Potters National Bank v. Ohio Township

Citations

• 260 Pa. 104
• 103 A. 605
• 1918 Pa. LEXIS 476

Syllabus

<p>Municipalities — Townships — Road supervisors — Authority to borrow money — Ultra vires — Taxation—Extraordinary emergencies —Burden of proof — Minutes of board — Supplementing minutes by parol evidence — Notice of meeting — Gonstitution, Art. IX, Sec. 10 —Act of June 28,1897, P. L. 19k.</p> <p>1. Aside from the taxing authority conferred upon them by statute, the financial resources of township supervisors are limited and they are without general power to borrow money on the credit of the township. An exception to this limitation, arising from necessity, exists however where, by reason of an extraordinary emergency or condition, such as a destructive flood, roads are rendered impassable and bridges destroyed and the current revenues from taxation are insufficient to defray the unusual expenses necessary for repairs and reconstruction.</p> <p>2. Where the road supervisors of a township had made a tax levy equivalent to ten mills, on each dollar of the valuation of property in the township, being the limit of taxation allowed by the Act of Tune 23, 1897, P. L. 194, but, owing to the fact that roads and bridges were rendered impassable by an extraordinary flood, the funds so provided were insufficient, the supervisors had authority to borrow money on a promissory note to pay for repairing the roads and placing them in passable condition, and in an action on a note given in renewal of the original note, and which fell due at a time when the revenues from taxation were sufficient to pay it, the contention that the action of the board was ultra vires and that the township was not liable was without merit.</p> <p>3. Where in such ease it appeared that the supervisors had not at the time of incurring the indebtedness made provision for an annual tax sufficient to pay interest and principal within thirty years, as provided by Art. IX, Sec. 10, of the Gonstitution, but where it further appeared that, following the emergency, a tax had been levied sufficient to pay the not