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BAY AREA BANK v. FIDELITY & DEPOSIT CO. OF MARYLAND

No. C-84-1642-WWS.

629 F.Supp. 693 (1986)

BAY AREA BANK, Plaintiff, v. FIDELITY AND DEPOSIT COMPANY OF MARYLAND, Defendant.

United States District Court, N.D. California.

March 10, 1986.

Attorney(s) appearing for the Case

Daniel J. Lanahan, Law Offices of Ropers, Majeski, Kohn, Bentley & Wagner, San Francisco, Cal., for plaintiff.

Michael B. McGeehon, David E. Bordon, David E. Wood, Sedgwick, Detert, Moran & Arnold, San Francisco, Cal., for defendant.

MEMORANDUM OF OPINION AND ORDER

SCHWARZER, District Judge.

This is an action to recover under a Bankers Blanket Bond for losses sustained by plaintiff bank when credit card sales drafts proved to be uncollectible. Defendant contends that recovery is barred by the policy rider that excludes losses resulting from withdrawals from a depositor's account which has been credited with uncollected items.

FACTS

Kevin Flynn entered into a Bank Card...

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