Irving Trust Co. v. Textile Banking Co.

BONDY, District Judge.

The defendant acted as factor for the American Rayon Products Corporation. It did not consider the bankrupt a good credit risk, and required the American Rayon Products Corporation to guarantee the bankrupt’s account. The last shipment made to the bankrupt on defendant’s account was on July 8, 1929. After repeated demands, the bankrupt delivered to the' defendant on September 20,1929, a cheek for $2,763.20, dated October 1, 1929, and another for $2,878.34, dated October 11, 1929. Neither of these cheeks was paid when due, and the first was returned on account of…