National Surety Co. v. Apache County

Tbe two plaintiffs, surety companies, brought this suit to have determined tbe measure of their liability on two depository bonds, for $10,-000 and $20,000, given by them severally to tbe defendant Apaebe county, Arizona, to cover publie moneys of tbe county deposited and to be deposited by its treasurer in tbe Bank of Winslow. The defendant Jarvis is presently tbe county treasurer, and tbe defendant Hammons, as state superintendent of banks, is tbe ex officio receiver of the bank, which, being insolvent, was elossed on October 4, 1924. Tbe court below sustained a motion to tbe bill, and. dismissed tbe action.

*357 On May 11, 1922, Benjamin Brown, Jr., then the county treasurer, with the consent and approval of the county board of supervisors, duly designated the Winslow Bank as both active and inactive depositary for the county funds, and in order to qualify the bank on the following day caused to be delivered to the county the two bonds in question, which are conceded to be regular in form and valid. Under the state statutes the bank so qualified could lawfully receive a.nd have on general deposit up to, but not exceeding, $30,000 of the county funds.

At a later date, not…