South Philadelphia State Bank ex rel. Secretary of Banking v. National Surety Co.

Lewis, J.,

-The Secretary of Banking of Pennsylvania took possession of the South Philadelphia State Bank on Sept. 6, 1924, the bank being insolvent, due mainly, as it appears, to dishonest acts of employees. The Secretary of Banking proceeded to wind up the affairs of the bank. Among its assets was a bond of the defendant surety company indemnifying the bank against direct loss of money or property through dishonest acts of employees, the principal sum of this bond being $50,000. The instrument was executed on or about Aug. 31, 1920, and was annually renewed thereafter, so that it was duly in…