Bank, Receiver Never Acquired Right To Enforce Crime Bond, 10th Circuit Affirms
Mealey's (November 2, 2016, 11:06 AM EDT) -- DENVER — The 10th Circuit U.S. Court of Appeals on Nov. 1 affirmed a lower federal court’s finding that because coverage never vested before the Federal Deposit Insurance Corp. took over a bankrupt bank, the bank and, consequently, the FDIC never acquired the right to enforce a financial institution crime bond (Federal Deposit Insurance Corporation v. Kansas Bankers Surety Co., No. 15-1390, 10th Cir.; 2016 U.S. App. LEXIS 19622).
(Opinion available. Document #13-161103-020Z.)
In January 2009, Johnson Dairy and its principal filed for bankruptcy. Johnson Dairy...