U.S. Supreme Court
School District v. Stone, 106 U.S. 183 (1882)
School District v. Stone
Decided November 6, 1882
106 U.S. 183
Bonds issued in the name of an independent school district in the State of Iowa contain these recitals:
"This bond is issued by the board of school directors by authority of an election of the voters of said school district held on the thirty-first day of July, 1869, in conformity with the provisions of chapter 98 of acts 12th General Assembly of the State of Iowa."
l. That the recitals imply as well that the bonds were issued by authority of the election, as that the election was lawfully held, but do not necessarily or clearly import a compliance with those provisions which, following substantially the words of the state constitution, prohibit such a district from incurring indebtedness
"to an amount in the aggregate exceeding five percent on the value of its taxable property, to be ascertained by the last state and county tax lists previous to the incurring of such indebtedness."
2. That in a suit on the bonds, the district is not estopped by the recitals from showing that the indebtedness of which the bonds are evidence exceeds the amount limited by the constitution and laws of the state. chanroblesvirtualawlibrarychanroblesvirtualawlibrary