Borough of Rainsburg v. Fyan

Citations

• 127 Pa. 74
• 17 A. 678
• 1889 Pa. LEXIS 1083

Syllabus

<p>1. When bonds are issued by a borough to provide for the payment of an existing indebtedness recognized by the corporate authorities as a legal obligation, but the provisions of § 10, article IX. of the constitution, and of § 2, act of April 20, 1874, P. L. 65, are not complied with, the bonds are issued without authority and are void.</p> <p>2. If, however, the debt is a lawful one, and the money borrowed is applied to an existing valid indebtedness, thus merely exchanging one creditor for another, the borough is liable for the money and recovery may be had against it on a count upon the simple contract for money loaned.</p>