Case Summary:
Trustee's motion for partial summary judgment in action to recover $125,000 setoff by bank against debtor's indebtedness to it is denied.  Bank did not waive its right to setoff by issuing a cashier's check; nor did purchase of a cashier's check create special account so as to destroy mutuality of obligations required for bank to exercise its right of setoff under Bankruptcy Act.  Substantial issues of material fact exist as to whether payee's interest in cashier's check arose before debtor-remitter filed bankruptcy, thus precluding summary judgment.

Statue/Rule References:
11 U.S.C. § 553 -- Setoff

Key Terms:
Setoff
Summary Judgment