Massachusetts Bonding & Ins. v. Harrisburg Trust Co.

McLaughlin, circuit judge.

The appellant was surety on a $100,000 depository bond in favor of the Commonwealth of Pennsylvania and covering deposits of the State Treasurer in the appellee bank. The arrangement continued without difficulty fom 1922 to 1932. The advance premium had been $500 a year to and including 1930 when it was increased to $1,000. On October 19, 1932, a cancellation notice was served by the appellant on the Commonwealth of Pennsylvania. On November 21, 1932 the State Treasurer advised the appellee of this. .He said that while the Commonwealth did not concede the right of…