Algernon L. Butler, Jr., Trustee in Bankruptcy for Cheryl Lynn Harper v. Nationsbank, N.A. (Formerly Ncnb National Bank of North Carolina)

OPINION

MURNAGHAN, Circuit Judge:

The instant case arose from the bankruptcy of Cheryl Lynn Harper. In July 1989, Cheryl’s husband, James C. Harper, forged an endorsement on a check and deposited it into his trust account at what is now Nations-Bank (“the Bank”). In December 1989, James filed for relief in bankruptcy. When the payor bank of the check later notified NationsBank that the endorsement on the check had been forged, NationsBank attempted to recover the amount of the check from James, whose debts were discharged in bankruptcy on April 18, 1990. In June 1990, under a plan of repayment…