Hills Oil & Transfer, Inc. v. Havana National Bank (In Re Hills Oil & Transfer, Inc.)

OPINION

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

In this case the parties agree there are no factual issues and have filed cross motions for summary judgment. The Debtor maintained a checking account with the Defendant. On August 1, 1991, the balance of the account was a positive $5,652.91. At that point the Debtor began to overdraw the account. As deposits were made the proceeds were used first to satisfy current checks drawn against the ac count and then the oldest overdrafts. The Bank permitted this condition to exist for a 61 day period. During this period, except for September 30, 1991,…