On June 15th, the Fifth Circuit affirmed the entry of summary judgment allowing plaintiff Peoples State Bank to recover on its Financial Institution Bond issued by Progressive Casualty. Peoples sought recovery for losses caused by the fraudulent collateral (forged mortgage documents), it accepted from a third party. Fifth Circuit holds that the Bond only required Peoples to rely on the collateral and to possess the documents in question. Since Peoples did and had both, the loss was covered. Peoples State Bank v. Progressive Casualty Insurance Co. (Unpublished).