Metompkin Bank & Trust Co. v. Bronson

This case requires a consideration of the rules dealing with the rights of a creditor holding collateral security in the distribution of an insolvent estate.

The Accomack Banking Company, Inc., engaged in a general banking business, finding itself in financial straits, on December 21, 1931, closed its doors and suspended business. At that time, it was indebted to the American Bank and Trust Company in the principal amount of $125,297.46, evidenced by notes and overdrafts of the debtor. The *497American Bank and Trust Company held as collateral security for the said indebtedness various receivables…