Kamberg v. Springfield National Bank

This is an action by the trustee in bankruptcy of a corporation named the Fair Bag Company *25to recover an alleged fraudulent preference amounting to $800. A few days before October 21, 1933, the corporation and one Godfrey engaged in the exchange or "kiting” of worthless checks. The check which Godfrey drew on a bank in Connecticut and gave to the corporation was deposited by the latter in the defendant bank, which credited the amount to the corporation, permitted the corporation to draw against it, and paid the checks so drawn. Godfrey’s check was returned unpaid to the defendant bank.

The…