Opinion
June 27, 1941.
Appeal from the Municipal Court of the City of New York, Borough of Manhattan, First District.
Newman Bisco [ Martin L. Stein of counsel], for the appellant.
Harold S. Mokotoff, for the respondent.
The bank was authorized to make payment on behalf of the maker of the note, one of its depositors, even though there was an insufficient credit to the account of the depositor. The overdraft thus paid by the bank may be recovered. ( Payne v. Freer, 91 N.Y. 43; Prowinsky v. Second Nat. Bank, 265 F. 1003.) The discharge in bankruptcy of the depositor did not affect the bank's claim as it arose after the filing of the involuntary petition in bankruptcy against the depositor. ( Everett v. Judson, 228 U.S. 474; Matter of Paley [ Ritholtz], 260 A.D. 632.)
Judgment and orders reversed, with ten dollars costs, and defendant's motion denied and plaintiff's motion granted.
All concur. Present — HAMMER, SHIENTAG and MILLER, JJ.