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This section contains the nature of the case and procedural background.

P was a wholesale supplier of fuels to D1. D1 had an account in D and owed more than $7,000 on promissory notes. D1 issued check No. 2287, $3,763.25, to P, which was presented and returned unpaid for insufficient funds. D1 issued check No. 2304, $2,740.88, to P, which was presented and returned. D1 issued check No. 2324, $378.94, to P, which was presented and returned. P went to D and personally presented the three checks to D. D unconditionally refused payment of all three checks and returned them to P. At the close of business on November 10, 1975, two days before P's in person presentment, D1's account had a credit balance of $3,048.46. There was no account activity on November 11, 1975. On November 12, three deposits were made to the account, $209.27, $92.90, and $443.17. After P presented the checks, D set off D1's account for $1,006.75 and $2,700 that were credited to D1's note account, leaving a balance of $87.05. The credited notes were not then due. D had a financing statement and security agreement from D1 dated March 7, 1975. D1 did not object to the setoffs. P filed its petition on August 23, 1976. D1 was discharged as a bankrupt on December 7, 1976. D moved for summary judgment. The court granted the motion and P appealed.

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