The law governing the issuing, transfer, and collection of municipal bonds

Front matter

Validity of Municipal Bonds

THE LAW

GOVERNING THE ISSUING, TRANSFER AND COLLECTION OF

Preface To Second Edition

In compliance with the request of the publisher of this work I have prepared a second edition. All decisions of the United States Supreme Court and Circuit Courts of Appeals, involving municipal bonds and enabling statutes, which have been reported since the publication of the first edition, have been carefully digested and the digests have been placed in their appropriate positions in the several chapters of the book. The index has been

carefully revised.

WM. H. HARRIS.

TOLEDO, OHIO, January, 1917.

CHAPTER I. Numbers of

citations.

MUNICIPAL CORPORATIONS AND OTHER PUBLIC BODIES; THEIR CHAR- ACTER, POWERS, AND PURPOSES GENERALLY l-26a

A. Legislative control of public corporate bodies, restricted only

by constitutional provisions ^. 1-9

B. Municipal corporations; powers and functions as State

agencies and local governmental bodies 10-15

C. Counties, townships, school districts, etc.; corporate powers

and character 16-26*

Chapter II. Definition, Nature, And Incidents Of Municipal Bonds, Interest

COUPONS, WARRANTS, ETC 27-65

A. Legal and commercial character of municipal bonds 27-40a

B. Interest coupons; negotiability and other incidents 41-61

1. Interest coupons are negotiable and are independent

causes of action 41-53a

2. Interest coupons bear interest after due, generally at

legal rate where payable 54-61

C. Municipal warrants and other nonnegotiable evidences of

indebtedness 62-65

Chapter III. Purposes For Which Municipal Bonds May Be Lawfully Issued. . 66-95

A. Legitimate public purposes 66-86

J5. Purposes not public 87-95

Chapter IV. Authority Or Power To Issue Municipal Bonds 96-257^

A. Legislative authority necessary; conditions and limitations

may be imposed by legislature 96-138

B. Construction of grants of corporate powers; authority, when

implied ; incidental powers 139-204

1. Construction of grants of corporate powers; rules of con-

struction ; repeal by implication 139-1 78<?

2. Authority to issue municipal bonds when implied; inci-

dental powers 179-204

C. Irregular or wrongful exercise of power distinguished from

absence of authojity; noncompliance with constitutional and statutory conditions and limitations 205-244a

D. Powers of de facto public corporate bodies and officers 245-257

Vi TABLE OF CONTENTS.

Chapter V

MUNICIPAL AND OTHER PUBLIC BOARDS AND OFFICERS; THEIR ACTS, PROCEEDINGS, AND RECORDS RELATING TO THE ISSUANCE OF BONDS 258-313

A. Municipal and other public officers have sucli powers as legis-

lature may confer, and must proceed and act in manner prescribed by the legislature 258-269a

B. Proceedings and records of proceedings of municipal officers

and boards; purchasers of municipal bonds charged with

notice of, when 270-294

C. Other public records and data of which purchasers of munici-

pal bonds must take notice 295-313

Chapter VI. Execution, Delivery, Form, And Contents Of Municipal Bonds?

REGISTRATION, ETC 314-388

A. Municipal bonds must be executed by the officers designated,

in the manner, with the formalities, and within the limitations prescribed by law 314-381

B. Authorized delivery of municipal bonds necessary to their

validity 382-388

Chapter VII

BONA FIDE HOLDERS OF MUNICIPAL BONDS; THE MUNICIPAL DECISION; RECITALS IN BONDS, ORDINANCES, ETC.; WHEN PURCHASERS CHARGED WITH KNOWLEDGE OF ILLEGALITY 389-562

A. Bona fide holders, who are 389-417

B. Presumptions in favor of bona fide holders of municipal bonds. 418-437

C. Construction of recitals in municipal bonds 438-449

D. The municipal decision 450-536

1. When municipality bound or estopped by recitals in its

2. When municipality estopped otherwise than by recitals

in its bonds 527-536

E. Cases in which municipalities are not estopped; purchasers

of bonds charged with knowledge of illegality, when 537-562

* CHAPTER VIII.

RATIFICATION OF MUNICIPAL BONDS ILLEGALLY ISSUED 563-610

A. Ratification by acts of the body issuing them; retention of

proceeds, payment of interest, etc 563-584

B. Ratification by legislative enactment; constitutionality of

such legislation 585-610

TABLE OF CONTENTS. Vll

CHAPTER IX. NX?abtiX£f TAXATION; TAXES; ASSESSMENTS; THE BONDHOLDERS' ^SECURITY 611-638

A. Power to tax; nature and source of the power; legislative

B. Power to tax, implied from grant of power to incur indebted-

C. Fund applicable to payment of bonds 635-638

Chapter X

DISSOLUTION, CONSOLIDATION, AND REORGANIZATION OF MUNICIPAL CORPORATIONS; CHANGES AND REPEALS OF CHARTER POWERS; CREDITORS' RIGHTS, How AFFECTED 639-650a

CHAPTER XL CONSTITUTIONAL LAW 651-770

A. Principles of constitutional law; partial invalidity of statute, 651-667

B. Laws impairing obligation of contracts; retroactive laws.... 668-694

C. Due process of law; equal protection of the laws 695-715

D. Constitutional provisions when prospective 7 16-727

E. That laws shall embrace but one subject, which shall be ex-

pressed in the title 728-739

F. Inhibitions against special legislation; uniform operation... 740-747

G. Miscellaneous 748-770

Chapter XII. Remedies Of Bondholders 771-928

A. Action at law on bonds; action at law for money had and

received, or for other breach of contract; limitation of actions . 771-802

B. Bill in equity; to enforce payment of municipal obligations;

for reformation of bonds, etc 803-829

C. Mandamus, an ancillary remedy in Federal courts; nature of

the writ, extent of remedy for enforcement of municipal obligations 830-928

1. Jurisdiction of Federal courts in mandamus ancillary,

not original 830-838

2. Nature and office of writ of mandamus; when awarded;

to what extent the payment of municipal obligations

may be enforced by mandamus 839-891

3. Res adjudicata; to what extent parties are concluded, in

mandamus proceedings, by former adjudications 892 913

4. Parties, pleadings, and procedure in mandamus, to en-

force payment of municipal obligations 914-928

Chapter XVI

FEDERAL COURTS; JURISDICTION; RULES OF DECISION ............... 996-1080

A. Jurisdiction and process of Federal courts; not subject to

control by State legislation or State courts ............... 996-1015

B. Decisions of State courts ; when controlling on Federal courts

and when not; changed rules of decision affecting con-

1. When Federal courts will follow decisions of highest court

2. When Federal courts exercise independent judgment .... 1050-1070

3. Change in rules of decision by State courts; contract

rights protected by Federal courts .................. 1071-1080