Neodesha National Bank v. Russell

Citations

• 109 Kan. 562
• 200 P. 281
• 1921 Kan. LEXIS 320

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Public Building — Default of Contractor — Bank Loaning Money to Contractor to Pay for Labor and Materials Not Entitled to Subrogation to Rights of Lienholders. A bank loaned money to the contractor of a public building to pay and which was paid for labor and material used in the construction work, and took his notes drawing interest. The notes were not paid. The bank sued the bonding company, surety on the bond given by the contractor to the state conditioned that he should pay all indebtedness for labor or material furnished in the construction, and all claims which might be the basis of liens. Held, that by loaning the money to the contractor the bank acquired no interest in, and is not entitled to be subrogated to the rights of those whose claims, if not paid, might have been the basis for liens.</p>