Continental Bankers Life Insurance Co. of the South v. Bank of Alamo

OPINION

FONES, Justice.

This is a suit to recover $50,000 deposited in the Bank of Alamo by Peoples Protective Life Insurance Company (PPLI), represented by a certificate of deposit (CD) dated May 5, 1974, due in thirty days. Bank refused payment and defended the suit on the theory that the deposit was first made in November 1973 as “security” for a $100,-000 loan to Peoples Protective Corporation (PPC), the parent corporation of the depositor, or in the alternative, that the parent’s domination of the subsidiary allowed bank to invoke the “instrumentality” rule to disregard the corporate…