Town of Lexington v. Union National Bank
Mississippi Supreme Court
Feom the circuit court of Holmes county. HoN. W. F. SteveNS, Judge. The facts are sufficiently stated in the opinion of the court. If in the pursuit of the history of these bonds it should be ascertained that such bonds were not authorized by or were not in conformity with the statute under which they purport to have been issued, they are illegal in the hands of every person, whether a Iona fide holder or not.
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Feom the circuit court of Holmes county. HoN. W. F. SteveNS, Judge. The facts are sufficiently stated in the opinion of the court. If in the pursuit of the history of these bonds it should be ascertained that such bonds were not authorized by or were not in conformity with the statute under which they purport to have been issued, they are illegal in the hands of every person, whether a Iona fide holder or not. The investor would be supposed to know that without legislative authority municipal corporations cannot invest its obligations with the character and incidents of commercial paper.…
1Opinion of the Court
Calhoon, Special J.,
delivered the opinion of the court.
Under an act approved April 15, 1878, incorporating the West & East Railroad Company (Acts 1873, p. 479, secs. 19-*821), Lexington, by authority of the legal number of her qualified. voters at an election, issued bonds to aid building the road, with coupons bearing 7 per cent, per annum, interest payable semiannually. The bonds were payable in five years, one-fifth each year on May 1, and were in denominations of $50, and were payable to bearer, and were delivered to the West & East Railroad Company. The railroad was built, but Lexington…
2Cited by7 opinions
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- St. Lawrence Tp. v. FurmanCourt of Appeals for the Eighth Circuit · 1909
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