Page:Federal Reporter, 1st Series, Volume 3.djvu/199

 193 FEDERAL REPOHTEB. �the officera of such county, city, or township [shall therexipon issue the bonds of such county, city, or township] for the amount of such subscription, and shall forthwith deliver the same, together with the original or a copy of the subscription — setting forth its^ ternis in full — to the treasurer of state, which said bonds shall be held by the said treasurer of state. in escrow, until the conditions in the terras of said subscrip- tion to such railroad or other work of internai improvement Bhall be in ail things fully complied with; that upon the conditions of the said subscription being in ail things fully complied with, then the treasurer of state shall deliver such bonds to the parties entitled thereto, who shall have the same registered as hereinafter provided : provided, that $uch bonds shall not bear interest or be negotiahle until ajter the de- livery and registration thereof; and provided further, that in case of a failure to oomply with the conditions in the terms of such subscription, then such bonds shall be by said treas- urer of state cancelled and redelivered to the county, city, or township issuing the bonds ; and provided further, that this section shall not apply where the people may have named some party as trustee in their vote on the proposition, and the contractor may thereafter agree to the same. " �The meaning of this section is plain. It was intended to protect the tax payera of the counties in Kansas against an unauthorized or fraudulent issue of bonds under the act without a compliance with its provisions. Prior to its pas- sage the law had been settled that, in the absence of legisla- tion to the contrary, bonds purporting on their face to have been issued and delivered by the authorities of a county in pursuance of law, operated in the hands of a bonafide pur- chaser to estop the county from denying their validity. �The legislature of Kansas undertook to provide by law cer- tain safeguards against fraud. These are set out in the act a')ove mentioned. AU such bonds were to be delivered to the treasurer of state, to be held by him in escrow, until the terms of subscription should be fully complied with, and upon such compliance to be by him delivered to the parties entitled thereto. Such delivery by the treasurer is made by ����