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Note: In a dispute over rights to life insurance policies covering a deceased former partner, the Trustee of the deceased, Bonita G. Hilliard, posted a US$250,000 standby LC as security pending appeal from an award of summary judgment in favor of Timothy E. Jacobs (Beneficiary) and against Trustee and to stay delivery of the policies. When the stay was lifted, Beneficiary received the policies, claimed under them, and was paid the insurance proceeds.

Beneficiary also claimed damages under the standby, arguing that had he received the policy proceeds earlier, he would have earned 5% more than the interest rate. On appeal the Court of Appeals of Indiana, Mathias, J. reversed and remanded an order of the trial court awarding interest from the LC on the ground that the higher interest was not available in an action to obtain ownership of an insurance policy as opposed to an action for damages.

[JEB/jdc]

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