City of Louisville Municipal Housing Commission v. Public Housing Administration

COMBS, Justice.

Section 177 of the Constitution of Kentucky prohibits the Commonwealth from becoming an owner or stockholder in “any company, association or corporation”. Section 179 prohibits any county or subdivision thereof, city, town or incorporated district from becoming “a stockholder in any company, association or corporation”.

The question on this appeal is whether the City of Louisville Municipal 'Housing Corn- mission may, in view of these two sections of the Constitution, insure its housing projects in a mutual fire insurance company. The case was filed under 637 of the Civil Code…