Cherno v. Bank of Babylon

Plaintiff as assignee for the benefit of creditors of Elwood Auto Parts, Inc. sues, by leave of court, for the conversion by defendant bank of assets of the assignor. The complaint sets forth three causes of action: the first is for the conversion; the second, for punitive damages; and the third, for violation of section 1433 of the Penal Law. Plaintiff moves for summary judgment and for the purposes of this motion concedes the validity of the security agreement held by the bank. That agreement gave the bank the right in the event of default “ (a) to declare the Note and all Obligations due…