Board of Levee Commissioners v. Hemingway

Citations

• 66 Miss. 289

Syllabus

<p>1. Corporations : Implied Power. May pay debts before maturity.</p> <p>The hoard of levee commissioners of the Yazoo-Mississippi Delta has the implied power as a corporation to discount and pay before maturity the interest coupons on its bonds.</p> <p>2. Money or Levee Board; not Speciai, Fund or State. Appropriation act of 1884.</p> <p>Under the appropriation act of 1884 the state treasurer, who is also treasurer of the levee board, was not authorized to apply money of the board to state indebtedness. It was not a “special fund,” within the meaning of ^ 2 of the act authorizing the use of money of the general or any special fund in the payment of state warrants.</p> <p>3. Public Orricer : Liability ror Mistake. Gase in judgment.'</p> <p>The board of levee commissioners made the following order in relation to the payment of coupons on its eight per cent, interest bearing bonds : “ If at any time there shall be in the hands of the treasurer of the taxes of 1884, funds available for paying the coupons on the bonds issued by this hoard to August 1, 1885, the president may in his discretion direct the treasurer to pay off such coupons before due, in case the holders thereof will allow a discount on the same satisfactory to the president and treasurer.” The president having arranged with bondholders to anticipate payment of coupons at a discount of eight per cent., notified the treasurer and directed payment of such coupons. The treasurer expressed no dissatisfaction with the rate of discount, but failed to pay the coupons, claiming the right to apply the funds of the levee board in his hands to the payment of state indebtedness. Held, that it was his duty to pay the coupons, and, failing to do so, he became liable to the hoard for the loss sustained in the failure to secure the discount.</p>