Thomas v. County of Morgan

Citations

• 39 Ill. 496

Syllabus

<p>1. Delivery of county bonds upon condition—upon whom, the condition is binding. Where the bonds of a county, issued upon a subscription of the county to the stock of a railroad company, were delivered to the bankers of the company, upon an understanding, prior to their being issued, between the members of the County Court who issued the bonds and the president of the company, that they were to be applied in payment for work done upon the road in that county, and not otherwise, such understanding is binding upon all persons affectecL with notice of what it was, and, as to such persons, the bonds could be applied to no other purpose than that indicated.</p> <p>3. Whether the deposit of the bonds with the banker of the company was with or without any notice or condition, was immaterial. No matter how absolute the delivery may have been in form, it was nevertheless a qualified delivery, and subject to the understanding between the county and the president of the company, as against all persons chargeable with notice.</p> <p>3. Same—in what form the agreement may be had. It is not essential to the binding force of such an understanding that it should be embraced in a formal contract. In this case the County Court, as a condition precedent -to the issuing of the bonds, required a stipulation as to the manner of their application, and the president of the company thereupon filed in the office of the clerk of that court his certificate, stating that the road in that county was under contract, and that in this contract it was provided that the bonds should be used for work in that county, and not elsewhere. This was treated by all parties ás furnishing the requisite security that the bonds would only be used for that purpose, and thereupon they were ordered to be issued. This certificate was regarded as a part of the transaction, and, viewed in the light of surrounding circumstances, showed a clear understanding as to the use which should bo made of the bonds.</p> <p>4. S