Section 84. In nearly all the states provisions are made in constitutions, statutes and incorporating acts limiting the amount of municipal indebtedness to a certain per cent of the assessed value of the real and personal property, within the corporate limits.

Under the constitution of Illinois, municipal corporations are prohibited from incurring indebtedness, in any manner or for any purpose, to an amount, including existing indebtedness, in the aggregate exceeding five per cent. on the value of the taxable property therein, to be ascertained by the last assessment for State and county taxes previous to the incurring of such indebtedness, and any corporate indebtedness created beyond such limit, and the evidences thereof, are void, and no tax can be levied and collected to pay the same or interest thereon.36

35 Bank vs. Chillicothe, 7 Ohio, Part II, page 31.

It is held, that limitations imposed by the constitution on the power of municipal corporations to contract debts, should be construed with reference to existing facts, and with a view to the practical working of that instrument, and such a literal construction as would defeat the object to be attained should not be adopted.37