MUNICIPAL CORPORATIONS - BONDS REDEEMABLE AT OPTION OF MUNICIPALITY- NOTICE TO BONDHOLDERS NECESSARY TO STOP RUNNING OF INTEREST

Authors

Michigan Law Review, University of Michigan Law School

Abstract

Defendant municipality issued bonds redeemable before maturity at defendant's option. There was no provision for registration, and neither the statute nor the bonds provided for notice of redemption. In May,1938, notice was published in newspapers of general circulation that the bonds were to be redeemed on June 1. Plaintiff, owner of the entire issue, did not know of the redemption until September 27. It sued for interest from June 1 to September 27. Held, notice by publication is sufficient to stop the running of interest, and plaintiff is therefore not entitled to recover. Philadelphia Savings Fund Society v. City of Bethlehem, 143 Pa. Super. 449, 17 A. (2d) 750 (1941).

Recommended Citation

Michigan Law Review, MUNICIPAL CORPORATIONS - BONDS REDEEMABLE AT OPTION OF MUNICIPALITY- NOTICE TO BONDHOLDERS NECESSARY TO STOP RUNNING OF INTEREST, 39 Mich. L. Rev. 1437 (1941).
Available at: https://repository.law.umich.edu/mlr/vol39/iss8/18