Town of Lancaster v. First Nat. Bank

• Decision Date: 14 July 1908
• Citation: 61 S.E. 1025,80 S.C. 547
• Parties: TOWN OF LANCASTER v. FIRST NAT. BANK OF LANCASTER et al.
• Court: South Carolina Supreme Court

61 S.E. 1025

80 S.C. 547

TOWN OF LANCASTER v. FIRST NAT. BANK OF LANCASTER et al.

Supreme Court of South Carolina

July 14, 1908

Appeal from Common Pleas Circuit Court of Lancaster County; Geo. W Gage, Judge.

Submission of controversy without action between the town of Lancaster as plaintiff, and the First National Bank of Lancaster and others, as defendants. Judgment for plaintiff. Defendants appeal. Affirmed.

Ernest Moore, for appellants.

PER CURIAM.

The purpose of this appeal is to test the validity of certain bonds of the town of Lancaster, the appellant above named which were contracted to be sold by said appellant to the several respondents above named, the issues herein having been submitted to the circuit court upon an agreed statement of facts by way of controversy without action, and the same questions being now presented to this court by appeal from the circuit decree, which held the said bonds to be valid and binding obligations. The bonds in question are waterworks bonds of the said town to the amount in par value of $30,000, issued in the denominations of $500 each, dated May 1, 1908, bearing interest from date at the rate of 5 per centum per annum, payable semiannually, due 40 years after date, with the privilege of redemption 20 years from date. It appears that these bonds were duly authorized to be issued at a rate of interest not to exceed 6 per centum per annum, by the vote in favor of such issue by a majority of the duly qualified registered electors of the said town voting at an election held on the 27th day of April, 1908, pursuant to the requirements of law, and by ordinance of the town council of the said town on the 30th day of April, 1908, duly declaring the result of said election as aforesaid. At the same election, three commissioners of public works of the town of Lancaster were duly elected and so declared by ordinance of the said town council, and thereupon duly qualified as such and entered upon the discharge of the duties of said offices. This election was regularly ordered and held in pursuance of a petition therefor duly signed by a majority of the freeholders of the said town of Lancaster, after due advertisement and a full compliance with all the requirements of law. By ordinance duly adopted on the 30th day of April 1908, the town council of the town of Lancaster ordered and directed the issuance of the said coupon bonds to the amount in par value aforesaid, to be signed by the mayor and clerk and treasurer of the said town and duly sealed with the seal thereof, as of date the 1st day of May, 1908, to be issued in such denominations as to the said mayor and clerk and treasurer shall seem to be for the best interests of the said town and to bear such rate of interest, not to exceed 6 per centum per annum as may be deemed by the said mayor and clerk and treasurer to be most advantageous to the said town. Thereafter, on the 15th day of June, 1908, with the consent and approval of the said mayor and clerk and treasurer, and by the ratification of the said town council the said bonds were by the said commissioners of public works duly contracted to be sold, severally as follows: $10,000 par value thereof to the said First National Bank of Lancaster, $10,000, par value thereof to the said Bank of Lancaster, and $10,000 par value thereof to the said Farmers' Bank & Trust Company, the terms of sale being in each case as follows, to wit: That the bonds shall be 40-year bonds, with the privilege of redemption after 20 years from the date thereof, shall be dated May 1, 1908, and mature May 1, 1948, shall be of the denomination of $500 each, bearing interest from date at the rate of 5 per centum per annum, payable semiannually on...