E. H. Hinds, Inc. v. Coolidge Bank & Trust Co.

The question for decision in this case is whether a bank which has a contractual right to set off any sum which may become due from the bank to one of its debtors against the liability of that debtor to the bank may avail itself of that right with respect to the amount which becomes due under the terms of an investment security which the bank issues and delivers to the debtor under the provisions of Article 8 of the Uniform Commercial Code (G. L. c. 106, §§ 8-101 et seq.) and which the debtor indorses in blank and delivers to a different creditor as collateral security for a loan from that…