Seaboard Surety Corp. of America v. Hollywood State Bank

The Seaboard Surety Corporation of America had in its possession a certificate of deposit for $20,000 issued by the Security-First National Bank in favor of intervener Brown, properly indorsed by Brown. Its officers brought the certificate to the Hollywood State Bank. The sum was large, and C. A. Adams, vice-president of the bank, as a careful and prudent banker, for the convenience of identifying signatures, agreed to meet them at the Farmers and Merchants Bank, which is located in metropolitan Los Angeles. This they did. The certificate was indorsed by the Seaboard. Adams thereupon handed…