Bassett v. Mechanics Bank

The defendant bank is in receivership and the controversy before us arises out of the application of the Sponge Rubber Products Company, hereinafter called the plaintiff, a depositor, asking that it be paid from the proceeds of certain property in the hands of the receiver the difference between the amount of its deposit when the receivership began and the dividends it has received. On May 28, 1932, the plaintiff was indebted to the commercial department of the bank to the amount of $29,000, represented by five negotiable notes, all unsecured and none then due. On that day the bank borrowed a…