Case ID: mann-unrep-cas_1/html/0198-01.html
Source: Caselaw Access Project
Author: {"author": "Egan, J.,", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

No. 6939.
    New York Guaranty and Indemnity Co. vs. The Board of Liquidation.
    When bonds of this State have been issued under a legislative act to the Mississippi and Mexican Gulf Ship Canal Company, directing that bonds to a given amount shall be issued upon the completion of the first mile of the work, and a like quantity of bonds upon each succeeding mile, and that the Governor shall issue them upon the certificate of the engineer that so much of the work has been completed; held, that this certificate is not conclusive, when those bonds are presented for funding under an act that requires the court to investigate and decide whether they have been issued “in strict conformity to law and for a valid consideration,” but that the court will go behind the certificate, and if it finds the bonds were fraudulently issued, will refuse to permit them to be funded, even when in the hands of third parties who had no knowledge of the fraud and who had acquired them for a valid consideration.
    Appeal from the Fifth District Court of New Orleans. Rogers, J.
    Kennard, Howe & Prentiss for Plaintiff Appellant. The Assistant Attorney-General for the Defendant.
   Egan, J.,

delivered the opinion affirming the judgment.