Page:Federal Reporter, 1st Series, Volume 2.djvu/552

 MERCHANTS NAT. BANK, LITTLE BOOe, V. PULASKI 00. 645 ���Merchants' National Bank of Little Eook v, The Countï �OF PuiiASKI. {Circuit Court, E. D. Arkansaa. April, 1880.) �CouNTT Bonds— New Bonds in lieu of Old — Failure of Countt to CABRï OUST Agbebmbnt— Propbr Rkmkdy. — Bonds were issued by a county, under an act of the legislature, making it obligatory on the county to levy an annual tax sufficient to pay the interest on the bonds as it accrued, and the principal at maturity. Aiterwards, the county proposed to the holders of such bonds that if they would scale tbem 25 per cent., and take new bonds for the reduced sum, the county would annually levy and collect a sufficient tax to pay the interest on the new bonds as it accrued, and the principal at maturity, and that if it failed to do so the holders of the new bonds shouJd be restored to ail their rights under the old bonds. New bonds were issued under this agree- ment, but the county failed to pay the interest thereon, and by reason of the terms of the act under which they were issued could not levy a tax for that purpose. Ifeld, an action at law could be maintained on the original bonds, and that a bill in equity, not seeking for any discovery, would not lie. �StJRRENDER OF VALID EVIDENCE OF INDEBTEDNESS FOR ONE THAT 18 ÏN- �VALiD — Effect. — Where a valid evidence of indebtedness issued by a county is surrendered by the holder to the county, and a neW evidence of debt issued therefor, which is invalid, the legal rights of the crediter are not aflected thereby. �Demurrer to Bill. �Prier to thetwenty-ninth of May, 1878, the complainant was the holder and owner of divers bonds of the defendant cor- poration, amounting in the aggregate, including interest, to the sum of about $43,000. These bonds were of two classes: First, bonds issued in pursuance of the provisions of the act of the general assembly of the state entitled "An act to authorize certain counties to fund their outstanding indebt- edness," approved April 29, 1873; second, bonds issued under the provisions of an act of the general assembly of this s-tate entitled "An act to authorize the several counties in the state to fund their outstanding indebtedness," ap- proved March 6, 1875, and an act supplementai'y thereto. �By an act of the general assembly of Arkansas, approved March 6, 1877, (Acts 1877, p. 21,) the several counties of �v.2,no.6— 35 ����