Barnes v. Town of Lacon

Citations

• 84 Ill. 461

Syllabus

<p>1. Municipal subscription—without vote of the people. A vote of the people of a town to subscribe to the capital stock of a railroad company, in the absence of any law authorizing such vote or subscription, is not binding upon the town.</p> <p>2. Same—legalization of void subscription. Where an election for the purpose of voting upon a subscription to a railroad company is held without any authority of law, and in pursuance of a vote at such election a subscription is made by the supervisor of the town without any authority of law, the whole proceeding is void, and the legislature can not, by any subsequent act, legalize the same.</p> <p>3. The legislature has no power to authorize the supervisor and town clerk of a town to create a corporate debt, without the consent of the people, expressed at the polls.</p> <p>4. Municipal bonds—in hands of purchaser for value. If municipal bonds are merely voidable, they may be enforced inthe hands of an innocent purchaser for value, but if they are absolutely void, they can not he enforced either by the original holder or a purchaser for value.</p> <p>5. Same—holder)' bound by recitals. Where a municipal bond contains a recital that it is issued in payment of a subscription made in pursuance of a vote of the people at an election therein specified, and there was no law authorizing such election and subscription, the holder has notice, by such recital, of the illegality of such subscription.</p>