State Ex Rel. Freeling v. Howard

Citations

• 171 P. 41
• 67 Okla. 296
• 1918 OK 93
• 1918 Okla. LEXIS 261

Syllabus

<p>(Syllabus.)</p> <p>1. Constitutional Law — Impairment of Obligation of Contracts — Bond.</p> <p>Chapter 89, Laws 1910-11, created the public building fund, to be composed of the proceeds of the sale and rentals of section 33, and lands granted to the state in lieu ¡hereof for charitable .and penal institutions and public buildings, and authorized the issuance and sale of $3.000.000' bonds, which should be payable out of said fund, and pledged the faith of the state to safely keep and preserve the proceeds of such sale and rentals, and apply same to the payment of the bonds authorized by that act, and to no other purpose or purposes. Bonds were issued and sold to the amount of $2,451,000, of which there have since matured and been paid bonds in the amount of $447,500. In 1917 the Legislature made certain appropriations for public buildings payable out of surplus moneys in the public building fund. Held, that so long as the appropriations did not exceed the amount that would be due on the amount of bonds authorized but not issued, with the interest that would accrue thereon, the conditions of the contract of the state with the holders of outstanding bonds would not be impaired.</p> <p>2- Statutes — Coinstruction—Subsequent Legislation.</p> <p>Subsequent legislative enactment may be resorted, to as an aid in the interpretation of prior legislation upon .the same subject.</p> <p>3. States — Trust for Bondholders — Management.</p> <p>The state, as trustee for the bondholders, has the same powers as any other trustee would have under similar circumstances, and is under the obligation to exercise its powers for the conservation of the trust fund and the accomplishment of the 'trust purposes as a prudent man would exercise in the management of his own affairs.</p> <p>Thacker, J., dissenting.</p>