American Surety Co. v. Peyton

Defendant appeals from a judgment, admitting liability for principal but denying liability for interest.

Plaintiff sues as subrogee of the state of Minnesota for a deposit balance to the latter’s credit November 15, 1926, in the Marietta State Bank, which on that date was found insolvent and taken over for liquidation by the commissioner of banks. Plaintiff had given bond to secure the deposit, and December 9, 1926, paid in discharge of its liability $9,962.87 with interest at three per cent to November 15, 1926, and at six per cent from then to the date of payment.

The involved transactions…