Drexel State Bank v. City of La Moure

Citations

• 207 F. 702
• 1913 U.S. Dist. LEXIS 1346

Syllabus

<p>1. Municipal Corporations; (§ 901*)—Improvement Warrants—Interest.</p> <p>Rev. Codes N. D. 1905,' § 2786, provides that' special assessments levied for sewers, street paving, and water mains shall constitute a fund for the payment of the cost of the improvement; that, in anticipation of the levy and collection of such assessments, the city may issue warrants on such funds, payable at specified times, which warrants shall .bear interest at not to exceed’ 7 per cent, per annum, and may have coupons attached representing each year’s interest. Section 6564 provides that the detriment caused by the breach of an obligation .to payi money only is deemed to he the amount due by the terms of the obligation with interest; and section 5510 provides thatl interest for any legal indebtedness shall he 7 per cent, unless a different rate is contracted for, and that all contracts shall bear the same rate of interest after they become, due as before, unless it clearly appears therefrom that such was not the intention. Held, that warrants on special assessment funds and interest coupons attached thereto draw interest from maturity and, if no rate is’ named in the instruments themselves, at the rate of 7 per cent.; there being no statute making sections 5510 and 6564 inapplicable to such warrants.</p> <p>[Ed. Note.—For other cases, see Municipal Corporations, Cent. Dig. § 1886; Dec. Dig. § 901.*]</p> <p>2. Municipal Corporations (§ 901*)—Improvement Warrants—Interest.</p> <p>Under Rev. Codes N. D. 1905, § 2786, authorizing the issuance of warrants on special assessment funds in anticipation of the levy and collection thereof, and providing that it shall he the duty of the city treasurer to pay such warrants and, coupons as they mature and are presented /for payment, out of the funds; on which they are drawn, where, at the time of the maturity of the warrants and coupons, there were in the hands of the treasurer of the city moneys belonging to the funds on which they were drawn, whi