McGill v. Bank of the United States - 25 U.S. 511 (1827)
U.S. Supreme Court
McGill v. Bank of the United States, 25 U.S. 511 (1827)
McGill v. Bank of the United States
25 U.S. 511
A.W.McG. gave a bond to the Bank of the United States, with sureties, conditioned for the faithful performance of the duties of the office of cashier of one of the offices of discount and deposit during the term he should hold that office. The president and directors of the bank having discovered that he had been guilty of a gross breach of trust, passed a resolution, at Philadelphia on 27 October, 1820, "that A.W.McG., cashier, &c., be, and he is hereby suspended from office, till the further pleasure of the board be known," and another resolution
"That the president of the office at Middletown be authorized and requested to receive into his care, from A.W.McG., the cashier, the cash, bills discounted, books, papers, and other property in said office, and to take such measures for having the duties of cashier discharged, as he may deem expedient."
These resolutions were immediately transmitted by mail to the president of the office at Middletown, who received them on the morning of Sunday, the 29th of the same month, but did not communicate them to the cashier nor carry them into effect until the afternoon of the 30th, between four and five o'clock, held that the sureties continued liable for his defaults until that time.
On such a bond, the recovery against the sureties is limited to the penalty.
Partial payments having been made by the sureties (subject to all questions), the application of these payments was made by deducting them from the penalty of the bond, and allowing interest on the balance thus resulting, from the commencement of the suit, there having been no previous demand of the penalty, or acknowledgement that the whole was due.
But interest was refused to the sureties on the payments.