Bay Special Consolidated School District No. 21 v. Hall

Appellee, a property owner, brought this action against appellant district and its hoard of directors to enjoin them from issuing $20,000 of 4% per cent, bonds of the district to refund $15,000 of 6 per cent, bonds issued in 1928, and $5,000 of new bonds, $1,400 of which would be used to malee repairs to, and purchase equipment for, the school building, and $3,600 of which was to replace money diverted from the general operating funds to the building fund in 1934, which caused a deficit of $3,600 in the amount of the operating funds. The facts are that the district has an indebtedness of…