A Chase Manhattan Corp. subsidiary has been hit with its second lawsuit in a month over loans to a mortgage company that went bankrupt.Chase Bank of Texas NA was "grossly negligent" in monitoring a $25 million line of credit that it extended to Southfield, Mich.-based Mortgage Corporation of America in November 1998 for a warehouse, said Coastal Bancorp. in a suit filed Jan. 12.

Coastal, a $3 billion-asset Houston thrift holding company, bought a 40% participation in the loan, but Mortgage Corporation of America defaulted when it filed for bankruptcy protection in January 1999.

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