State v. American Surety Co.

Taylor, C.

In June, 1924, the Braham State Bank as principal and defendant as surety executed to the state a bond in the sum of $5,000, and was duly designated as a depository of state funds to an amount not exceeding $5,000. In March, 1925, the bank, by an instrument in writing, assigned to the state state rural credit bonds of the admitted value of $5,000, “as collateral for the repayment of such state funds as may be deposited in said bank from time to time,” and thereupon was designated as a depository of state funds to an amount not exceeding $10,000. The bank became insolvent, and in…