Breaking ranks with other banks ensnared in an alleged loan scam, CoreStates Financial Corp. Tuesday sued Signet Banking Corp. to recover the $17.9 million it may have lost in a $324 million loan participation led by Signet.

CoreStates, in the suit filed in U.S. District Court in Philadelphia, seeks $18 million in damages and attorneys' fees from Signet, charging that the Richmond, Va.-based bank encouraged it to make the $19.1 million loan and then agreed to "indemnify" it against inaccuracies or misrepresentations.

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