American Union Financial Corp. v. University National Bank

American Union Financial Corporation, plaintiff, brought suit against the defendant University National Bank of Peoria to recover *10,526 deposited by American in a passbook savings account. The Bank claimed that American’s account had been pledged by Larry Hartley, American’s president, to secure a bank loan to Prophecy Investors Corporation, and, when Prophecy defaulted on the loan, the Bank had applied the savings account to Prophecy’s debt. American denied that a binding pledge was made. Following a bench trial, judgment was entered in favor of American for *10,526, and the Bank appeals.

The…