Tri State Bank in Cairo, Illinois, has a loan receivable from Magellan Manufacturing Company. Magellan is six months late in making payments to the bank, and Sheila Boswell, a Tri State vice-president, is assisting Magellan to restructure its debt. With unlimited access to Magellan's records Boswell learns that the company is depending on landing a manufacturing contract from Loew's Brothers, another Tri State Bank client. Boswell also serves as Loew's loan officer at the bank. In this capacity she is aware that Loew's is considering declaring bankruptcy. No one else outside Loew's Brothers knows this. Boswell has been a great help to Magellan Manufacturing, and Magellan's owner is counting on her expertise in loan workouts to carry the company through this difficult process. To help the bank collect on this large loan, Boswell has a strong motivation to help Magellan survive.

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Apply the ethical judgment framework outlined in the chapter to help Sheila Boswell plan her next action.