TOWN & COUNTRY STATE BANK v. FIRST STATE BANK

Nos. C2-82-1574, C8-83-861.

358 N.W.2d 387 (1984)

TOWN & COUNTRY STATE BANK OF NEWPORT, Appellant, (C2-82-1574) Plaintiff (C8-83-861), v. FIRST STATE BANK OF ST. PAUL, defendant and third party plaintiff, Respondent, v. HERITAGE STATE BANK, third party defendant, Appellant (C8-83-861). Richard G. Frietag et al., Third Party Defendants.

Supreme Court of Minnesota.

Rehearing Denied January 4, 1985.


Attorney(s) appearing for the Case

Robert R. Weinstine, Darron C. Knutson, St. Paul, for Town & Country State Bank of Newport.

Richard D. Donohoo, Gregory J. Holly, St. Paul, for Heritage State Bank.

David A. Ranheim, Joseph H. Anderson, Minneapolis, for First State Bank of St. Paul.

Heard, considered and decided by the court en banc.


SIMONETT, Justice.

This case concerns the application of provisions of the Uniform Commercial Code to three banks which found themselves involved in a customer's check kiting scheme.

Richard G. Freitag engaged in a check kiting operation involving personal and corporate checking accounts maintained at five banks. First State Bank of St. Paul, Freitag's main bank, was the center of the kite. Freitag transferred checks...

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