First National Bank v. Hartford Accident & Indemnity Co.

LARSON, Justice.

The First National Bank sustained a loss in its dealings with a customer named Charles Gerhart. The bank, claiming the loss was covered by a blanket bond, brought suit against the Hartford Accident and Indemnity Company. The trial court ruled that the loss was not covered by the terms of the bond and, in any event, the bank had failed to show it had relied upon the document in question when it entered into the loan transaction. We affirm the trial court.

On May 1, 1972, Gerhart, a contractor, obtained a $40,000 loan from the bank and secured it with equipment and an account…