D’OENCH DUHME DOCTRINE

D’Oench  Duhme  doctrine  (dench  doom).  The  rule  that  estops  a  borrower  from  asserting  a

claim  or  defense  against  a  federal  successor  to  a  failed  financial  institution  —  if  the  claim  or

defense  is  based  on  a  side  or  secret  agreement  or  representation  —  unless  the  agreements  or

representations  have  been  (1)  put  into  writing,  (2)  executed  by  the  financial  institution  and

borrower when the loan was issued, (3) approved by the financial institution’s board of directors or

loan  committee,  and  (4)  made  a  permanent  part  of  the  financial  institution’s  records.D’Oench,

Duhme & Co. v. FDIC, 315 U.S. 447, 62 S.Ct. 676 (1942) (now partially codified at 12 USCA §

1823(e), and otherwise of questionable standing in light of O’Melveny & Myers v. FDIC, 512 U.S.

79, 114 S.Ct. 2048 (1994)). [Cases: Banks and Banking    505. C.J.S. Banks and Banking §§ 673,

676–679, 682–687, 690–694, 696, 699–705, 708–717.] [Blacks Law 8th]