186 Ind. 650 | Ind. | 1917
It appears from an agreed statement of the facts in this case that on January 4, 1913, the Farmers’ and Merchants’ Bank, a corporation organized under the laws of Indiana and then doing a general banking business in the town of Cicero, in Hamilton county, presented its application to the board of finance of Jackson township, in said county, to be made a depository of the public funds belonging to said township under and pursuant to the depository laws of the State of Indiana. The bank was awarded the sum of $6,825 by the board of finance and thereafter tendered its bond in the sum of $6,000, with appellant as surety thereon, which bond was duly accepted and approved by said board. So far as material the provisions of the bond will be considered later. The board of finance thereafter deposited with the Farmers’ and Merchants’ Bank various sums of money belonging to the township and on January 4, 1915, -when its term as depository expired, there was on deposit in said bank of such funds the sum of $2,027.68. On that day the bank was again regularly designated as a public depository for the ensuing two years and was at once duly notified of such designation, but did not at any time file a new bond to cover the new term.
On January 20, 1915, said Farmers’ and Merchants’ Bank became insolvent and ceased to do business, and a . receiver was then appointed by the Hamilton Circuit Court to take charge of its assets and liabilities. At that time the board of finance had on deposit in said bank township funds in the sum of $1,870.14. Proper demands were made on the receiver and on appellant for the payment of this amount but the same were refused and this suit followed. Its object is to recover from appellant, as surety, the amount of money • which was lost to the township through insolvency of
In the case last cited, which involves facts quite similar to those now in issue, the Supreme Court of Florida says, at page 362 of the opinion: “The mere fact that the period contemplated by the bond for making deposits with the bank as the city depository expired before the bank failed, does not relieve the defendant from the obligation of its bond that the bank 'shall faithfully account for and pay over all moneys’ deposited by the. city during the period contemplated, if the bank does not in fact pay. over or the obligation to do so is not otherwise extinguished. The obligation was not merely to insure or secure the payment of warrants drawn by the city on its deposits during the contem
Our conclusions require an affirmance of the judgment below and it is so ordered.
Note. — Reported in 117 N. E. 860. Duration of the liability of the surety on a bond of a depository, Ann. Cas. 1916 B 1247. Liability of a public officer for loss of funds by failure of bank designated as depository, 36 L. R. A. (N. S.) 289. Contracts of sureties, construction, 6 Am. St. 458. See under (2) 13 Cyc 816.