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Because the maximum 5 per cent interest provision of the Nebraska guaranty law was violated through agreement to pay $1,000 extra, the Supreme court in an opinion by Chief Justice Morrissey finds that the Pioneer Insurance Co. of Lincoln is not entitled to recover from the state guaranty fund any part of the certificate of deposit for that amount which it held against the Atlas State bank of Neligh when that institution failed several years ago.
It was brought out in evidence that the bank, being in urgent need of funds to carry on its business, agreed with W. L. McAllister to pay him $1,000 if he would secure $7,000 cash for it in the form of time deposits. He got the money from the Pioneer Insurance Co. on an agreement to divide his commission with it, half and half. The bank, in this transaction, received only $7,000 net, though it issued certificates of deposit for $8,000, and paid 5 per cent interest thereon.
Before the bank failed, all of the other certificates were paid off. The insurance company had paid McAllister $500 for his share of the commission and it held the entire $1,000 claim, which is disallowed.
Must Pay Face of Policy.
By issuing a policy for $2,500 and accepting premium payments thereon, covering a building at Omaha, the National Security Insurance Co. was bound to pay the full amount to Eunice Fadanelli, the owner, when the structure burned down, and does not have the option of replacing it at less cost.
This is the holding of the superior bench in applying the provisions of the valued policy law. It holds that this law (section 7,809) takes precedence over section 7,836, which prescribes the general form of fire insurance policies, and that the company cannot evade its specific liability by reliance upon the latter section.
Guaranty Fund Decisions.
O. D. Tibbetts of Table Rock must forfeit $3,500 which he had deposited in the Community State bank of that place at the time of its failure several years ago, because he was the beneficiary of an agreement for the illegal payment of interest higher than 5 per cent. The district court decision denying his claim is sustained.
In four cases from Holt county, including the Burgess, Lovell, Pomeroy and Wheeler claims against the defunct Farmers' State bank of Allen, the high bench affirms district court judgments in favor of the claimants.
These are included in a list of 8 civil suits and 9 criminal appeals which were affirmed without opinion. The civil affirmances also include these:
Lancaster—James A. Hayward vs. Northwestern railroad; judgment for plaintiff. This decision awards Hayward, a telegraph operator, pay for time when he was suspended during an investigation by the railroad company.
Arthur—E. P. Myers vs. H. N. Yarnall; judgment for plaintiff.
Butler—St. ex rel Davis vs. Octavia State bank and receiver; judgment for Union State bank of Harvard, as intervener, against defendants.
Veterinary Exam.—The state veterinary examining board is conducting the regular semi-annual quiz for applicants who desire to enter that profession. Three candidates for certificates are taking the two days' questionnaire at the capitol.
