First Security Savings v. Kansas Bankers Surety Co. v. James L. Gillette, Third Party First Security Bank & Trust v. Kansas Bankers Surety Co.

TIMBERS, Circuit Judge.

First Security Savings (“FSS”) and First Security Bank & Trust (“FSB&T”) appeal from summary judgments entered March 3, 1987 and March 6,1987, respectively, in the District of Nebraska, Warren K. Urbom, District Judge, holding that Kansas Bankers Surety Co. (“KBS”), which had issued both banks a bankers blanket bond and an excess employee dishonesty bond, had valid defenses against coverage for losses sustained by the banks as the result of a dishonest employee. The court held that FSB&T was not covered since the bonds were “discovery” bonds and the bank had…