The opinion of the court was delivered by: HARRIS
STANLEY S. HARRIS, UNITED STATES DISTRICT JUDGE
This action is before the Court on the garnishee's motion for summary judgment and plaintiff's cross-motion for summary judgment. Upon consideration of the motions, the pleadings filed in support of and in opposition thereto, and the entire record herein, the Court grants the garnishee's motion for summary judgment and denies plaintiff's motion for summary judgment.
On March 19, 1984, the defendant, Americans With Hart, Inc. (AWH), executed a promissory note whereby the garnishee, The National Bank of Washington (NBW), agreed to loan AWH up to $ 3.5 million (hereinafter the line of credit). That promissory note and three subsequent promissory notes between AWH and NBW were modified and consolidated into one debt pursuant to an agreement dated February 6, 1986. All four of the notes and the modification and consolidation agreement incorporated the terms of a security and loan agreement dated March 19, 1984. Pursuant to the March 19, 1984, security and loan agreement, AWH granted NBW a security interest in several categories of designated collateral. The collateral described by the security and loan agreement included, among other items, all of AWH's inventory, which included 106 prints by Robert Rauschenberg and payments from any fund-raising events held by AWH. The Rauschenberg prints also were described as collateral in a separate security agreement between AWH and NBW dated February 8, 1985. NBW held the prints in its possession.
The plaintiff, Tri-State Envelope of Maryland, Inc. (Tri-State), was awarded a judgment against AWH in the amount of $ 133,648.26, in the United States District Court for the District of Maryland on August 11, 1986. On that date, Tri-State served a writ of attachment on NBW to which NBW responded and confessed $ 1,241.47. NBW subsequently made payment to Tri-State in that amount.
As of November 10, 1986, AWH owed NBW $ 573,746.43. On November 20, 1986, AWH held a fund-raising event during which it raised $ 6,630 in donations and $ 2,000 from the sale of three of the Rauschenberg prints. Officials of NBW were present at the event and took possession of all the contributions made to AWH. Those funds, which consisted of cash and checks, remained in the possession of NBW officials until they deposited the funds in a night depository at an NBW branch office. The following day, Tri-State served a second writ of attachment upon NBW. In responding to the interrogatories served with the writ, NBW stated that it was not indebted to AWH, but that it held a perfected security interest in, among other items, the following:
(1) $ 6,630 in proceeds from the November 20 fund-raising event.
(3) The remaining Rauschenberg prints.
Additionally, NBW stated it possessed $ 563.56 from two of AWH's checking accounts and that it had set off that amount to reduce AWH's debt.
Following NBW's response to Tri-State's interrogatories, Tri-State filed a motion for judgment of condemnation as to the property and credits disclosed in NBW's response. The Court denied that motion. Subsequently, Tri-State and NBW filed cross-motions for summary judgment.
In its motion for summary judgment, Tri-State alleges that its writ may properly attach to ...