Texas Supreme Court
Robert M. Bandy v. First State Bank, Overton…
September 9, 1992835 S.W.2d 609
Summary
The Texas Supreme Court affirmed the Court of Appeals, holding that the bank properly exercised its equitable right of setoff against the decedent’s deposits for CDs 9355 and 10206 and the checking accounts, and that the bank did not improperly setoff the temporary administration CDs or CD 12229. The court also announced that a bank’s right of setoff applies regardless of whether the estate is solvent, and noted that the dissent disagreed with this rule.