New Amsterdam Casualty Co. v. Albia State Bank

[3] The cause of action for the recovery of school funds wrongfully paid out by the appellee bank was regularly assigned in writing by Monroe County and the officers thereof to the appellant Casualty Company. The appellee bank pleaded negligence on the part of the county and its officers in the issuance of the check to the county auditor and in the failure of the officers to sooner discover the forgery of the endorsement thereon by said county auditor.

Where the rights of innocent third parties are not involved, the quite universal rule of this state is that school funds are the property of…