Carter v. City of Dubuque
Supreme Court of Iowa
Appeal from Dubuque District Court. Suit upon a guaranty by defendant of a bond for $500 executed by the Dubuque Central Improvement Company, payable to the city of Dubuque or bearer.
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Appeal from Dubuque District Court. Suit upon a guaranty by defendant of a bond for $500 executed by the Dubuque Central Improvement Company, payable to the city of Dubuque or bearer. The answer sets forth that the execution of the guaranty was beyond the scope of defendant’s powers ; that at the time of executing the guaranty the defendant had reached the constitutional limit of its indebtedness; and that the city had authority to borrow money or pledge its credit only in case a proposition to do so should be adopted by two-thirds of the qualified voters of the city, and that no such…
1Opinion of the CourtDay, J.
I. The city of Dubuque has not the general powers of a natural person. It can exercise such powers only as are expressly conferred, and such others as are incident to a proper exercise of the powers expressly granted.
*417The city charter confers no authority to sell negotiable paper with a guaranty. If such power exists it must attach as an incident to powers specifically granted. The charter renders the city capable in law of contracting and being contracted with. It is claimed that, as this authority is given without limitation, it is broad enough to include the power of executing the guaranty…
2Cited by5 opinions
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- Clark v. City of Des MoinesSupreme Court of Iowa · 1936
- Wheeler v. City of Sault Ste. MarieMichigan Supreme Court · 1911