In Re Liquidation of Canal Bank & Trust Co.

ODOM, Justice.

The state banking commissioner took charge of the Canal Bank & Trust Com pany for the purpose of liquidation on May 20, 1933. Prior to that date, Gay-Sullivan & Co., Inc., had executed its note in favor of the bank for $25,000, secured by collateral amounting to $100,-000. The note was made payable to the bank and fell due on May 22, two days after the bank went into liquidation. At the time the note fell due, Gay-Sullivan & Co., Inc., had on deposit in the bank a sum in excess of the amount due on its note. The bank had, prior to the maturity of the note and prior to the date…