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NATIONAL SURETY CORPORATION v. RICE

442 S.W.2d 303 (1969)

NATIONAL SURETY CORPORATION, Appellant, v. R. E. RICE, Appellee.

Court of Appeals of Kentucky.

June 6, 1969.

Attorney(s) appearing for the Case

Armer H. Mahan, Louisville, for appellant.

Joe A. Wallace, Wallace & Webb, Louisville, for appellee.

CULLEN, Commissioner.

National Surety Corporation, as surety on performance bonds of Albro Hall, a building contractor doing business as Highgate Construction Company, sustained a loss of $6,673.85 when Hall went bankrupt. Previously, before writing the bonds, National had obtained from R. E. Rice, a creditor of Hall's, a subordination agreement under which Rice agreed to subordinate, to any claim of National on bonds written for Hall, a $10,000 debt owed Rice by...

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