Schmidt v. Bank of Commerce
New Mexico Supreme Court
Appeal from the District Court for 'Bernalillo County before Ira A. Abbott, Associate Justice. Where an insolvent person has money on deposit in a bank subject to check, and also owes the bank upon a promissory note, upon such insolvent person being adjudged a bankrupt, the bank is entitled to have the amount of the bankrupt’s deposit set off against the sum due on the promissory note, and to prove its claim against the bankrupt for the balance.
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Appeal from the District Court for 'Bernalillo County before Ira A. Abbott, Associate Justice. Where an insolvent person has money on deposit in a bank subject to check, and also owes the bank upon a promissory note, upon such insolvent person being adjudged a bankrupt, the bank is entitled to have the amount of the bankrupt’s deposit set off against the sum due on the promissory note, and to prove its claim against the bankrupt for the balance. West v. Bank of Lahoma, 85 Pac. 469; Clark v. Northampton National Bank, 35 N. E. 108; Hooks v. Gila Valley Bank & Trust Co., 100 Pac. 806; New York…
1Opinion of the Court
OPINION OF THE COURT.
PARKER, J.
The appellant contends for a construction of sub-division “b” of the Bankruptcy Act to which we cannot give our consent. It contends that an actual intent on the part of the bankrupt to create a preference, as well as the fact that the creditor preferred shall have reasonable cause to believe that the transaction was intended thereby to give preference, is necessary in order to authorize' the recovery of the subject matter of the preference by the trustee in bankruptcy. It cites Hardy v. Gray, et al., 144 Fed. 922, in support of the contention, which case seems…
2Cases cited8 opinions
- Coder v. ArtsSupreme Court of the United States · 1909
- Western Tie & Timber Co. v. BrownSupreme Court of the United States · 1905
- Hardy v. GrayCourt of Appeals for the First Circuit · 1906
- Van Iderstine v. National Discount Co.Court of Appeals for the Second Circuit · 1909
- Benedict v. . DeshelNew York Court of Appeals · 1903
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