Cotton States Mutual Insurance v. Citizens & Southern National Bank

Deen, Presiding Judge.

Cotton States Mutual Insurance Co. (Cotton States), appellant here, was surety for Georgia-Carolina Railroad Contractors, Inc. (Georgia-Carolina), on a federal government construction project on which Georgia-Carolina was a prime contractor. Periodic progress payments were deposited in two checking accounts which Georgia-Carolina had opened with Citizens and Southern National Bank (C & S), appellee here, some years prior to entering into the contracts relevant to this appeal. Upon Georgia-Carolina’s failure to make the monthly payments due upon two notes representing an…