Supreme Court of Kansas March 5, 2010, 95,548 (National Bank of Andover v. Kansas Bankers Surety Co.)

The opinion of the court was delivered by

Nuss, J.:

This appeal arises out of an employee’s unauthorized honoring of insufficient funds checks, which resulted in a loss to

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her employer, National Bank of Andover (bank). The bank had obtained a Financial Institution Crime Bond, which its issuer, Kansas Bankers Surety Company (KBS), then sought to rescind via a declaratory judgment action.