Meyer v. Idaho First National Bank

McQUADE, Justice.

This action arises out of a bank’s set-off of the funds in a depositor’s checking account against the depositor’s note that was in default to the bank. The plaintiff-appellant, George Meyer, operates a repair and retail sale of firearms business as a sole proprietorship. Meyer maintained a business checking account with the defendant-respondent, the Idaho First National Bank, and in 1971 he borrowed $2,-886.94 from the bank repayable in $500 monthly installments. The appellant made three monthly payments, but failed to pay the fourth installment and paid only $350 the fifth…