Supreme Court of Iowa October 18, 1978, 2-61248 (First Federal State Bank v. Town of Malvern)

ALLBEE, Justice.

This is a contest between the surety of a contractor who defaulted in the performance of a public construction project and the bank to which the contractor assigned its contract rights. The prize is a fund consisting of the remainder of progress payments which the contractor had earned but had not received and certain retained percentages.

The parties have stipulated to the facts.