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COUTURE v. PAWTUCKET CREDIT UNION

No. 99-400-Appeal.

765 A.2d 831 (2001)

Lucille M. COUTURE et al. v. PAWTUCKET CREDIT UNION.

Supreme Court of Rhode Island.

January 29, 2001.

Attorney(s) appearing for the Case

Joseph P. Carroll, for plaintiff.

Matthew T. Oliverio, John T. Gannon, Pawtucket, for defendant.

Present WEISBERGER, C.J., LEDERBERG, BOURCIER, FLANDERS, and GOLDBERG, JJ.

OPINION

FLANDERS, Justice.

Does a creditor's contractual right to apply deposited funds against a debt owed to it survive the debtor's bankruptcy? More particularly, under an agreement with its account holders, can a bank apply the funds deposited in the holders' joint accounts against the balance due on a holder's defaulted mortgage loan, notwithstanding the discharge of the holder's mortgage debt in bankruptcy? For the reasons set off below, we answer...

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