State ex rel. City of Port Townsend v. Clausen

Citations

• 40 Wash. 95
• 82 P. 187
• 1905 Wash. LEXIS 943

Syllabus

<p>Schools — Permanent School Fund — Investment—Propriety or Safety — Determination of State Land Commissioners. The determination of the hoard of state land commissioners as to the propriety and safety in investing the permanent school fund is conclusive on the state auditor and on the courts, when not impeached for had faith or fraud.</p> <p>States — Financial Management — Investment of Permanent School Fund — -Municipal Bonds — Definition-—City Bonds Payable out of Special Fund — Cheated by Receipts of Water Works System — General Credit of City Not Pledged. Bonds issued hy a city under Laws 1901, p. 177, to defray the cost of the construction of waterworks, which are payable only out of a special fund derived from the revenues of the waterworks system, and for which the city is not in any way liable, are not municipal bonds within the meaning of Const., art. 16, § 5, authorizing the investment of the permanent school fund in municipal bonds, as such provision contemplates the protection of the permanent school fund by investment in bonds secured by a pledge of the credit of the municipality.</p>