In a case that could set a precedent for participants in warehouse loans that go sour, a subsidiary of Chase Manhattan Corp. has been sued for allegedly poor monitoring of a $185 million line of credit to a failed Michigan mortgage company.

Guaranty Federal Bank of Dallas claims that Chase Bank of Texas "failed in a number of respects to fulfill its duties and obligations" as warehouse agent and collateral custodian in the syndicated warehouse line for MCA Financial Corp. of Southfield, Mich.

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