Merchants Mutual Bonding Company v. Appalachian Insurance Company

WEBSTER, Circuit Judge.

This is an action in the nature of inter-pleader brought by appellee Merchants Mutual Bonding Company, the surety on the statutory warehouseman’s bond of a bankrupt Iowa grain elevator. The Commodity Credit Corporation (C.C.C.) had dealings in grain with the elevator; this appeal involves a claim on the bond by the C.C.C.’s insurer, appellant Appalachian Insurance Company. The District Court 1 denied the claim, finding that the loss involved was not within the coverage of the warehouseman’s bond.

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The C.C.C. became involved here through its program of producer loans. By…