Sherman County v. Simons

Citations

• 109 U.S. 735
• 3 S. Ct. 502
• 27 L. Ed. 1093
• 1884 U.S. LEXIS 1749

Syllabus

<p>Estoppel — Municipal Bonds — Municipal Corporations — Nebraska.</p> <p>1. A bona fide holder'for value before maturity of a bond issued by a county is not bound to go behind the recitals in the bond to inquire whether the amount of the indebtedness of the corporation exceeds that authorized by law.</p> <p>2. When a statute directs an officer to examine and determine the amount of the indebtedness of a county, for the purpose of further determining the amount of bonds to be issued by the county for a given purpose, and the officer performs the duty, the county cannot, in a suit by a holder of a bond issued as a result of the exercise of the power by the officerj set up ' that the finding was not true.</p> <p>3. When the legislature of Nebraska authorized a county which was indebted to is?ue bonds for the amount of the indebtedness, that act was no infringement of the provision in the State Constitution then in force that, “ the legislature shall pass no special act conferring corporate powers.” The case of Commissioners of Jefferson County v. The People, 5 Neb. 127, followed.</p> <p>4. The issuing of bonds under such authority was no violation of the provision in the present Constitution of Nebraska, that the legislature shall not pass any local or special laws “ granting to any corporation, association or individual any exclusive privileges, immunities, or franchise whatever. In all other cases where a general law can be made applicable, no special law shall be enacted.” A county is not a corporation within the meaning of this clause. Woods v. Colfax County, 10 Neb. 552, followed.</p>