Wear v. Buffalo Bank (In Re 4-S Corp.)

MEMORANDUM OPINION

KAREN M. SEE, Bankruptcy Judge.

The former debtor in possession filed this action against Buffalo Bank for recovery of funds from debtor’s bank accounts which the bank applied to balances due on two promissory notes. The trustee was later substituted as plaintiff. Plaintiff contends the funds were taken by means of a pre-petition setoff. It is difficult to pin down the statutory authority on which plaintiff relies due to the sketchiness of plaintiff’s complaint and post-trial brief. However, it is apparent, after examining the arguments at trial and the pleadings and briefs…