Mike Pantalion, had on three prior occasions in the previous two months written checks for insufficient funds that he then covered through wire transfers from the Bank of Santa Fe. On Friday, September 17, 1993, Livingston deposited a $48,492.29 check from Mike Pantalion in Livingston's account at Hull Bank. On Tuesday, September 21, 1993, Linda L. Taylor, who as vice-president and cashier was an authorized officer of Hull Bank, notified Livingston's president and sole shareholder, Aubrey Lee Clamon, that Pantalion's check was being returned for insufficient funds and that the amount of the check would be debited against Livingston's account when the check arrived back at Hull Bank. At some time after 3:00 p.m., Clamon telephoned Pantalion, who stated he would cover the check with a wire transferthe following day. Clamon called Hull Bank and informed them that the check would be covered by means of a wire transfer for the account of Livingston.
On Wednesday, September 22, 1993, Taylor received a telephone call from "Nancy," who identified herself as an employee in the wire transfer department of NationsBank of Houston. This person stated NationsBank had received an incoming wire transfer from the Bank of Santa Fe from Pantalion for the account of Hull Bank and for the further account of Livingston. She informed Taylor of the amount of the wire, that it was from Pantalion through the Bank of Santa Fe for Hull State Bank for the credit of Livingston Livestock, and she "more than likely" gave Taylor the sequence number of the wire, but