American Bonding Co. v. Spokane Building & Loan Soc.

Citations

• 130 F. 737
• 65 C.C.A. 121
• 1904 U.S. App. LEXIS 4212

Syllabus

<p>1. Fidelity Insurance — Warranties — Breach—Corporations—Knowledge of Officers.</p> <p>Under 1 Ballinger’s Ann. Codes & St. § 4255, providing that all corporate management shall be vested in a board of trustees, where an application for fidelity insurance by a building and loan association stated that the secretary insured derived his authority from the board of trustees, knowledge on the part of a single officer, trustee, or the president of the association that the secretary was indebted to it at the time the policy was issued could not be imputed to the corporation without proof'that the officer’s knowledge had been communicated to the board, so as to constitute a breach of a warranty in the policy that the secretary was not indebted to the association at the time of the issuance thereof.</p> <p>2. Same — False Statements — Knowledge.</p> <p>Where a fidelity bond securing a building and loan association against the embezzlement of its secretary provided that all the representations made by the employer to the surety were warranted by the employer to be true; that the employs had not, to the knowledge of the employer or its officers, been in arrears or a defaulter, and the association stated that its secretary was not at that time in debt to it; that he had property, funds, securities, and valuables on hand to balance his accounts — such statement did not constitute a warranty that the secretary was not indebted to the association at the time as a fact, but only that he was not so indebted, etc., to the knowledge of the association or its officers.</p> <p>li 1. Fidelity insurance, see note to American Credit Indemnity Co. v. Wood, 19 C. C. A. 273.</p>