| N.Y. App. Div. | Nov 16, 1936
In an action to recover against the surety on the bond of the committee of an incompetent person, it appeared that the committee had made certain improper and illegal payments out of the estate in 1931. The original surety was the National Surety Company, which was taken over by the Superintendent of Insurance, as rehabilitator, on April 29, 1933. This defendant was organized as a separate corporation and made an agreement with the Superintendent of Insurance that it would take over the assets of the old company, and, among other things, would assume liability on fiduciary court bonds for “ all losses occurring on and after the 1st day of May, 1933, and all losses as to which no notice was received by the Old Company prior to Midnight of April 30th, 1933.” It thereafter filed with the court an assumption certificate limiting its liability as provided in the agreement. The plaintiff sued, claiming that the loss was not