GENERAL INSURANCE COMPANY OF AMERICA v. TILCON NEW YORK, INC.


294 A.D.2d 195 (2002)

741 N.Y.S.2d 693

GENERAL INSURANCE COMPANY OF AMERICA, Plaintiff, v. TILCON NEW YORK, INC., Appellant, and UNITED STATES OF AMERICA, Intervenor-Respondent.

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

Decided May 16, 2002.


The evidence fully supported the finding of the trial court that defendant had actual knowledge that the checks it received from the State of New York were funds from a statutory trust created under article 3-A of the Lien Law, and therefore defendant is not entitled to defend as a holder in due course (see, Lien Law § 72 [1]). To the extent defendant claims it took the checks under assignment, defendant's rights could be no greater than those of its assignor...

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