United States Fidelity & Guaranty Co. v. Felder

Citations

• 105 Miss. 283
• 62 So. 236

Syllabus

<p>1. INsukaNce. Surety companies. Right' to recover premiums. Discharge of sureties.. Code 1906, sections 121-634. Receivers. Bonds.</p> <p>Where a surety company as provided under Code 1906, section 121 made bond for the assignee receiver of a bank, in consideration of the payment by such receiver of an annual premium and the first premium was paid, but before the second premium became due, the chancery court in which the matter was pending on the ex parte petition of the receiver entered an order authorizing the substitution of a second bond for the first, and discharging the surety company from future liability on the first bond, this did not relieve the receiver from the payment of the second premium since the court had no power to enter such order.</p> <p>2. Same.</p> <p>The power to release sureties is purely statutory, and the reasons for such discharge prescribed by the statute must be shown to have existed when the power is exercised.</p> <p>3. Same.</p> <p>The only provision of law empowering the chancery court to require its receivers to give a new bond, being section 634, Code 1906, in the cases where it is alleged that the security on a receiver’s bond “is insufficient,” the court cannot, during a receivership, although the receiver has partly administered and distributed the assets, order a smaller bond to be taken, and discharge the sureties on the original bond.</p>