Bank of United States v. Braveman

The plaintiff bank, which, for the purposes of the submission is concededly insolvent, sues the defendant as indorser of a note made by Isidor Braveman, Inc. The defendant seeks to set off against her liability as indorser a sum on deposit to her credit with the plaintiff. The maker of the note is conceded to be solvent.

Were it not for the insolvency of the plaintiff, its counsel admits an absolute right of setoff in the defendant indorser. However, because of such insolvency, it is urged that this right becomes subordinate to the equities of general creditors and their right to an equable…