Joseph Gillet, as Assignee for the Benefit of Creditors of John F. Talmage and Daniel Talmage

Summary

The Court of Appeals held that the bank’s collateral provision in a printed note prepared by the bank was limited to liabilities of the customer to the bank arising from their banking relationship and did not extend to a third‑party claim the bank purchased. Accordingly, the bank’s retention of the pledged securities to secure the $5,000 note was an unauthorized breach of trust and conversion, so the trial court’s verdict for the plaintiff was affirmed and the Appellate Division’s reversal was reversed.