Christie v. First American Bank

OPINION

HUDDLESTON, Judge.

In Hanson v. American Nat’l Bank & Trust Co., Ky., 865 S.W.2d 302, 309 (1993), the Supreme Court of Kentucky left open the issue of whether a duty of good faith is owed in calling a demand note. We now join the majority of jurisdictions in this country that have answered this question in the negative. 1 While we have held that banks have a duty to exercise good faith and use ordinary care in handling customer accounts, 2 we are unwilling to extend that duty to the calling of demand notes. To impose a duty of good faith in calling demand notes would prevent lenders…