Schaick v. Bank of Yorktown

The facts are substantially undisputed. This action relates to two notes, one for $5,000, the other $25,000. On or about the 1st day of December, 1931, the defendant bank arranged to give one Zimels a loan in the sum of $5,000. The note was executed by Zimels, was due April 4, 1932, and a deposit was made in the bank. This1 borrower gave as collateral security a bond furnished by the Lexington Surety and Indemnity Company, which bond was protected by a time deposit made by that company in the defendant bank. The bond is brief and reads as follows:

“ Know dll men by these presents, that we,…