Gumz v. United States Fidelity & Guaranty Co.

From the allegations of the amended complaint, which, on demurrer, must be taken as true, it appears that the Armory Realty Company was about to execute and deliver to the National Bank of Commerce, as trustee, two trust mortgages covering certain lands to secure the payment of negotiable bonds aggregating the principal sum of $500,000; that the bank had agreed to purchase all of the bonds at the price mentioned on condition that Armory Realty Company as principal, and the defendant as surety, would, for the purpose of inducing the bank so to purchase said negotiable bonds, execute a bond for…