Telfer v. Davis

The claim made by the plaintiffs is not based on subrogation. The plaintiffs claim that at the instant the bond of indemnity was signed and delivered, the Citizens Bank became liable to the sureties and so the sureties became creditors of the bank in the amount of the sum named in the bond, subject of course to the contingency that if the bank should perform the conditions of the bond, no claim could be asserted. Counsel contend this state is committed to the rule that an implied contract of indemnity arises upon the signing of the bond and not as of the time of payment. Maryland Casualty Co.…