Pioneer Knitting & Manufacturing Co. v. Kensington Security Bank & Trust Co.

Lewis, J.,

The Hamilton Knitting Mills, having a claim against the plaintiff for goods sold and delivered, assigned it, on October 15, 1930, to the defendant bank as collateral security for a loan made by the bank to Hamilton Knitting Mills.

On February 7,1931, the plaintiff deposited with the defendant bank for collection a cheek in the sum of $100.13. This amount was not collected and received by the defendant until February 17, 1931. The proceeds, less collection charges, amounted to $99.78.

On February 13, 1931, an involuntary petition in bankruptcy was filed against the plaintiff.

At the…