First National Bank v. Van Buren School Township

93 N.E. 863, 47 Ind. App. 79, 1911 Ind. App. LEXIS 23
CourtIndiana Court of Appeals
DecidedFebruary 2, 1911
DocketNo. 7,138
StatusPublished
Cited by12 cases

This text of 93 N.E. 863 (First National Bank v. Van Buren School Township) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Van Buren School Township, 93 N.E. 863, 47 Ind. App. 79, 1911 Ind. App. LEXIS 23 (Ind. Ct. App. 1911).

Opinion

Adams, J.

— Action by appellant against appellee on a township warrant in the words and figures following:

“State of Indiana, Daviess County.

Trustee’s Office Yan Burén Township. This is to certify that there is due from this township to the First National Bank of Loogootee, Indiana, or order, $400 for money received for Yan Burén township, to be paid out of the tuition funds with six per cent per annum from January 1, 1907, payable at the First Na[81]*81tional Bank at Loogootee, Indiana, on or before the 1st day of January, 1908........No..............

ITiram Sims, Township Trustee.

Given by authority of the advisory board this 1st day of January, 1907. James Evans, President.

James Trueblood, Secretary.

Albert Singleton.”

The complaint was in one paragraph, to which a demurrer was overruled, and the cause was put at issue by an answer of general denial. Upon request the court made a special finding of facts and stated its conclusion of law thereon.

Said finding discloses that on January 1, 1907, the members of the advisory board of Van Burén school township, elected in November, 1906, went to the home of the trustee for the purpose of organizing said board and for the purpose of examining the annual report of the trustee; that no meeting was had on said date, but by agreement they were to return on January 4, 1907, and organize; that no record of such agreement was made; that on said January 4 all the members of said advisory board did meet at the home of the trustee for the purpose of organizing, and for the purpose of examining the financial report of said trustee for the year 1906; that said board on said date met and organized by the election of James Evans president and James Trueblood secretary; that no notice of said meeting was ever given; that at said meeting the trustee orally reported to said board that he did not have sufficient funds to pay the teachers of the township for their services as they become due during the remainder of the school year, and that such teachers would have to wait for their pay for their said services until he should make the June, 1907, draw for funds from the county treasurer, unless said board authorized him, as such trustee, to borrow $800 for the tuition fund with which to pay said teachers ps their wages became due; that the advisory board relied [82]*82upon the statement of the trustee, and having no information to the contrary, believed that an emergency existed requiring said trustee to borrow said $800 in order to carry on the township schools for the remainder of the school year, and did verbally authorize said trustee to borrow $800 for said purpose; that the only entry made in the record of the advisory board relating to said loan was as follows: “The trustee then asked the privilege of borrowing $800, $400 to be paid January 1, 1908, and $400 to be paid January 1, 1909, at six per cent interest, which was granted.”

It is also found that the record of the meeting of January 4, 1907, was not signed by all of the members of the advisory board on that date, but was signed by all of the members of said board on January 11, 1907; that the warrant sued on, bearing date of January 1, 1907, was not signed by the trustee and members of the advisory board until January 4, 1907, and was not delivered to appellant and the money received thereon until January 8, 1907; that on January 4, 1907, the trustee of appellee township had in his hands belonging to the tuition fund of said township the sum of $919.03, and that he received from the treasurer of said county on January 27, 1907, tuition funds for said township in the sum of $1,227.27; that he had paid the teachers of said township from the beginning of the school term to January 4, 1907, $155.00; that the sum of $3,211.74 of tuition money was required to pay the teachers of said township for the school year ending March, 1907, and that the school term, on January 4, 1907, was half over; that out of the $800 so borrowed said trustee paid the sum of $496.75 to the school teachers of said township, but that no payment was made to said teachers between January 1 and 27, 1907, and that thereafter said trustee used the remainder of said money for other purposes than tuition, without the knowledge or consent of appellant; that appellant did not examine the records of the advisory board, [83]*83the records kept by the trustee, nor the records in the auditor’s office in Daviess county pertaining to the tuition fund in saic^county, but relied wholly upon the statement made by said trustee and the signed statement of said advisory board on said warrants, and at the time believed the representations so made to be true.

Upon the finding of facts the court stated as its conclusion of law “that plaintiff is not entitled to recover on the warrant sued on, and that defendant is entitled to a judgment for its costs.”

To this conclusion of law appellant at the time objected and excepted, and has assigned said conclusion of law as error in this court.

The act creating the township advisory board defines its powers and duties, and provides that “such board shall keep a record of their proceedings in a separate book to be furnished by such trustee, and kept as a part of the records of the township, to be known as the record of the advisory board of such township, and to remain in the custody of the chairman of such board. Said board shall elect one of its members secretary for said board, who shall record the proceedings thereof at any meeting, in full, under the direction of the board, which shall be signed before the board adjourns.” §9590 Bums 1908, Acts 1899 p. 150, §1.

1. It will be observed that the record of the advisory board is a public record, and that the proceedings of the board are required to be set out therein in full. This record is open to inspection to all persons doing business with the township.

2. The borrowing of money to meet an emergency, not included in the existing estimates and levy, must be authorized by the advisory board, and entered upon the record. The statute (§9595 Burns 1908, Acts 1901 p. 415, §1) provides: “Upon a special call of the township trustee or the chairman of the advisory board or a majority of the members of said board, given in writing [84]*84to each member thereof, stating the time, place and purpose of the meeting, said board may, if a quorum be present, by consent of all the members present, d^jprmine whether an emergency exists for the expenditure of any sums not included in the existing estimates and levy. In the event that such emergency is found to exist said board may authorize by special order entered and signed upon the record, the trustee to borrow a sum of money to be named sufficient to meet such emergency.”

It is evident that the right to borrow money as provided in this section is dependent upon the finding of the board that an emergency exists. But it is urged by counsel for appellant that a finding of such emergency is not required to be set out in the record of the advisory board, for the reason that §9595, supra, directs that only the special order authorizing the loan is to be entered and signed upon the record.

Considering this section alone, appellant’s contention would seem to be well founded, but when considered in connection with §9590, supra,

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Cite This Page — Counsel Stack

Bluebook (online)
93 N.E. 863, 47 Ind. App. 79, 1911 Ind. App. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-van-buren-school-township-indctapp-1911.