Interstate Fire Insurance Company v. J. Ed Sayers

DYER, Circuit Judge:

To accommodate Handleman Fabrics, Inc., in obtaining a loan of $30,000.00 from the Bank of Fulton County, Sayers executed an agreement to indemnify Interstate Fire Insurance Company for any loss it sustained by virtue of its issuing a financial guaranty bond as security for payment of the loan to Handleman. Subsequently Handleman defaulted and Mount Vernon Surety Company, on behalf of Interstate, the insuring company, paid the bank $25,729.16. Under reinsurance agreements between Interstate, Mount Vernon, and Old Reliable Insurance Company, Interstate bore 40 percent of…