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MAURICEVILLE NAT. BANK v. ZERNIAL

No. 94-1149.

892 S.W.2d 858 (1995)

MAURICEVILLE NATIONAL BANK, Petitioner v. Harvey ZERNIAL d/b/a Zerco Paint Co., Craft Systems, Inc., Bellard's Drapery, Inc., CSW Supply, Inc., Cobb Air Conditioning, Respondents.

Supreme Court of Texas.

Rehearing Overruled March 16, 1995.

Attorney(s) appearing for the Case

Thomas J. Sibley, Mickey R. Olmstead, Richard J. Clarkson, Beaumont, Ed Small, and Clint C. Small, Jr., Austin, for petitioner.

Terry W. Wood, Mel Shelander, and Ethan L. Shaw, Beaumont, for respondents.

PER CURIAM.

This case concerns a judgment of conversion against Mauriceville National Bank for exercising its contractual right to use a depositor's funds to offset obligations on a debt. Mauriceville National Bank used proceeds deposited by Blount Construction, Inc., a building contractor and depositor, to offset overdue payments on several outstanding loans. Blount had fallen behind on loan payments, and after he made a significant deposit, an officer of the bank...

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