àà àFARMER,€J.ÌÌÌÌ______________________________ÌCRAWFORD,€P.J.,€W.S.€(Concurs)ÌÌÌÌ______________________________ÌLILLARD,€J.€(Concurs)Ì