Bank Leumi Trust Co. of New York v. Collins Sales Serv., Inc.

OPINION OF THE COURT

Memorandum.

The order appealed from should be affirmed, with costs, for the reasons stated at the Appellate Division.

We take this opportunity, however, to comment upon defendants’ use of section 9-318 of the Uniform Commercial Code as an affirmative defense in this action. Plaintiff Bank Leumi Trust Co. loaned money to Precision Graphics, Inc., this loan being secured, in part, by an interest in Precision’s accounts receivable. Precision then sold goods to defendant Seseo Designs, Inc., for which Seseo was obligated to pay Precision approximately $8,000 net. It is from this…