Two employees of the state of New Mexico fraudulently procured and indorsed a warrant (a draft drawn against funds of the state) made out to the Greater Mesilla Valley Sanitation District. There was no such sanitation district. The employees obtained payment from Citizens Bank. Western Casualty, the state’s insurer, reimbursed the state for its loss and then brought suit against the bank for negligently paying the warrant. Is the bank liable for its payment? Discuss your answer. [Western Casualty & Surety Co. v Citizens Bank of Las Cruces, 676 F2d 1344 (10th Cir)]