Stauffer Seeds, Inc. v. Nebraska Security Bank

This case arises out of a dispute concerning a check in the amount of $10,000 drawn on the account of Larry Heinrichs in the defendant, Nebraska Security Bank, and payable to the plaintiff, Stauffer Seeds, Inc.

The plaintiff deposited the check in its bank, Farmers State Bank & Trust Co. It was received by the defendant in a federal cash letter on or about December 31, 1982. Since the funds in the Heinrichs account were insufficient to pay the check, it was marked “insufficient funds” and returned to the plaintiff’s bank on January 3,1983, the next business day.

The depositary bank then…