The Bank of Arizona, a Corporation v. National Surety Corporation, a Corporation

On this appeal we are called upon to determine the validity of conflicting claims to moneys paid by the Government pursuant to a contract. One claim is founded on an assignment to a surety contained in the application for a contract bond; the other founded on an assignment to a bank, given as consideration for moneys loaned to the contractor. The sequence of events makes their dates assume significance. For convenience parties here involved will be referred to as follows: National Surety Corporation as “Surety”; The Bank of Arizona as “Bank”; Dollar Construction Co., a corporation as “Contractor”; and the United States of America as “Government.”

On June 18, 1952, Contractor entered into a contract with Government (hereafter called “contract”), whereby Contractor agreed to perform work at the Navajo Ordnance Depot, Bellemont, Arizona (hereafter called the “Navajo Job”), in consideration for which Government agreed to pay Contractor $12,-180.00 in a lump sum on completion of the job, this amount being later increased by a “Change Order” to $12,-580.00. In conformity with the requirements of 40 U.S.C.A. § 270a and provisions of the contract, Contractor furnished and Government…