The opinion of the court was delivered by: HERMAN
A non-jury trial was held in the above-captioned matter on June 5, 1978. The following are the Court's findings of fact and conclusions of law.
1. Mursor Builders, Inc. (hereinafter Mursor) is a general contractor engaged in the construction business with an office in Forty Fort, Luzerne County, Pennsylvania.
2. The Small Business Administration (hereinafter SBA) is an Agency of the United States of America with its local district office located at Suite 400, One Bala Cynwyd Plaza, 231 St. Asaphs Road, Bala Cynwyd, Montgomery County, Pennsylvania.
3. Roddy Realty, Inc. (hereinafter Roddy) is a Pennsylvania corporation with its office located at 468-488 Northampton Street, Edwardsville, Luzerne County, Pennsylvania.
4. Roddy was the owner of property improved with two commercial buildings known as "Wayne Building" and "Firestone Building" located at 468-488 Northampton Street, Edwardsville, Luzerne County, Pennsylvania (hereinafter said property referred to as the "premises").
5. On June 23, 1972, the said premises were severely damaged in the Hurricane Agnes Flood and required restoration before they could be utilized for commercial or industrial purposes.
6. Subsequent to said flood and shortly thereafter, Roddy contacted Mursor for the purpose of having its flood-damaged premises restored.
7. On November 1, 1972 SBA authorized a disaster loan to Roddy in the amount of $ 856,800,.$ 294,800 of which was to refinance a mortgage encumbering the real estate owned by Roddy and $ 526,000 of which was to be used to repair the damaged real estate owned by Roddy.
8. On December 31, 1972 a closing was held with regard to the aforesaid loan, wherein Roddy executed a promissory Note in the amount of $ 856,800 which was secured by an assignment of bond and mortgage from Susquehanna Savings and Loan Association and a mortgage in favor of SBA in the amount of $ 856,800 which mortgage was recorded with the Recorder of Deeds of Luzerne County, Pennsylvania on January 8, 1973.
9. On January 10, 1973, SBA ordered from the United States Treasury and disbursed to Roddy on its loan account $ 494,800 and on January 18, 1973 SBA ordered from the United States Treasury and disbursed to Roddy on its loan account $ 150,000.
10. On April 12, 1973, SBA amended its loan authorization such that the loan was increased from $ 856,800 to $ 1,070,800.
12. Following completion of the work by Mursor on February 13, 1973, Mursor submitted its invoice to Roddy in the amount of.$ 288,548 representing the unpaid balance due for the work performed by Mursor upon the premises.
13. Roddy questioned the detail of certain charges involved in the builder's billing and did not want the SBA to release the full amount as submitted in the invoice.
14. John B. Look, counsel for the SBA in charge of the Roddy loan, was concerned that a mechanic's lien by Mursor would destroy the ...