Snattinger v. City of Topeka

Citations

• 80 Kan. 341
• 102 P. 508
• 1909 Kan. LEXIS 70

Syllabus

<p>SYLLABUS BY THE COUKT.</p> <p>Suretyship — Bond of City Depositary — Designation—Repeal and Reenactment of Statutes- — Release of Surety. In chapter 37 of the Laws of 1881, relating to cities of the first class, was a provision authorizing the mayor and council to designate a bank as a depositary of the public funds upon the giving of a bond conditioned that the deposits should be promptly paid upon the checks and drafts of the treasurer. In chapter 34 of the Laws of 1883 this provision was slightly amended, and under it a depositary was designated and the bond in question, which was signed by the defendant, as surety, was given. In 1903 there was a revision of the laws relating to cities of the first class (Laws 1903, ch. 122), and the provision relating to depositaries was reenacted substantially as it had appeared in the prior acts. When the new provision was enacted the section containing the prior provision was repealed. In an action upon the bond, held: (1) The provision relating to depositaries continued uninterruptedly in force notwithstanding the changes in the form of the statutes, and the enactment of the later act did not abrogate the ordinance passed in pursuance of the earlier one. (2)' Where a bank is named as a depositary of city funds and tenders a bond signed by sureties, in which it is recited that the bank has been “duly designated” as a depositary, and then for a number of years the funds of the city are deposited in the bank in reliance upon the bond, and thereafter there is a default in the conditions of the bond, the bank will be deemed to be at least a de facto depositary, and the,sureties on such bond will be held liable although the steps prescribed by law in making the designation . of the depositary may not have been strictly followed. (3) A designation of a bank as a depositary is effectual so long as the city shall continue to deposit its funds in the bank, and the bond given in pursuance of such designation is deemed to be a contin