Coke

Defendant Fireman’s Fund American Insurance Companies appeals from a money judgment rendered against it in an action brought by respondent Director of Agriculture in behalf of three milk producers, upon a bond given by appellant as surety that the principal, Santa Clara Creamery, Inc., would pay its milk and cream suppliers minimum prices established by the Director of Agriculture pursuant to the Milk Stabilization Act (Agr. Code, § 4200 et seq. [now § 61801 et seq.]; references herein are to the Agricultural Code prior to its recodification in 1967). In compliance with Agricultural Code section 4376, the bond was “conditioned upon the payment in the manner required hy this chapter, of all amounts due to producers for fluid milk and fluid cream purchased by such licensee or applicant . . .” (Italics added.)

In March and April of 1962 the principal, Santa Clara Creamery, Inc. (hereinafter Creamery), entered into contracts with the three producers for the purchase of certain amounts *442 of milk monthly from each producer at lawful prices. Creamery did in fact purchase the agreed-upon amounts of milk and sent the producers cheeks for the correct minimum prices. But there was also…