Creditor's Right to Reduce Advances by Debtor Payments

The case involved an obligor who had made payments to a creditor, and the central issue was whether the creditor, having provided advances, could reduce those advances by the amount the now-insolvent debtor had already paid. The court held that the creditor was entitled to reduce its advances by the payments already made by the insolvent debtor, applying the relevant statutory provision concerning the obligation to maintain and advances made in general.