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BUTLER v. NATIONSBANK, N.A.

No. 94-1824.

58 F.3d 1022 (1995)

Algernon L. BUTLER, Jr., Trustee in Bankruptcy for Cheryl Lynn Harper, Plaintiff-Appellee, v. NATIONSBANK, N.A. (formerly NCNB National Bank of North Carolina), Defendant-Appellant.

United States Court of Appeals, Fourth Circuit.

Decided July 5, 1995.

Attorney(s) appearing for the Case

ARGUED: David Alan Nash, Hogue, Hill, Jones, Nash & Lynch, Wilmington, NC, for appellant.

Algernon Lee Butler, Jr., Wilmington, NC, for appellee.

Before MURNAGHAN and MICHAEL, Circuit Judges, and YOUNG, Senior United States District Judge for the District of Maryland, sitting by designation.

OPINION

MURNAGHAN, Circuit Judge:

The instant case arose from the bankruptcy of Cheryl Lynn Harper. In July 1989, Cheryl's husband, James C. Harper, forged an endorsement on a check and deposited it into his trust account at what is now NationsBank ("the Bank"). In December 1989, James filed for relief in bankruptcy. When the payor bank of the check later notified NationsBank that the endorsement on the check had been forged, NationsBank attempted to recover...

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