Lower Yoder Township School District v. Title Trust & Guarantee Co.

Opinion by

Mr. Justice Linn,

The School District of Lower Yoder Township in Cambria County deposited its funds in the Morrellville Deposit Bank of Johnstown, hereafter called the bank. To secure repayment, the bank pledged certain bonds with the Title Trust & Guarantee Company, hereafter called the trust company, pursuant to agreements providing that, in case of default, the bonds would be delivered to the school district with power, after 48 hours’ notice, to sell them and appropriate the proceeds, or so much as was necessary, to indemnify it as specified. Default occurred in March, 1933, when…