Independence Federal Savings Bank announced that a couple who guaranteed two rounds of financing on a Washington D.C. condominium conversion project and who pledged three properties allegedly worth $4 million as collateral, cannot prove the lender acted in bad faith under the controlling D.C. law in structuring the interest reserved on the financing, paying tax liens on the collateral property out of the loan proceeds or buying the three properties for $15,000 at foreclosure, and an Alexandria U.S. District Court grants summary judgment to plaintiff lender. Under the controlling law of the District of Columbia, in order to establish a breach of the duty of good faith and fair dealing, the moving party must establish that the would-be breaching party's actions were based on bad faith or were arbitrary and capricious. The guarantors argue that Independence Federal Savings Bank prematurely depleted the loan reserve and took 'construction line items' in the loan budget and charged them to interest, leaving the project with insufficient funds to complete the construction. The guarantors also argue that IFSB took $48,923 from the construction budget to pay taxes not included in the line item, and that IFSB interfered with their attempt to find supplemental financing from the D.C. Housing Authority by commencing foreclosing proceedings while the DCHA loan was close to closing.