Victor Werlhof Aviation Insurance v. Garlick

The principal issue in this case is whether a bank, otherwise lawfully entitled to a setoff, may exercise its right of setoff against a depositor’s account at the same moment it is presented with a writ of execution which seeks to levy on the same depositor’s account. We uphold the right of the Bank to the setoff.

A second issue is whether a bank may set off a matured debt against a depositor’s account when the debt is secured by collateral. Again, we hold that the Bank’s right of setoff in this case is not barred by the presence of collateral.

A third issue is whether § 30-4-303, MCA, modifies…