Century Bank v. St. Paul Fire & Marine Insurance

Opinion

BURKE, J.

Plaintiff bank recovered judgment upon an indemnity bond

issued to it by defendant insurance company, which appeals. As hereinafter appears, we have concluded that the trial court correctly ruled that a document upon which plaintiff relied in making a loan fell within the bond’s coverage with respect to counterfeited or forged instruments, and that the judgment should be affirmed.

Security for a loan of $200,000 made by plaintiff was a document entitled “Treaty of Reinsurance,” assertedly issued by Manhattan Casualty Company and purportedly guaranteeing the loan in the event of…