Trinity National Bank v. Bobby Boggs, Inc.

GARWOOD, Circuit Judge:

This dispute involves $90,000 paid by a project general contractor to the trustee-in-bankruptcy of a now-bankrupt subcontractor for work the subcontractor had performed on the project. In the bankruptcy court, Trinity National Bank of Dallas (“Trinity Bank”), which had loaned working capital to the subcontractor, claimed that it was entitled to the $90,000 because of Trinity Bank’s security interest in the subcontractor’s accounts receivable. Contesting Trinity Bank’s claim was the Eastern Indemnity Company of Maryland (“Eastern Indemnity” or “the surety”), which had…