City of Mitchell v. Smith

Citations

• 12 S.D. 241
• 80 N.W. 1077
• 1899 S.D. LEXIS 107

Syllabus

<p>Act Cong. July 30, 1886, (24 Stat. 170), prohibits a municipal corporation in a territory from becoming- indebted to an amount exceeding 4 per cent of the value of its taxable property, and renders obligations created in excess of such amount void, but declares that it shall not affect debts previously contracted by virtue of acts of the territorial legislature, Held, that where a territorial city contracted for the construction of waterworks prior to such act, and issued bonds for the indebtedness incurred thereby subsequent thereto, the city auditor could not refuse to deliver refunding bonds therefor on the ground that the bonds previously issued were invalid, since such bonds did not create a new indebtedness of the city.</p>