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Falls Church Bank v. Wesley Heights Realty, Inc.

Court of Appeals of the District of Columbia
256 A.2d 915 (1969)


Wesley Heights Realty, Inc., and Leopold Boeckl (defendants) drew a check for $1,400 in favor of a customer. The customer deposited the check into his account with Falls Church Bank (the bank) (plaintiff). The bank then allowed the customer to withdraw $140 of that amount from his account on credit. The bank later discovered that the defendants had stopped payment on the check. The customer had no money remaining in his account to repay the $140 that had been withdrawn. The bank demanded the $140 from the defendants. When the defendants refused to pay, the bank sued the defendants. The trial court granted judgment in favor of the defendants, holding that the bank did not have a security interest in the check and was not a holder in due course for value. The bank appealed.

Rule of Law


Holding and Reasoning (Hood, C.J.)

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