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AMERICAN SURETY CO. v. FIRST NAT. BANK

No. 5191.

141 F.2d 411 (1944)

AMERICAN SURETY CO. OF NEW YORK v. FIRST NAT. BANK IN WEST UNION, W. VA.

Circuit Court of Appeals, Fourth Circuit.

March 9, 1944.

Attorney(s) appearing for the Case

Walter Higgins, of New York City (Robert R. Wilson, of Clarksburg, W. Va., and Royal F. Shepard, of New York City, on the brief), for appellant.

Samuel A. Powell, of Harrisville, W.Va., for appellee.

Before PARKER and DOBIE, Circuit Judges, and WYCHE, District Judge.

PARKER, Circuit Judge.

This is an appeal from a judgment for defendant in an action instituted against a bank to recover on account of loss of funds of a bankrupt estate misappropriated by a trustee in bankruptcy. Plaintiff is the surety on the trustee's bond and holds by assignment all rights of the bankrupt estate as against the bank. The bank, which was not a designated depository of bankruptcy funds, allowed the trustee to deposit to his individual account certain...

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