Section 75. Municipal corporations can only exercise such powers as are conferred upon them by their charters, and all persons dealing with them must see that they have the power to perform the proposed act.

As when a city is expressly limited to a certain amount of indebtedness, beyond which no further debts can be created, a party loaning it money is bound to ascertain at his peril whether the city has not already reached its limit, and if he does not, and the city has reached its limit, he can not enforce payment of the evidence of indebtedness given him to secure the loan.13