Pennsylvania Slovak Roman & Greek Catholic Union v. American Surety Co. of New York

WOOLLEY, Circuit Judge.

The Catholic Union had live accounts with the Pennsylvania Liberty Bank and Trust Company, of Wilkes-Barre, Pennsylvania, two checking accounts and three savings accounts; interest on the former being at one rate and interest on the latter at a higher rate. For a long time the Union had, in a way not unusual in rural banking, drawn against all accounts at sight. It held bonds of the bank, with the American Surety Company as surety, ensuring payment of its deposits. These bonds were in force when, on September 11, 1931, the surety company gave five days’ notice, as under…