The Richland Trust Company v. Federal Insurance Company

Appellant brought this action to recover on a banker’s blanket bond it had secured from appellee insurance company to protect it from a loss by reason of having given value upon “any securities, documents or other written instruments which prove to have been counterfeited or forged as to the signature of any maker . . . . ” Appellant had extended several loans over a three-year period to a road contractor and the corporations he controlled, but the contractor ultimately became insolvent and the bank was forced to write off the loans. When the bank discovered that the loan applications had…