Haynes Hardware Co. v. Western Casualty & Surety Co.

*357The opinion of the court was delivered by

Wedell, J.:

This was an action on a bond. Plaintiffs prevailed, and the defendant surety company appeals.

In August, 1938, Charles H. Sharp desired to construct an apartment building on his own lots in the city of Emporia. In order to finance the construction of the building he obtained a loan in the sum of $32,000 from the Eureka Building and Loan Association, which was secured by the Federal Housing Administration. Sharp executed his note in that amount and a mortgage on the lots and apartment to be constructed as security for the loan. The note and…