City of Winchester v. Winchester Bank

Opinion of the Court by

Clay, Commissioner

Affirming.

This action was instituted by appellee (hereinafter referred to as “Bank”) against appellant (hereinafter referred to as “City”) to recover on two demand notes executed on behalf of the City January 1, 1944. One note was for $3,000 and the other was for $5,000.

The City by answer denied liability on two grounds: (1) the notes were renewals of former notes which were void because constituting debts in excess of the revenues of the City, and (2) the notes were executed by the City’s Mayor without authorization of the City Commission. By way of…