Pembroke State Bank v. Balboa Insurance

Banke, Judge.

The City of Pembroke contracted with E. S. Miles Construction Co. for the construction of water main extensions in the city. In accordance with his obligation as a public contractor (see Code Ann. § 23-1705 (as amended through Ga. L. 1975, pp. 810, 811)), Miles executed a payment and performance bond for the project, with Balboa Ins. Co. named as surety. On June 4, 1976, after beginning work, Miles obtained a loan of $27,000 from the appellant, Pembroke State Bank, assigning as security the proceeds from its contract with the city. The record does not indicate what disposition…