In re the General Assignment for the Benefit of Creditors of Margolis & Meadow

The sum which appellant sought to reach was the proceeds of a bank account of the assignor. The bank had previously paid it to the assignee on demand.

At the time of the assignment the bank was the holder of an unmatured trade acceptance for $1,422.50, which it had discounted, and on which the assignor was liable. When the deposit was paid to the assignee, the bank overlooked the assignor’s liability on the trade acceptance.

The bank claims it had the right to set off the bank balance against the trade acceptance, pursuant to section 151 of the Debtor and Creditor Law.

The relevant portions of…