In First Bank of Ams. v. Motor Car Funding, 257 AD2d 287 [1st Dept 1999], the plaintiff bank purchased used car loans from the defendant, a car financing company. In the loan purchase agreements, defendant warranted that the loans complied with certain underwriting guidelines. In addition, when offering the loans to plaintiff, the defendant made representations about the quality of the collateral, the borrowers' credit history and the amounts of the down payments. Plaintiff alleged that many of these representations were false and that defendant induced plaintiff to buy less valuable loans by intentionally misrepresenting material facts about the individual loans so that the loans appeared to satisfy the warranties. The Court held that this misrepresentation was fraud, not a breach of contract because a warranty is not a promise to perform, but a statement of present fact. Moreover, the Court stated that the fraudulent inducement claim did not duplicate the breach of contract claim, and therefore survived a dismissal motion because the defendant's misrepresentations could not be "characterized merely as an insincere promise of future performance." (Id. at 292 .) The Court specifically found that the fraud claim was not rendered redundant "by the fact that these alleged misrepresentations breached the warranties made by [defendant] in the Agreement." (Id.)