Platt v. Hitchcock County

Citations

• 139 F. 929
• 71 C.C.A. 649
• 1905 U.S. App. LEXIS 3921

Syllabus

<p>1. Municipal Bonds — Interest Paid Many Years — Validity.</p> <p>Where innocent persons are induced to invest their money in the bonds or obligations of a municipality or quasi municipality, by the authorized recitals of its officers and by the commercial credit given to them by the payment of interest thereon for many years, they should be sustained, unless some insuperable legal obstacle prevents this course.</p> <p>[Ed. Note. — For eases in point, see vol. 36, Cent. Dig. Municipal Corporations, §§ 1982, 1985.</p> <p>Bona fide purchasers of municipal bonds, see note to Pickens Tp. v. Post, 41 C. O. A. 6.]</p> <p>2. Same — Recitals—Estoppel.</p> <p>The recitals of the officers of a municipal or quasi municipal corporation, who are invested with the power to perform a precedent condition to the issue of negotiable bonds and with authority to determine when that condition has been performed, that they have been issued in pursuance of the Constitution or statute which authorizes their issue, precludes inquiry, as against an innocent purchaser for value, as to whether or not the precedent condition challenged had been performed before the bonds were issued.</p> <p>3. Same.</p> <p>Where, under any state of facts or circumstances which might have existed, or which the board or officers who issued the bonds and made the recital might have caused lawfully to exist, the bonds could have legally issued, a recital therein that they have been issued under authority of or in conformity to the law estops the municipality or quasi municipality) as against an innocent purchaser of the bonds for value, from asserting their falsity to defeat them.</p> <p>4. Same.</p> <p>A municipality, quasi municipality, or corporation, and its officers, who by the appearance and recital of the regularity of the issue of its bonds or obligations induces innocent purchasers to invest in them, is estopped from denying their apparent validity upon the ground that in the proceedings preliminary to t