Insurance Company v. Bruce - 105 U.S. 328 (1881)
U.S. Supreme Court
Insurance Company v. Bruce, 105 U.S. 328 (1881)
Insurance Company v. Bruce
105 U.S. 328
1. Where a city, having by statute authority to make an unconditional subscription to the stock of a railroad company, and to deliver its bonds in advance of the construction of the road, issued them, representing in effect by their recitals that they conformed to the statutory requirements, and that its liability thereon was complete, held that the bonds are valid in the hands of a bona fide holder for value, and that the city is estopped from showing that it had imposed certain conditions upon its liability, although the statute declares that in such an event the bonds should not be binding until such conditions were performed.
2. Town of Eagle v. Kohn, 84 Ill. 292, commented upon and distinguished.
The facts are stated in the opinion of the Court.