State v. Spring City

McDonough, justice.

Plaintiff appeals from a decision of the trial court holding certain municipal bonds issued by defendant Spring City to be void and denying any recovery against Spring City or its city officials.

On January 15, 1948, defendant Spring City, a municipal corporation, through defendant city officials, issued a series of bonds with a total face value of $12,000. The State of Utah, plaintiff, through its Commission of Finance, purchased the entire issue for the sum of $13,498.67, representing principal, premium and accrued interest. The bonds were issued to raise funds “for the…