Shackamaxon Bank v. Yard

Citations

• 143 Pa. 129
• 28 W.N.C. 570
• 22 A. 908
• 1891 Pa. LEXIS 912

Syllabus

<p>[To be reported.]</p> <p>(a) In 1873, the cashier of a state bank subject to the provisions of the act of April 16, 1850, P. L. 477, regulating banks, and to § 15, act of March 29, 1851, P. L. 295, requiring the cashiers of banks in Philadelphia to be elected annually by the directors thereof, gave to the bank an official bond reciting Ms election as cashier and conditioned as follows :</p> <p>(b) That if the said cashier shall “ for and during the time of his employment by the said bank, whether under his present election or under any subsequent election to the said position, or whether under its present organization or charter, or under any renewals or extension thereof, discharge and fulfil the trust thereby reposed in him,” etc.</p> <p>(c) Without formal re-election to his office at any time thereafter, the cashier was continued in Ms employment until 1885, when the bank became insolvent. The surety on the bond died in 1876; and more than one year after the bank had notice of the surety’s death, the cashier began a course of fraudulent conduct in Ms official duties in breach of his said bond:</p> <p>1. In such case, by the enlarging provisions of the condition of the bond, the obligors therein must be held to have undertaken to provide against the necessity for an annual renewal of the bond, and to extend the security afforded by it so as to cover the whole period of the principal’s service as cashier, though without a formal re-election from year to year.</p> <p>2. The facts that the cashier’s bond was not taken by the board of directors in the name of the commonwealth, and approved by the Court of Common Pleas and recorded, as required by § 10, article V,, act of April 16, 1850, and that before the default of the principal, the bank had notice of the surety’s death, will not relieve the surety’s estate from liability:* per Hare, P. J.</p>