First State Bank of Gustine v. New Amsterdam Casualty Co. of New York

HUTCHESON, Circuit Judge.

The suit was on a bank officer’s bond and continuations given by White, its cashier, insuring plaintiff bank against embezzlement, wrongful abstraction, or willful misappropriation of its cash or securities. No written application was made for the bond nor were any oral representations made to obtain it. The defense was fraudulent concealment by the officers of the bank of conduct of White, to wit, misuse of the bank’s funds which unfitted him for a position of trust. The proof was that in October, 1930, before the execution of the obligations sued on, the state bank…