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AUSTIN TEACHERS F.C.U. v. FIRST CITY BANK-NORTHWEST HILLS

No. 3-91-136-CV.

825 S.W.2d 795 (1992)

The AUSTIN AREA TEACHERS FEDERAL CREDIT UNION, Appellant, v. FIRST CITY BANK-NORTHWEST HILLS, N.A., Appellee.

Court of Appeals of Texas, Austin.

Rehearing Overruled April 15, 1992.

Attorney(s) appearing for the Case

Bruce H. Clark, Law Offices of Richey & Young, P.C., Austin, for appellant.

Richel Rivers, Randall C. Doubrava, Hilgers & Watkins, P.C., Austin, for appellee.

Before POWERS, JONES and SMITH, JJ.

SMITH, Justice.

A customer of Austin Area Teachers Federal Credit Union (the Credit Union) pledged her certificate of deposit at the Credit Union as collateral for her son's note to First City Bank-Northwest Hills, N.A. (First City). When the son defaulted, First City discovered the Credit Union had permitted its customer to withdraw her funds in contravention of the assignment agreement. First City sued the Credit Union for breach of contract. The Credit Union answered...

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