Fulton National Bank v. City of Lancaster

Opinion by

Parker, J.,

This is an action in assumpsit brought to recover the amount of two interest coupons attached to a municipal bond. As the facts are not in dispute, the question involved is a legal one and is whether the plaintiff bank, the holder of these coupons, or the City of Lancaster, defendant, shall bear the loss of interest occasioned by a theft of a bond with coupons attached.

On October 1,1906, the defendant, a city of the third class, issued certain municipal bonds maturing October 1, 1936. Each of the bonds contained the following provision: ‘ ‘ The city of Lancaster reserves…