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Municipal Corporations - Debt Limitations - Validity Of Revenue Financing Bonds, James W. Deer

Michigan Law Review

The state of Ohio created a building authority to which it transferred for a period of twenty-five years certain hospitals and public land. In return the authority promised to repair the hospitals and to construct a number of new buildings. Bonds to the amount of $7,500,000 were issued by the authority on a resolution pledging the income to be derived from the property pursuant to a twenty-three year rent and bond retirement agreement with the department of welfare. The department promised to charge its patients enough to meet these obligations, and to make payment possible a statute was passed allowing …