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SOCIAL SEC. v. EMPLOYERS MUT.

[No. 298, September Term, 1963.]

234 Md. 493 (1964)

199 A.2d 918

SOCIAL SECURITY ADMINISTRATION, BALTIMORE FEDERAL CREDIT UNION v. EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY OF WISCONSIN

Court of Appeals of Maryland.

Decided May 1, 1964.

Attorney(s) appearing for the Case

H. Emslie Parks, with whom was Z. Townsend Parks, Jr., on the brief, for the appellant.

Robert L. Karwacki, with whom was John S. Hebb, III, on the brief, for the appellee.

The cause was argued before BRUNE, C.J., and HAMMOND, HORNEY, MARBURY and SYBERT, JJ.

HAMMOND, J., delivered the opinion of the Court.

This appeal must determine whether a corporate insurer under a fidelity or indemnity bond is liable to a defrauded employer for interest on the principal sum embezzled by an employee.

The appellant is a federal credit union. An assistant treasurer, a Miss Mand, perpetrated a series of embezzlements of money belonging to her employer by purportedly making loans to fictitious...

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