Opinion ID: 507225
Heading Depth: 2
Heading Rank: 3

Heading: facts

Text: 10 On November 29, 1982, a check for $1,747,403.00, drawn on Colombian Coffee's account with Societe Generale and payable to Banco Popular Bogota (Banco Popular), arrived at the clearing house for payment. Payment of the check created an automatic overdraft of $1,033,135.07 in the Colombian Coffee account. 11 When Societe Generale learned of the overdraft, it presumably followed its customary procedure and checked with Colombian Coffee to find out whether they were depositing sufficient funds to cover the check. Colombian Coffee apparently informed the bank that two wire transfers were coming from Credit Lyonnais Panama--one for $500,000, and another for $700,000. 5 A corporate assistant at Societe Generale prepared an internal advice indicating that the money was indeed being transferred into the Colombian Coffee account by Credit Lyonnais and recommending that, because of this transfer, the bank should honor the check. 12 At the time that Societe Generale honored the check, however, the wire transfer had not yet arrived at the bank. Thus, Societe Generale listed an overdraft in Colombian Coffee's account from November 29 until November 30. 6 Societe Generale charged Colombian Coffee's account for this overdraft for the day of November 29, at a rate of 12.25% per annum. The charge amounted to $351.51. Deposition of Richard Magid at 58. 13 A credit ticket recording the wire transfer indicates that Societe Generale received the funds from Credit Lyonnais shortly after 4:00 p.m. on November 30. The funds came from C & S's account with Credit Lyonnaise. Approximately six months later, C & S filed for bankruptcy. Nordberg subsequently filed this suit against Societe Generale, seeking to avoid the $500,000 transfer as a fraudulent conveyance.