Town of Middleport v. Ætna Life Insurance

Citations

• 82 Ill. 562

Syllabus

<p>Municipal bonds—void if issued without authority. Whoever deals iu municipal bonds must be presumed to know what powers the corporation have, under the enabling laws of the State, to issue the securities in which they are making investments. Such authority, if any exists, is to be found *n Puhlic laws equally accessible to all, and if bonds are issued without auy authority in the officer issuing them, they are void, even in the hands of purchasers who have paid full value for them.</p> <p>2. Where a law authorizes the donation of money by a municipal corporation, to aid in the construction of a railroad, and provides for levying a tax to raise the amount to he donated, the officers of the corporation can not adopt any other mode of paying the same, and bonds issued by them for the purpose of paying such indebtedness are void.</p> <p>3. Municipal indebtedness—by whom to be- created. Under an act of the legislature authorizing the “ authorities of any township” to levy and collect a tax with which to meet and liquidate aids voted to a railroad, or to borrow money and issue bonds therefor, for the purpose of paying the amount so voted, the supervisor and clerk of a township have no power to borrow money and issue bonds therefor; that can only he done by a vote of the people of the township whose property is to be affected by the burden imposed.</p> <p>4. Municipal subscriptions—voted prior to constitution of 1870. Donations and subscriptions in aid of railroads, voted by municipal corporations under then existing law's prior to the adoption of the constitution of 1870, are within the saving clause of that article which inhibits all municipal subscriptions or donations to railroad or other private corporations, and may still he paid.</p> <p>5. But the obligations assumed by municipal corporations under then existing laws, prior to the adoption of the constitution of 1870, can not, since its adoption, he enlarged or materially changed, either by the action of the peop