Rockland Trust Co. v. South Shore National Bank

This is an action in contract for the amount of a certified check, brought by the payee bank against the certifying bank. Both banks had extended credit to the same fraudulent customer, the drawer of the check. We hold that the check was “deposited in an account” and that the “credit given for the item” was not “withdrawn or applied” under the Uniform Commercial Code, G. L. c. 106, § 4-208 (1) (a). The plaintiff therefore had no security interest in the check, did not give value, and was not a holder in due course under § 4-209. Hence the certification was not final in favor of the plaintiff…