from the United States District Court for the Northern
District of Mississippi
DAVIS, HAYNES, and COSTA, Circuit Judges.
HAYNES, Circuit Judge
Mississippi statute, Miss. Code Ann. § 81-5-15, requires
bank employees to post fidelity bonds that protect against
"acts of dishonesty." Renasant Bank did not require
its employees to post such bonds. Instead, like most banks
today, it purchased a Financial Institution Bond, which
covers losses caused by employees only when certain criteria
are met ("the Bond"). At issue in this case,
inter alia, is whether the Bond's criteria
improperly limit coverage in light of § 81-5-15's
allegedly broad mandate.
arguendo that the Bond is governed by § 81-5-15, we
conclude that the Bond's terms are enforceable as written
because they are consistent with the statute. We also agree
with the district court's conclusion that Renasant Bank
failed to produce evidence necessary to its
breach-of-contract claim and, therefore, that St. Paul
Insurance Mercury Insurance Co. ("St. Paul
Insurance") is entitled to summary judgment.
Accordingly, we AFFIRM.
Factual and Procedural Background
September 2008, Renasant Bank obtained a Financial
Institution Bond from St. Paul Insurance. Relevant to this
appeal, the Bond covers "[l]oss resulting directly from
. . . [d]ishonest or fraudulent acts committed by an
Employee." When losses result directly or indirectly
from loans, however, the Bond limits coverage to situations
where the employee extending the loan:
(i) acted with the intent to cause the Insured to sustain
such a loss;
(ii) was in collusion with one or more parties to the
(iii) has received, in connection therewith, an improper
if the employee did not receive "an improper financial
benefit, " the Bond covers losses resulting from loans
(i) other persons with whom the Employee was dishonestly or
fraudulently acting in collusion received proceeds from the
Loan . . .; and
(ii) the Insured establishes that the Employee intended to
share or participate in the proceeds of the Loan . . . .
"financial benefit, " the Bond explains, "does
not include any employee benefits earned in the normal course
of employment, including: salaries, commissions, fees,
bonuses, promotions, awards, profit sharing or
2009, Renasant Bank notified St. Paul Insurance of potential
losses resulting from allegedly dishonest or fraudulent
lending activities of a former employee ("the
Employee"). Renasant Bank apparently learned of these
activities upon reviewing certain outstanding loans in late
2007, as the real estate market deteriorated. According to
Renasant Bank, in 2006, the Employee approved two
multi-million dollar real estate development loans ("the
Loans") that she knew were secured by less collateral
(i.e., land acreage) than she initially represented to the
bank in obtaining the bank's authorization for the Loans.
Renasant Bank also claims the Employee ...