M. B. A. F. B. Federal Credit Union v. Cumis Insurance Society, Inc.

This is an appeal by Cumis Insurance Society, Inc., defendant below, from a judgment rendered against it in favor of. Myrtle Beach Air Force Base Federal Credit Union (Credit Union) for $242,080.75 on a bond which covered, among other things, loss to the Credit Union through the failure of one of its employees “to well and faithfully perform his duties.”

The Credit Union was created under the provisions of the Federal Credit Union Act, 12 U.S.C. §§ 1751 et seq. It is governed by a Board of Directors; however, approval of loan applications was vested in a three member Credit Committee, pursuant…