3 So.2d 805 (Fla. 1941), Andrews v. City of Winter Haven

Citation:3 So.2d 805, 148 Fla. 144
Opinion Judge:Author: Terrell
Party Name:ANDREWS v. CITY OF WINTER HAVEN.
Attorney:H. C. Crittenden, and W. H. Hamilton, for Appellant.
Case Date:September 13, 1941
Court:Supreme Court of Florida
 
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Page 805

3 So.2d 805 (Fla. 1941)

148 Fla. 144

ANDREWS

v.

CITY OF WINTER HAVEN.

Florida Supreme Court

September 13, 1941

Appeal from Circuit Court, Polk County; H. C. Petteway, judge.

H. C. Crittenden and W. H. Hamilton, both of Winter Haven, for appellant.

Henry Sinclair, of Winter Haven, for appellee.

TERRELL, Justice.

On May 1, 1933, the City of Winter Haven had a bonded debt of more than two million dollars, much of which was in default. For the purpose of refunding such indebtedness, refunding bonds in the sum of $2,148,054.78, designated as City of Winter Haven General Refunding Bonds, Issue of 1933, Series 'A' and 'B', were authorized and issued.

Series 'A' bonds were for the purpose of refunding the original bonds of the City bearing six per cent interest, and Series 'B' bonds were for the purpose of refunding the original bonds of the City bearing five and one half per cent interest. All bonds of both series were dated April 1, 1933. The full quota of both series was issued, but a small percentage of the original bond holders declined to exchange for the refunding bonds of 1933.

Each refunding bond of the 1933 issue contained a graduated interest payment provision and a provision for calling on any interest payment date according to a designated schedule. Each refunding bond also included a 'deferred interest coupon' to represent the difference between the interest rate on the original bonds and the refunding bonds as follows:

'No._____.

$145.00

'On the First Day of April, 1963, the City of Winter Haven, Polk County, Florida, will pay to bearer at the Central Hanover Bank and Trust Company of New York City, in the City of New York, New York, the sum of One hundred forty-five and no-100 Dollars ($145,00), being the then enforcible, collectible and deferred interest on its City of Winter Haven General Refunding[148 Fla. 146] Bond Issue of 1933, Series 'A' dated April 1, 1933, unless said bond shall have been theretofore called for redemption.'

On January 1, 1941, the total indebtedness of the City of Winter Haven was $2,150,720.36, slightly above the 1933 amount and was represented by the principal, accrued and defaulted interest on refunding bonds, and judgments on bonds not exchanged for the 1933 refunding bonds but none of it was represented by the 'deferred interest coupons'. In October, 1940, the City entered into contract...

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