United States Fidelity & Guaranty Co. v. Standard Acc. Ins.

SOPER, Circuit Judge.

The bill of complaint in this case was filed by the appellants to obtain a decree to set aside the cancellation of a depository bond in the sum of $350,000 issued by the Standard Accident Insurance Company on December 19, 1929, and also to recover from the surety the face amount of the bond. The Federal Mortgage Company, the obli-gee in the bond, was in the business of lending money on mortgages, and of selling mortgage bonds secured in part by the mortgages as collateral. In the course of this business, it had previously executed and delivered to the Central Bank & Trust…