Hughson v. Crane

Citations

• 115 Cal. 404
• 47 P. 120
• 1896 Cal. LEXIS 1024

Syllabus

<p>Irrigation District—Power of Board to Dispose of Bonds—Purchase of Property—Sale in Market—Debts not Payable in Bonds— Construction Fund.—The only mode in which the board of directors of an irrigation district can exercise their power of disposing of the bonds of the district, under the provisions of the irrigation act, so that they may become valid obligations against the district, is either to exchange them for property purchased for construction purposes, at their par value, under section 12 of the act, or to sell them for money in the open market, under the provisions of section 16 of the act, at not less than ninety per cent of their face value; and they have no power or right to exchange the bonds for any other purpose, or to make payment with them at ninety per cent of their face value, in discharge of any obligation of the district, or to dispose of the bonds, or of the moneys received from sales of the bonds, for any other object than to provide for the construction fund contemplated by the act.</p> <p>Id.—Object of Irrigation Act — Money Basis.—The irrigation act is framed upon the theory and with the intention on the part of the legislature that the affairs of the district shall be conducted upon a money basis, and not on credit.</p> <p>Id.—History of Irrigation District Bonds—Judicial Notice.—The court can take judicial knowledge of the financial history of irrigation district bonds.</p> <p>Id.—Power of Assessment for Interest—Discretion.—The power of the board, in levying an assessment to pay interest on the bonds, is not limited to the exact amount of the annual interest; but they have a-discretion in determining how great an assessment will be sufficient to raise the annual interest, and, unless it can be seen that they have abused this discretion, courts ought not to interfere with their action.</p> <p>Id.—Excessive Assessment—Injunction.—1£ the disparity between the amount of the assessment and the annual interest is so great as to make it appear