Legal Opinion
Daly v. Atlantic Bank of New York
Appellate Division of the Supreme Court of the State of New York
Decided July 14, 1994PublishedCited by 4 opinions
1Opinion of the Court
OPINION OF THE COURT
Ellerin, J.
At issue on this appeal is whether defendant Atlantic Bank of New York (ABNY) wrongfully utilized funds on deposit in two accounts held in the name of third-party defendant Queensboro Management, Inc. (QMI) to offset debts owed to the bank by QMI.
Generally, in the absence of agreement to the contrary, a bank is entitled to apply a deposit to the payment of a debt due it by the depositor (9 NY Jur 2d, Banks and Financial Institutions, § 304, at 542). However, when a bank is on notice that funds in a depositor’s account are owned by a third party, the bank cannot…
2Cases cited4 opinions
- Union Stock Yards Bank v. GillespieSupreme Court of the United States · 1890
- Raymond Concrete Pile Co. v. Federation Bank & Trust Co.New York Court of Appeals · 1942
- Schreibman v. Chase Manhattan BankAppellate Division of the Supreme Court of the State of New York · 1962
- Gerrity Co. v. Bonacquisti Construction Corp.Appellate Division of the Supreme Court of the State of New York · 1989
3Cited by4 opinions
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