Mauriceville National Bank v. Zernial

This case concerns a judgment of conversion against Mauriceville National Bank for exercising its contractual right to use a depositor’s funds to offset obligations on a debt. Mauriceville National Bank used proceeds deposited by Blount Construction, Inc., a building contractor and depositor, to offset overdue payments on several outstanding loans. Blount had fallen behind on loan payments, and after he made a significant deposit, an officer of the bank contacted Blount to ask whether the bank could use some of the deposited funds to bring his interest payments current, and Blount approved.…