BOOCHEVER, Circuit Judge:
This case concerns the liability of an errors-and-omission insurer of a mortgage banking corporation for losses due to the corporation's failure to apply properly the proceeds of loans secured for its normal business purposes from a commercial bank.
W.H. Opie & Company (Opie) borrowed money from the Bank of California (Bank) for operating expenses in connection with its mortgage-banking business, but violated the loan agreement...
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