Industrial Commissioner v. Five Corners Tavern, Inc.

OPINION OF THE COURT

Jasen, J.

In this case, we are called upon to determine whether a depository bank’s statutory right of setoff (Debtor and Creditor Law, § 151) is extinguished by service of a tax compliance agent’s levy pursuant to CPLR 5232 (subd [a]).

The facts are not in dispute. In February, 1976, appellant Manufacturers Hanover Trust Company (hereinafter Manufacturers) extended a loan of approximately $1,800 to its depositor, Five Corners Tavern, Inc. (hereinafter Five Corners), to enable the latter to secure a liquor license. Pursuant to the *643terms of the loan agreement, Manufacturers…