First National Bank v. Ætna Casualty & Surety Co.

Citations

• 267 Pa. 519
• 110 A. 165
• 1920 Pa. LEXIS 904

Syllabus

<p>Principal and surety — Bond of employee — Change of employment — Bank—Note clerk — Cashier.</p> <p>1. Where a surety company insures a bank against any loss ts the amount of $3,000 resulting from the “dishonesty” or “bad faith” of a note clerk, and this contract continues for five years, when the note clerk is promoted to be the cashier of the bank, and the bond is increased to $20,000, the bank cannot hold the surety company liable on the increased bond for a loss resulting from the employee’s dishonesty while he was note clerk.</p> <p>2. In such case, the fact that the employee during his employment as “cashier” concealed his embezzlement as “note clerk,” by forging notes and placing them with the genuine notes of the bank, will not make tbe surety company liable for tbe amount for which it bonded him as cashier.</p>