City of Billings v. Massachusetts Bonding & Insurance

The bond here sued upon was conditioned that defendant city treasurer “shall account for and pay over and deliver to the person or officer entitled to receive the same, all moneys or other property that may come into her hands as such city treasurer.” This she has not done. Prima facie, the treasurer and the sureties are liable on the bond. But, since the loss was occasioned by depositing the moneys in a bank which subsequently became insolvent, under the express provisions of Chapter 89, Laws of 1923, she is relieved from liability, “where [the] moneys shall have been deposited in accordance…