United States Supreme Court Cases & Opinions

U.S. Supreme Court

United States ex rel. Wilhelm v. Chain, 300 U.S. 31 (1937)

United States ex rel. Wilhelm v. Chain

No. 335

Argued January 8, 1937

Decided February 1, 1937

300 U.S. 31

Syllabus

1. A bond, with sureties, given by a national bank pursuant to the bankruptcy law and orders, to induce the appointment of the bank as a designated depository of bankruptcy funds, is not a mere offer, like a continuing guaranty of future performances revocable until something is done under it, but is a contract given upon present, adequate, and indivisible consideration -- i.e., the designation of the bank as depository -- which becomes binding when delivered to and approved by the bankruptcy court. P. 300 U. S. 32.

2. The obligation of a surety on such a bond, in the absence of any stipulation to the contrary, survives his death, and binds his personal representative for defaults committed by the depository after the death in respect of deposits made after the death. P. 300 U. S. 34.

84 F.2d 138 reversed; District Court affirmed.

Certiorari, 299 U.S. 531, to review the reversal of a judgment recovered by a Trustee in Bankruptcy against the executrix of a deceased surety on the bond given by the bank as a depository of funds of bankrupt estates.