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LEAVITT-BERNER v. AM HOME ASSUR

129 A.D.2d 199 (1987)

Leavitt-Berner Tanning Corporation, Respondent, v. American Home Assurance Company, Respondent, and Norstar Bank, Formerly State Bank of Albany, Appellant. (Action No. 1.) Norstar Bank of Upstate New York, Formerly State Bank of Albany, Appellant, v. American Home Assurance Company et al., Respondents. (Action No. 2.)

Appellate Division of the Supreme Court of the State of New York, Third Department.

July 2, 1987

Attorney(s) appearing for the Case

McNamee, Lochner, Titus & Williams, P. C. (David J. Wukitsch of counsel), for appellant.

Bouck, Holloway, Kiernan & Casey (Michael J. Longstreet and Stephen M. Kiernan of counsel), for American Home Assurance Company, respondent.

Hesson, Ford, Sherwood & Whalen (Michael J. Hutter of counsel), for Moore & Curtis, Inc., and another, respondents.

KANE, J. P., MAIN, YESAWICH, JR., and HARVEY, JJ., concur.

MIKOLL, J.

The facts underlying these two actions are as follows. Leavitt-Berner Tanning Corporation (hereinafter Leavitt-Berner) obtained a $400,000 loan from State Bank of Albany (hereinafter Norstar). The loan was secured by Leavitt-Berner's buildings, machinery, fixtures and accounts receivable. Leavitt-Berner was required, under the agreement, to maintain adequate...

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