ABSTRACT

The record of municipal bonds has been better than that of State bonds. In the case of municipal bonds, moreover, there is a fairly complete legal remedy in case of default. The Supreme Court decision holding that city bonds payable from a specific fund provided for by a tax levy are not debts within the meaning of the Constitution seems like an evasion of provisions that are too severe. South Carolina exempts from the debt limit refunding bonds. Mississippi has, in its Statutes, an interesting provision that bonds issued for the construction or purchase of waterworks, gas or electric plants may be secured by pledge of the revenue of such plants. The North Carolina Law sets out very carefully the various maturities of bonds issuable for various purposes. The chapter focuses on county, municipal and district bonds, there remains to be considered one other general class of facts.