E.F. Houghton & Co. v. Doe

*305BECK, Judge:

In this appeal we decide the nature of the notice that must be given to a bank by a third party under Section 606 of the Banking Code in order for the third party to assert successfully a claim to funds in a depositor’s account superior to that of the depositor or the bank itself.

The relevant facts in this case are undisputed. In February 1982, Timothy Burno, an investment clerk employed by appellant E.F. Houghton & Co. (“Houghton”), stole over $1,000,000 in United States Treasury notes from Houghton. The funds eventually were deposited into two accounts at appellee Mellon (then…