United Bank & Trust Company of Norman, Oklahoma, an Oklahoma State Banking Corporation v. The Kansas Bankers Surety Company, a Kansas Corporation

JOHN P. MOORE, Circuit Judge.

This appeal arises from a dispute over whether a bankers blanket bond issued by The Kansas Bankers Surety Company (KBS) to United Bank & Trust Company of Norman, Oklahoma, covers a loss suffered by United as a result of its accepting counterfeit securities as collateral. The facts were undisputed, and the parties filed cross-motions for summary judgment. The district court held that the bond covered the loss and entered judgment for $38,000 in favor of United. KBS appeals this ruling. We conclude the district court incorrectly determined United sustained the loss…