Case Name: The City of Poughkeepsie, Pl'ff, v. William L. Quintard, Def't
Court: New York Supreme Court, General Term
Jurisdiction: New York
Decision Date: 1892-07-22
Citations: 47 N.Y. St. Rep. 386
Docket Number: 
Parties: The City of Poughkeepsie, Pl’ff, v. William L. Quintard, Def’t.
Judges: 
Reporter: New York State Reporter
Volume: 47
Pages: 386–388

Head Matter:
The City of Poughkeepsie, Pl’ff, v. William L. Quintard, Def’t.
(Supreme Court, General Term, Second Department,
Filed July 22, 1892.)
Municipal cobpobations—Poughkeepsie—Renewal bonds.
The city of Poughkeepsie is not precluded by the provisions of its charter from issuing bonds under chap. 525, Laws 1889, in exchange for, or to raise money to pay maturing water bonds, as in neither case is a new debt or obligation created.
(Cullen, ,T., dissents).
Submission of controversy without action.
The question involved is the power of plaintiff to issue bonds,, the proceeds of which are to be applied to the payment of water bonds maturing this year.
C. B. Herrick, for pl’ff; Clark & Sedgwick, for def’t.

Opinion:
Barnard, P. J.
—The right to exchange a new bond of the city for an old one maturing is given plainly by chap. 526, Laws of 1889, and the laws amended thereby. Tim act of 1889 went farther than the preceding acts, in that legislative permission was-given to sell new bonds under very guarded conditions, and to pay the old ones with the proceeds of the new. Neither the direct exchange*or the issue of the new bonds constitutes a creation of a liability under the city charter. Neither creates a new debt or obligation. As to the exchange, it is very plain that a substitution of one bond for another created no new liability. The application of money derived from a new bond to the pay ment of the old is the same thing in the spirit of the act permitting cities to meet maturing loans by an exchange or sale of new bonds.
Judgment for plaintiff upon submitted case, with costs.
Dykman, J., concurs.