Barber v. First National Bank of Chillicothe (In Re Ostrom-Martin, Inc.)

OPINION

WILLIAM V. ALTENBERGER, Chief Judge.

In late December, 1991, Ostrom-Martin, Inc. (OMI), a grain company with several facilities in neighboring communities failed, and in early 1992 an involuntary petition under Chapter 7 of the Bankruptcy Code was filed against it. This adversary proceeding, brought by the Chapter 7 Trustee against the FIRST NATIONAL BANK OF CHIL-LICOTHE (CHILLICOTHE BANK) and the PRINCEVILLE STATE BANK (PRINCEVILLE BANK), to establish their liability for honoring a check with a forged endorsement, centers upon the actions of Kevin Martin, a director, shareholder and…