The Rock Island Bank v. The Aetna Casualty and Surety Company

WILLIAM J. CAMPBELL, Senior District Judge.

This appeal challenges the district court’s entry of summary judgment for the plaintiff-insured on a blanket bond issued by the defendant-insurance company. The appellant, Aetna Casualty and Surety Company (Aetna) claims that a material issue of fact exists as to whether the acts of William Kearney, a past president of the Rock Island Bank (Rock Island), were dishonest or fraudulent within the meaning of the bond. Kearney had issued letters of credit to Cortland J. Silver in amounts which greatly exceeded his loan authority without consulting the…