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STATE v. KUIPERS CONSTRUCTION COMPANY

No. 10756.

190 N.W.2d 769 (1971)

STATE of South Dakota For the Use of FARMERS STATE BANK OF PARKSTON, Plaintiff, v. KUIPERS CONSTRUCTION COMPANY, a South Dakota Corporation, Defendant, Hartford Accident and Indemnity Co., a Connecticut Corporation, Defendant and Appellant, and United States of America, Intervenor and Respondent.

Supreme Court of South Dakota.

October 13, 1971.

Attorney(s) appearing for the Case

Woods, Fuller, Shultz & Smith, and F. M. Smith, Sioux Falls, for defendant and appellant.

William F. Clayton, U. S. Atty., David R. Gienapp, Asst. U. S. Atty., Sioux Falls, for intervenor and respondent.

WOLLMAN, Judge (on reassignment).

The question raised in this appeal is whether one who lends money to a contractor who uses the funds to complete a public improvement contract is entitled to recover on the contractor's performance bond required under the provisions of SD CL 5-21.

In May of 1962 Kuipers Construction Company (Kuipers) opened a checking account in the Farmers State Bank of Parkston, South Dakota (Bank) and established a line of credit with the...

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