First American Commerce Co. (First American) (plaintiff) obtained a loan from First Security Realty Services (First Security) (defendant) secured by a commercial building owned by First American. The loan agreement gave First Security the right to approve new leases in the building and, in addition, provided that a percentage of the loan amount would be retained until First American had completed certain tenant improvements. On the day that the loan documents were executed, First Security assigned the loan to Washington Mutual Savings Bank (WAMU) (defendant) with the knowledge and consent of First American. When an opportunity to lease space in the building arose, First American requested approval from both First Security and WAMU. Neither approved. Later, First American completed the required improvements and requested that First Security release the loan funds being held back. First Security responded that it need not release the funds because it had delegated that obligation to WAMU. First American brought suit against both First Security and WAMU. The trial court awarded summary judgment to defendants with the exception of one claim for fraud against First Security. First American appealed.