Summary
In Grand Prairie, the Texas Court of Civil Appeals' conclusion that Article 9 of the Texas Business Commerce Code rather than the equitable rule governed priority contests involving secured creditors and banks' right of setoff was expressly rejected by the Texas Supreme Court.
Summary of this case from Citibank (New York State), v. Interfirst BankOpinion
No. B — 5389.
October 15, 1975. Rehearing Denied November 12, 1975.
Appeal from the 191st District Court, Dallas County, Spencer Carver, J.
Haynes Boone, Donald C. Templin, Dallas, for petitioner.
Jenkens Gilchrist, William D. Sims, Jr., Dallas, for respondent.
The application of First National Bank of S.W.2d 525. In taking such action, we do no reversible error. Tex.Civ.App., 524 S.W.2d 525. In taking such action, we do not approve the holding that Chapter 9 of the Texas Business and Commerce Code controls the right of a bank to assert a set-off against the funds of a depositor. Section 9.104(9) of the Code excludes 'any right of set-off' from the application of Chapter 9.