State Camp of Penna. of Patriotic Sons of America v. Kelley

Citations

• 267 Pa. 49
• 110 A. 339
• 1920 Pa. LEXIS 808

Syllabus

<p>Corporations— Officers — Treasurer — Bonds —Principal and, surety — Discharge of sureties — Voluntary associations — Effect of incorporation.</p> <p>1. A bond for the faithful performance of a treasurer’s duty during his present and any subsequent terms to which he may be elected is valid as long as he holds the office.</p> <p>2. If the bond was given to an incorporated beneficial society, by the treasurer of an unincorporated branch or camp of the association, the subsequent incorporation of the camp will not relieve the sureties on the bond, where it appears that the incorporated camp was identical in name with the unincorporated body; that it was in fact the same body, with the same officers; that there was no change in the duties of the treasurer, who continued to hold the valuable papers of the association, including the bond; that the bond embraced all subsequent terms of the treasurer; and was conditioned for the faithful performance of all “the duties now required, or which may hereafter be required of him as treasurer aforesaid.” The subsequent incorporation was not material to the risk, and, being immaterial, would not release the sureties.</p> <p>3. In such case, the delivery of the bond to, and its acceptance by, the local camp was sufficient; and averments that the conditions of the bond had been complied with, and that there was no money due thereon, are sufficiently met by an admitted default and bankruptcy of the treasurer.</p> <p>4. It requires a material change in the duties and responsibilities of an officer or employee to discharge the sureties on his bond.</p> <p>5. A contract of suretyship, though only enforced according to its strict terms, is nevertheless nothing more than a contract, and must be construed according to the intention of the parties.</p> <p>Judgment — Proceedings to open judgment — Pleadings—Principal and surety — Equity—Technical defense — Release of sureties— Subsequent incorporation of voluntary association — Treasurer’s