Federal Deposit Insurance v. Mademoiselle of California

JERTBERG, Circuit Judge:

This is an appeal from "summary judgment in favor of appellees, Mademoiselle of California (hereinafter Mademoiselle) and Union Bank (hereinafter Union). Appellant, as receiver of San Francisco National Bank (hereinafter SFNB), brought this declaratory judgment action to determine 1) whether Mademoiselle is entitled to set off its deposit in account with SFNB against a note due SFNB, and if so 2) whether Union, as holder of an 80% participation interest in that note, is entitled to a preferred claim for 80% of the set-off. We affirm as to Mademoiselle and reverse as to…