Hartford School District No. 94 v. Commercial National Bank

The question for decision is whether a school district is liable for payment of interest from maturity on certificates of indebtedness issued under the provisions of Act 63 of 1935.

Appellant, School District No. 94 of Sebastian county, in 1934, had become heavily indebted with outstanding bonds in the principal sum of $95,500, bearing interest at the rate of five per cent, per annum, on which it was in default both as to principal and interest. The district made a contract with a bond house to refund its principal indebtedness into a like amount of bonds bearing interest at the rate of four…