United States Fidelity & Guaranty Co. v. Foster Deposit Bank

Opinion of the Court by

William Rogers Clay, Commissioner —

Reversing.

Appellee, Foster Deposit Bank, was located in the town of Foster, Bracken County, Kentucky. Foster has a population of about 200. The authorized capital of the bank was $15,000. Its actual capital was $11,200. Daniel C. McMath was its cashier. On January 11,1905, he and the bank made a written application to appellant, United States Fidelity and Guaranty Company, to become his surety. On January 20, 1905, appellant executed to the bank a bond, by which it agreed to reimburse the bank for any pecuniary loss it might sustain by…