Kenney's Franchise Corp. v. Central Fidelity Bank NA, Lynchburg

MEMORANDUM OPINION

TURK, Chief Judge.

Appellant Central Fidelity Bank has appealed from an order of the Bankruptcy Court for the Western District of Virginia directing the Bank to turn over the debtor’s funds with appropriate interest.

The facts of this case were stipulated by the parties as follows. On December 21, 1978, Kenney’s Franchise Corporation (Ken-ney’s) opened a checking account with the Central Fidelity Bank (Bank). The account was set up in the regular course of business and used for the purposes of a general checking account. In March, 1979, Central Fidelity entered into a loan…