Page:North Dakota Reports (vol. 48).pdf/624

 ALEX CURRIE, et. al., Respondents, v. LYNN J. FRAZIER, et al., Appellants.

States—officers held not authorized to sell bonds at a discount, or pay commissions reducing amount received to less than par.

1. Where a statute authorizes officers of the state to sell certain bonds at not less than par and for cash, they may not contract to sell the bonds at a discount or to pay a commission to the purchaser which will reduce the amount received for the bonds to less than par.

States—evidence held not to show that bank purchased bonds, but that it held them as custodian.

2. The evidence showing the capacity in which the Bank of North Dakota held and attempted to dispose of the bonds, the sale of which is. in question, is examined and it is held that the bank did not become a purchaser of the bonds from the Industrial Commission, but that it held them as custodian for safe keeping.

Appeal from District Court of Burleigh County, Cole, Special, J.

Affirmed.

''Wm. Lemke'', Attorney General, for appellants.

The Bank of North Dakota is authorized to purchase bonds of the State of North Dakota. Chap. 148, Laws of 1919, § 4; chap. 153, Laws of 1919, § 7; chap. 154, Laws of 1919, § 6; chap. 24, Laws Special Session, 1919, § 5.

The Bank of North Dakota, as an agency of the sovereign power, has i distinct status separate and apart from that of the state itself. Its contracts are not the direct contracts of the state. Sargent County v. State, doing business as the Bank of North Dakota, 47 N. D. 561, 182 N. W. 270, 275; chap. 147, Laws of 1919.

A state agency may pay commission. Church v. Hadley, 240 Mo. 680, 145 5. W.8, 39 L. R.A. (N.S.) 248; Miller v. Park City, 126 Tenn. 427, 150 S. W. go, Ann. Cas. 1913 E. 83; State v. West Duluth Land Co. 75. Minn., 456, 78 N. W. 115.

J.J. Kehoe and A. E. Wheeler, for respondents.

The par value of a bond at any given time is the principal and interest then due on it. Accordingly the accrued interest on a bond at the time of ba Peli,