Burlington Sav. Bank v. City of Clinton

Citations

• 111 F. 439
• 1901 U.S. App. LEXIS 4976

Syllabus

<p>1. Municipal Corporations—Bonds fob, Street Improvements—Iowa Statute.</p> <p>Acts 23d Gen. Assem. Iowa, c. 14, § 6. authorizing- cities to make street improvements, provides that “for the purpose of providing for the payment of the cost and expenses of any sueli improvement the council * * * shall he authorized from time to time as the work progresses, to make requisitions upon the mayor of the city, for the issue of the bonds of the city in such sums as shall be deemed best.” The amount and terms of such bonds are specified, and it is further provided that when any such improvement shall have been completed it shall be the duty of the council to ascertain the entire cost, and what portion may be by law assessable on adjacent property or against any street railway, and to make such assessments; the money collected 1 hereon to be applied to payment of the bonds. There is no requirement that the bonds shall recite that they are payable from any particular fund. IT eld, that bonds issued under such act create an indebtedness of the city, and are affected by the constitutional provision limiting the amount of its indebtedness; recitals in such bonds that they are issued to provide for the cost of a certain improvement, which is assessable against abutting property, and is made a lion thereon, being merely to show the power of the city to issue the same under, the statute, and to provide means for their payment.</p> <p>2. Same — Limitation' of Indebtedness —- Notice to Purchasers of Bonds.</p> <p>Where an issue of bonds under such statute, which were all sold to the same purchaser, in itself exceeded the constitutional limit of the city's indebtedness, the purchaser Is chargeable with notice of such fact, ’ and put upon inquiry as to the amount of its prior indebtedness and the amount of further indebtedness which it could lawfully contract, and is limited in his recovery against the city to such amount.</p> <p>3. Same—Bf.medies of Bondholders.</p> <p>Such bondholder