This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
A constitutional or statutory limitation of indebtedness does not apply to contracts which do not create a personal liability against the public corporation. Thus such a limitation does not apply to a contract payable out of special assessments only ;l
17 Culbertson v. Fulton, 127 111. 30; 18 N. E. 781; Windsor v. Des Moines, 110 Ia. 175; 80 Am. St. Rep. 280; 81 N. W. 476; Covington v. McKenna, 99 Ky. 508; 36 S. W. 518; Brown v. Corry, 175 Pa. St. 528; 34 Atl. 854; Spilman v. Par-kersburg, 35 W. Va. 605; 14 S. K 279; Earles v. Wells, 94 Wis. 285; 59 Am. St. Rep. 886; 68 N. W. 964.
18 Hoffman v. Gallatin County, 18 Mont. 224; 44 Pac. 973; 18 Mont. 246; 44 Pac. 979; Pepper v. Philadelphia, 181 Pa. St. 566; 37 Atl. 579.
19 Ironwood Waterworks Co. v. City of Ironwood, 99 Mich. 454; 58 N. W. 371.
20 Browne v. Boston, 179 Mass. 321; 60 N. E. 934. Contra, unpaid installments of the purchase price of a park which constitute a lien only are not counted as debts. Kelly v. Minneapolis, 63 Minn. 125; 30 L. R. A. 281; 65 N. W. 115; Burn-ham v. Milwaukee, 98 Wis. 128; 73 N. W. 1018.
21 See Sec. 1033.
22 Keihl v. South Bend, 76 Fed. 921; 22 C. C. A. 618; 36 L. R. A. 228.
23 N. P. Perrine, etc., Co. v. Pasadena, 116 Cal. 6; 47 Pac. 777.
1 Denny v. Spokane, 79 Fed. 719; 25 C. C. A. 164; Jacksonville Ry. Co. v. Jacksonville, 114 111. 5G2; 2 N. E. 478; Quill v. Indianapolis, 124 Ind. 292; 7 L. R. A. 681; 23 N. E. 788; Ft. Dodge, etc., Co. v. Ft. Dodge, 115 Ia. 568; 89 N. W. 7; Clinton v. Walliker, 98 Ia. 655; 68 N. W. 431; Morrison v. Morey, 146 Mo. 543; 48 S. W. 629; Ladd v. Gambell, 35 Or. 393; 59 Pac. 113; Little v. Portland, 26 Or. 235; 37 Pac. 911; Smith v. Seattle, 25 Wash. 300; 65 Pac. 612; or out of a special tax;2 or out of the gross receipts of the waterworks for the erection of which the debt is incurred.3 If the debt is one for which a tax could be laid, but no tax has been laid, it is invalid if in excess of the legal limit.4 A limitation by statute as to the amount to be paid for a court house does not apply to a donation by private citizens.5 A judgment on a claim is not a contract within the limitation, and if on a debt which exceeded the limit, this fact must be set up in such action and cannot be a matter of collateral attack on the judgment.6 Such limitation does not apply to a judgment in tort.7 If a certain form of indebtedness is by express statutory provision authorized in excess of the limit of ordinary indebtedness, such limitation is valid.8
 
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