F.D.I.C. v. RLI Insurance Co.

Dist. Ct. did not err in granting plaintiff’s motion for summary judgment in action seeking indemnity from financial institution bond issued by defendant, where said indemnity arose out of plaintiff’s reliance on forged signatures in two leases used to support applications for two loans. Instant bond covered losses resulting directly from reliability on documents that bore forged signatures, and instant leases satisfied “security interest” requirement in indemnity bond. Ct. further rejected defendant’s argument that: (1) plaintiff failed to show that its loss resulted directly from reliance on forged signatures; (2) plaintiff did not possess said leases at time it dispensed funds in reliance on forged signatures; and (3) plaintiff failed to file instant claim within applicable limitations period.