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RIGHT OF SURETY TO PROTECT SELF BEFORE COURT Sanders County Bank Receiver Appeals From District Tribunal. Helena. June bank director who goes security in behalf of his bank for county deposits may in turn protect himself with collateral from the bank. is question to be determined by the Montana supreme court. The district court for Sanders county says the proceeding is regular. S. Ainsworth, as receiver of the defunct Farmers and Merchants State bank of Plains, sued John R. Kruger, former director, to recover certain securities and clear the bank's title to the proceeds of others. Kruger went on the bank's bond to the county in 1922 for $20,000 but, before doing so, demanded that the bank give him security for his own protection. This was authorized by the board. In 1923 he again demanded security for acting as surety and retained the collateral issued to him the year previous. Afterward, the bank failed and the district court has held him liable on his surety. He claims reimbursement from the collateral issued from the bank and the former receiver sold or collected part of the amount and placed it to Kruger's credit. The present receiver. Ainsworth, declares Kruger "unlawfully and fradulently' took possession without paying any consideration for the property. He sought to recover and, losing in the district court, appealed to the supreme court.