The treasurer of a village, acting under the direction of the board of supervisors, deposited the village funds in a certain bank. The village treasurer was the managing officer of this bank. A public official's bond was given to cover his specific term beginning May 5, 1931, and ending May 5, 1932. The bond included a provision exempting the surety from liability for loss by reason of bank failure. A state statute spelled out the obligations of the principal and surety in an official bond without making provisions for any exemptions. At the close of the term of office on May 5, 1932, the annual report of the village treasurer was received, certified by the auditors, and approved by the board of supervisors. The bank failed on August 15, 1932. This action was brought on the official bond of the village treasurer for funds on deposit in the closed bank. Held, the surety is liable for the loss occasioned by the bank failure. One judge dissented. Village of Hampton v. Gausman, (Neb. 1939) 286 N. W. 757.
Michigan Law Review,
PUBLIC OFFICERS - DUTIES AND RESPONSIBILITIES OF CUSTODIANS OF PUBLIC FUNDS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol38/iss8/25