City of Garden City v. Merchants' & Farmers' National Bank

The opinion of the court was delivered by

Johnston, J.:

This was an action by the Merchants’ and Farmers’ National Bank of Danville, New York, to recover from the city of Garden City on interest coupons which had been detached from refunding bonds previously issued by the city. The defense was that the bonds were invalid, because they were issued to take up an indebtedness' incurred for the erection of a mill which was a private enterprise, and also because the officers executing them had no authority to do so. In reply to this defense, the bank, among other things, *346alleged that, in another…