State Mutual Rodded Fire Insurance v. Foster

In June, 1928, the State Savings Bank of Peck, Michigan, as principal, and the defendants as sureties executed a bond in favor of plaintiff company, the condition of which was that if the bank would keep, account for and pay over on demand all moneys that might be deposited in said bank by the plaintiff, then the obligation would become void.

October 26, 1932, plaintiff deposited in said bank the sum of $1,500 and received the bank’s certificate of deposit payable upon demand. On June 5, 1933, while the bank was in the custody of the State banking department under the provisions of the…