Chase Manhattan Bank v. McLeish

It is undisputed that plaintiff bank did not send defendants the 10-day notice required by section 403 of the Personal Property Law until August 7,1964, and that in compliance with that section, and within the 10-day period, defendants notified the bank in writing that the work which was to be done by the bank’s assignor was far from complete.

In my opinion the bank acted at its peril in paying the money to the contractor on August 7, the very day it sent out the notice, instead of waiting the statutory period to hear from the home owners.

It is no answer to say that the bank relied on a…