(Download) "Kamberg v. Springfield Nat. Bank" by Supreme Judicial Court of Massachusetts # Book PDF Kindle ePub Free
eBook details
- Title: Kamberg v. Springfield Nat. Bank
- Author : Supreme Judicial Court of Massachusetts
- Release Date : January 31, 1935
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 68 KB
Description
LUMMUS, Justice. This is an action by the trustee in bankruptcy of a corporation named The Fair Bag Company, Inc., to recover
an alleged fraudulent preference amounting to $800. A few days before October 21, 1933, the corporation and one Godfrey engaged
in the exchange of 'kiting' of worthless checks. The check which Godfrey drew on a bank in Connecticut and gave to the corporation
was deposited by the latter in the defendant bank, which credited the amount to the corporation, permitted the corporation
to draw against it, and paid the checks so drawn. Godfrey's check was returned unpaid to the defendant bank. The defendant bank at once demanded reimbursement. The corporation had no money, but gave the bank its note for $800, dated
October 21, 1933, secured by an assignment of accounts receivable, upon which, between that date and December 20, 1933, the
bank collected $800 in satisfaction of the note. When the note was given and at all later times the corporation was insolvent
(Jump v. Bernier, 221 Mass. 241, 247, 108 N.E. 1027) and the bank had reasonable cause to believe that the corporation was
insolvent and that the transfer of the accounts receivable, if enforced, would effect a preference. Putnam v. United States
Trust Co., 223 Mass. 199, 111 N.E. 969; Wasserman v. Hollidge, 267 Mass. 460, 470, 166 N.E. 843, and cases cited. Brown v.
Palmer Clay Products Co. (Mass.) 195 N.E. 122. An involuntary petition in bankruptcy against the corporation was filed on
December 9, 1933, and it was adjudicated a bankrupt on February 5, 1934.