080228CITY COMMISSION, SANFORD, FLORIDA,
MINUTES
The City Oom~tssion of the Oity of Sanford, Florida met in adJo=rned session
at the City Hall in 8anford Florida, at Three O~Clock P M August 2, 1928.
Present: Commissioner E F Housholder, Mayor
Frank L Miller
City Attorney, George A DeOottes
City Clerk, F S Lamso~
Absent: 0c-missioner, S 0 Chase.
The City Attorney presented conditional proof of Claim in the amount of $~00,000.00
Proof of Claim in the sum of $J$67~.00, and Proof of 01&im in the amount of
of the City of Sanford, Florida to be filed with E H Ashoraft, ~s Receiver of the Semi-
nole County Bank, prepared by the Lesal Dep&rtment of the City of sanford, Florida
said proofs of ol&im with their &ocompanyin~ schedules, bein~ in words and
follows:
( ~ Conditional Proof of Claim
Of the City of Sanford, Ylorida , presented to E H Aahcraft, as Receiver of Seminole
County B~, Sanford Florida. on the 2nd day of August ~ D 1928.
8tats of Florida )
County of 8~e
Personally appeared before me, the undersigned, & Not&fy Public in and for said
County and 8tats, E F Housholder, Mayor and ex-offidio Chairman of the Board of Bond Trustee~
of the City of Sanford, Florida., who bein~ duly sworn, says that the Seminole County Bank,
Banford Florida, upon the conditions hereinafter fully set forth will be Justly indebted to
City of Sanford, Ylorida, a municipal corporation in the sum of($~O0,O00.O0) FIVE
THOUSAND AND O0/lO0 Dollars, upon the following claim to-wit~
Itemized Claim Dollars Cents.
Balance due on Open ~ccount subject to check ...................
B~lance due on Savings ~ccount as per Schedule "Aj attached , upon
the conditions hereinafter est fort~ ........................... $~00,000. O0
Certificate of deposit no ----Issued by Seminole County Bank,
Sanford Florida
Certificate of Deposit No-----Issued bY Seminole County Bank,
Sanford Florida. ..............................................
Liberty bond Certificate of Deposit No----Issued by Seminole County
B~, Sanford, Florida ............................ ~: .........
Accrued interest on .............................................
Christmas Savings Club- ................................
Oashier~s Check issued by Seminole Oounty Bank, Sanford, Florida----
Certified Check issued by Seminole County Bank, Sanford, Florida ....
Unpaid Draft No-- .... Issued by Seminole County Bank, 8anford~
Florida- .................................................
Unpaid Draft No-----Issued by Seminole County Bank, Sanford, Florida
Total
Ail of whieh upon the happening of the conditions hereinafter set forth will be due and
payable to said City of Sanford Florida, alone it having given no endorsements, transfers
or assignments of the same or any part thereof; and affiant says that there are no set-
CITY COMMISSION, SANFORD, FLORIDA.
miNUtES
August 2, 1928
said bank holds no note,
ness against said City either as maker, endorser, security, guarantor, or otherw ise,
cept as follows: Except as referred to in Schedule eas &tracheal.
Name E F Hcuaholder
( Seal
check, draft, draft bill or exchange, or any evidence of indebted-
ex-
As Mayor of the C.lty of Sanford, Florida
and E~Officio unaxrme- of the Board of
Bond Trustees of the City of Sanford,
Florida.
'Sworn to and subscribed before me this 2nd day of August A,/D 1928
Witness my hand and official seal, thfs 2nd day of August A,D
V
.Notary Public, State of Florida..
My Commission expires
To be sworn to before a Notary Public. s
Ther · is a ledger sheet in the possession of the Receiver of the Semlnole County
Bank known u eLedger Sheet No 00~# entitled e Bond Trustees, City of Sanford, Florida,e
on whlch ledger there ~s shown a purported balance as of June 25, 1927 In the sum of FIVE
HUNDRED THOUSAND DOLLARS ($~OO,0OO.O0) Payable to The Olty of Samford, Florida, repeesentlng
a purported sum of Five Hundred Thousand Dollars ($~00,OOO.00) on deposit by the City of
8aaford Florida, tn the Savings Department of the Semlnole 0ounty Bank.
There ia now pending in the District Oouxt of the United States, in and for the
~outhern District of New York, In Equity , a suit instituted by the Oity of Sanford, Florida
a municipal corporation, against The Chase National Bank of the 0ity of New York, a national
banking association, organized and existing under the laws of the UNITED STATES OF ~u~RIOA
in which proceeding the 0try of Sanford, Florida, hu procured a temporary injunction
against the Chase Nation~l Bank of the 0try of New York, restraining The Chase Natton~l
Bank of the City of New York from selling, or offering for ss/e, certain unsold purported
bonds of the City of Sanford, Florida, more pamtlcularly described as follows:
City of Sanford, Florida ~pe_r cent Improvement Bonds, Series eLL" dated July let,
1926, m~turing July let, 1955~ numbere~ from 101 to 1~0, both numbers inclusive.
City of tanford, Florida 9}%_per cent improvement bonds, Series #MM~ dated July
192~, m~turing July let, 1955, numbered from 1 to ~O both numbers inclusive.
City of tanford, Florida, ~ per cent Improvement. bonds, Series slg~s dated July
1926, maturing July let, 1~6, numbere~ from 1- to ~OO, both numbers inclusive.
~ity of Se~ford, Florida, ~ per cent Improvement bonds, Series #SSs dated
st 1927, maturing Jan,,a~y let, 1957, numbered from 1 to 250, both numbers inclusive.
In said suit, by the bill of complaint, the City of Sar_ford, Flerida, also seeks to
have certain purported certificates of indebtedness of the City of Sanford, Florida, aggre-
gating Five Hundred Thousand Dollars ($500,000.00) fully described in said proceedizg, and
hereinafter particularly described, delivered and surrendered up by the Chase
Bank of the City of New York for cancellation.
Forrest Lake, the President of Seminole County Ba~k, on and after the ~th day of.
]~ovember 1926 being then the Mayor of the City of Sea,ford, Florida, without the authority
of any law therefor, and without consulting the City Commission of the City of Sanford, Florida
and without the knowledge of the City Co-,,ieelon of the City of Sanford, Florida, did cause
to be issued, executed by himself as Mayor and attested by the City Clerk of the City of
Sa-*ord Florida, under the corporate sea/ of said City, and did further cause to be de-
CITY COMMISSION, SANFORD, FLORIDA,
MINUTES
AdJuurned Session &uguet 2
Date
November ~, 192g
December 2?, 192~
December 2?, 1926
Amount
$3oo,ooo.oo
Sloe;coo.co
~200,000.00
Maturity
Febr~,-~y 8, 1927
March
On the back of said purported certificate of indebtedness for Three Hundred
Thousand Dollars ($300,000.00) appears an endorsement substantially to the effect that
One Hundred Thousand Dollars ($100,000.00) has been paid on account of principal thereof.
Forrest ~ake, Subsequent to the llth day of October 1926, and prior to the
day of October 1926, president of the Seminole County Bank, and V~yor of the City of Sanfozd
Florida, and ex-officio Chairman of the Board of Bond Trustees of the City of Sanford,
Florida, without the knowledge of consent of the City of Sanford, Florida, or of the City
Commission of the City of Sanford, Florida, and without the authority of any law therefor
did cause all of the unsold bonds above described to be signed in his name as Mayor of the
City of Sanford, Florida, and to be attested in the name of ~ R Philips, as the City Clerk
of the 0ity of Sanford, Florida, and the seal of theCity of Sanford, Florida , to be
affixed thereto, and did further cause all of saidunsold bonds to be delivered to the
0base National Bank of the 0ity of New York, and also the above deeoribedpurported
certificates of indebtedness of the City of Sanford, Florida as collateral security to
certain indebtedness of the Seminole County Bank to the Chase National Ba-~ of the City of
New York, evidenced by certain promissory notes made and delivered by the Seminole
Bank to the Chase National Bank of the City of New York, all without any warrant or autho~
!
ity of law therefor, and without any authority from the City Oommission so to do, and with,
out their knowledge or consent.
From such investigation as claimant has been able to make, ola~-~t verily'believes
that the ledger Savings account Sheet No 00/~, entitled # Bond Trustees, Oity of Sanford
Florida,~ represents purported credits extended to the Board of Bond Trustees of the City
of Sanford Florida, in the Savings Department of the Seminole County Bank to the amount of
the face value stated and shown on the purported certificates of indebtedness of the 0ity
of Sanford, Florldda, described above, and hypothecated by the Seminole County Bank unto
the 0base National Bank of the City of New York/
The Oity of Sanford, Florida, denies any liability whatsoever on its part under and
by virtue of the unsold bonds above described unlawfully executed by Forrest ~ake in the
manner aforesaid, and unlawfully hypothecated by Seminole 0ounty Bank in the manner afore-
said to The Chase National Bank of the City of New York, and also, likewise, denies any
liability whatsoever under and by ~irtue of said purported certificates of indebtedness
unlawfully executed by the said Forrest Lake in the manner aforesaid, withoui any warrant
or authority of law whatsoever, and unlawfully pledged and hypothecated by the Semi~ole
County Bank to the Chase National Bank of the City of New York. The City of Sanford, Florida
is now asserting in a Federal Oou~t of oempetent Jurisdiction its claim that said purported
bonds of the City of Sanford, Florida, and said purported certificates of indebtedness of
the 0ity of Sanford, Florida, are not legal obligations of the City of Sanford Florida,
in the hands of the Chase National Bank of the 0iff of New York, or any other person
fixes, or corporation whomsoever, and is seeking to secure a return of eaidt~nsold bonds
and the surrender and cancellation of said purported certificate of indebtedness.
.?
CITY COMMISSION, SANFORD, FLORIDA,
MINUTES
Adjourned Session ~u~nst 2, at ~ P ~
and constitute l~gal obligations of the City of Sanford, Florida, the City of Sanford, Florid~
makes claim against the Seminole County Bank for an amount corresponding in amount to the
amount and face value of said purported obligations of purported bonds and purported oertifioat
of indebtedness adjudged to be valid obligations of the City of Sanford, Florida.
This claim is filed conditionally by the City of Sanford, Florida, without any pre~udi~
whatsoever to its legal rights and to any contentions which the City of Sanford Florida, has
heretofore made, or may hereafter make and assert with reference to the invalidity of the
above described purported certificates of indebtedness and purported bonds of ~the Oit~ of Sanf$rd
Florida, and is made solely for the purpose of protecting the City of Sanford, Florida, i~
the event a court of competent Jurisdiction may hereafter b~ Judgment or decree determine
that the above described purported certificates of indebtedness and purpo2ted bonds of the
Oity of Sanford, Florida, constitute valid obligations of the City of Sanford, Florida, for
payment of money for which a credit has been extended unto the 0ity of S~n~ord Florida to the
amount of Five Hundred Thousand Dollars ($500,000;00) as purported to be shown by said Ledge2
Sheet No 00~ of the Savings Department of the Seminole County Bank.
The filing of ~this claim shall not constitute or be construed to be an admission,
either expressed or implied, by' the City of Sanford, Florida, of the validity of any of the
purported obligations consisting of purported bonds and purported certificates of indebted-
ness of the City of Sanford, Florida, as above described, or to constitute an estoppel against
the claimant in hereafter asserting the invalidity of said purported obligations, and claimant
hereby asserts that each and every of the above described purported obligations of the City
of Sanford, Florida, are illegal, null and ~Oid, and unenforceable a~ obligations of the City
of Sanford, Florida.
The sole purpose in filing this conditional claim being to assert and set forth the con-
tingent claim of the said City of Sanford, Florida, against the Seminole 0ounty Bank, dependen~
entirely upon the contingency aforesaid.
PROOF OF 0LAIM
of the City of Sanford Florida, presented to E H Aeheraft,
SA-*ord Florida, on the let day of August A D
as Receiver of Seminole 0ounty Bank~
State of Florida I SS
County of Seminole
PERSONALLY APPEARED before me the undersigned a Notary Public in and for said County and
State, E F Housholder, Mayor and member of the City Commission of the City of Sanford, Florida,
who, being duly sworn, says that the Seminole County Bank, Sanford Florida, is Justly indebted to
City of Sanford, Florida, a municipal corporation in the sum of $~675.OO) Four Thousand Six
Hundred Seventy five and 00/100 Dollars upon the following claim to-wit:
Itemized Claim Dollars Cents.
Balan~ · due on open account subject to check
Balance due on savings account- .....................
Certificate of Deposit No 2105 issued by Seminole County Bank, Sanford
Florida .....................................................
Certificate of Deposit No --- issued by Seminole County Bank, ~anford
4 IS,
MINUTES
C!TY C~MMI~$!ON, SANFORD, FLOR)DA, Adjotlrned Sesl~ion An~Ltet 13 at 3 13 1~o
19
Cashier's Check issued by Seminole County Bank, Sanford, Florida .....
Certified check issued by Seminole County Bank, Sanford, Florida ........
Unpaid draft no .... Issued by Seminole County Bank, Sanford, Florida~ ....
U~aid Draf~ No .... Issued by Seminole County 'ank ,Sanford, Florida .....
Dollars Cents.
* Issued to Globe Dredging Company, and endorsed by Globe Dredging Company to the Order
of the City of Sanford, Florida.
All of which is due and payable to City of Sanford, Florida, alone, it having given no endorsements
transfers, or assignments of the same, or any part thereof, and affiant says that there are
no set-offs, counter claims or other legal or equitable defenses to said claim or any part
thereof except as referred to in Schedule "B" attached, and affiant fumther says that said bank
holds no note, check draft bill or exchange, or any evidence of indebtedness against said City
either as maker , endorser, security, guarantor, or otherwise, except as follows:
Except as referred to in Schedule
Seal)
"B "attacBed.
Name
E F Houaholder
As Mayor of the City of Sanford, Ylorid~
8worn to and subscribed before me this 1st day of August A.D. 1928
Witness my hand and official seal, this 1st, day of August A D 192~.
To be sworn to before a notary public.
¥ Shipn ,
Notary Public , State of Florida
My Commission expires 8/25/29
SOHEDULE #B#
There are outstanding divers paper writings pum-porting to be time warrants,~demend war-
rants, certificates of indebtedness, and other pum-ported evidences of indebtedness executed
by divers persons pumporting to act as officials of the City of Sanford, Florida, payable
to the Seminole County Bank, or its order, Some of these purported evidences of indebtedness
are now actually involved in pending litigations, which may determine the validity or invalid-
ity thereof as legal obligations of the City of Sanford, Florida. Others of said pu~orted
evidences of indebtedness are now under investigation by the said City of Sanford Florida,
with a view to determining whether or not the City of Sanford, Florida will recognize the
validity thereof.
With reference to all of the paper writings referred to in this schedule, the fore-
going claim is filed without prejudice to any contentions which the said City of Sanford Florida
has heretofore made or may hereafter assert with reference to the validity or invalidity
thereof. If, however, either by voluntary action of the City of Sanford, Florida, or by Judgment
or decree of a court 'of competent Jurisdiction, any of the said purported evidences of
debtedness ams hereafter admitted or adjudged to be legal obligations of the said City of
Sanfsrd, Florida, then insofar as the same may bring about credits or off-sets against the
foregoing proof of claim, such credits or off-sets shall hereafter be items deductible fro~
the gross amount of the Claim herewith filed.
MINUTES
CITY COMMISSION, SANFORD, FLORIDA,
Adjourned Session August 2 3 P M
Of theCity of
Bank, Sanford, Florida, on the 2nd d~y of August A D 1928.
PROOF OF CLAIM
Sanford, Florida presented tO E H Ashcr~ft , as Receiver of Seminole County
~O
State of Florida )
County of Seminole) SS
PERSONALLY APPEARED before me, the undersigned, a Notary Public in and for said County
and State, E F Housholder as Mayor and Ex-officio Chairman of the Board of Bond Trustees of
the City of Sanford, Florida, who, being duly sworn says that the Seminole County Bank, Sanfor~
Florida is Justly indebted to City of Sanford, Florida a municipal corp. in the sum of
$14,~28.~) Fourteen Tl~ousand Four Hundred Twenty Eight and 29/100~ Dollars upon the
following claim to-wit:
Itemized Claim Dollars cents.
Balance due on Open Account subject to check as per schedule "A" attached
Balance due on sa~lngs account ......................................
Certificate of'deposit No-~ issued by Seminole 0ounty Bank, Sanford,Fla
Certificate of Deposit No--- issued by Seminole County Bank, Sanford, Fla
Liberty bond Certificate of Deposit No~-issued by Seminole County Bank
Sanford, Flor~da,-----~ ......................................
Accrued interest on ..................................
Christm~s Savings Club- ..................................
Cashier's ~heck issued by Seminole County B~nk, Sanford, Florida .......
Certified check issued by Seminole County Bank, Sanford, Florida. ......
Unpaid Draft No-----issued by Seminole County Bank, Sa=ford Florida ....
Unpaid draft No-----issued by Seminole County Bank, S_~?eord, Florida---~
to one-half of moneys of the City of Sanford, Florida aggregating
$2S,S~6.~ on deposit with 8anford Bank & Trust Company at the time
Sanford Bank A Trust Company was taken over by 'Seminole County Bank
and First National Bank, as per schedule "A' attached.
Total
Ail of which is due and payable to City of Sanford, Florida alone, it having given no en-
dorsements, transfers, or assignments of the sa~, or any part thereof, and affiant says that
there are no set-~ffs, counter claims or other legal or equitable defenses to said claim or
any part thereof, and affiant further says that said bank holds no note check, draft bill or
exchange, or any evidence of indebtedness against said City either as maker , endorser,
curity , g-,~eantor, or otherwise, except as follows: as referred to inschedule
Seal'
E F Housholde~, ..
As Mayor and ex-officio Chairman of the
Board of Bond Trustees of the City of 'l
Sanford Florida.
18worn to and subscribed before me this 2nd day of August A D 1928
iWitness my hand and official seal, this 2nd day of August A D 1928.
~ V Shiu~
-Notary Public , State of Florida,
My Commission expires 8/2~/2~
To be sworn to before a Notary Public.#
420
CITY COMMISSION, SANFORD, FLORIDA,.
MINUTES
Adjourned Session August 2,
SOP~ULE "A"
CITY OF SANFORD FLORIDA.
IN AO¢0~T WITH
SANFORD BA~;X & TURST 00MPANY
To moneys payable to the City of Sanford, Florida
BANE & TRUST ¢0MPANY in the following accounts, on August 5, 1927.
Bond trustees~ City of Sanford Florida.
Balance on Deposit
City of Sanford Florida, Ordinary Fund.
L R Philips.
Balance on Deposit
City of Sanford, Florida
Balance on Deposit
Savings Department Bond Trustees,
City of Sanford, Florida, Forrest Lake.
C J Marshall and S 0 Cb~ee
on deposit with the 8ANFORD
2,621.bl
12.53
Savings Department City of S~fford
Florida, L R Philips, Auditor and Clerk. 74.22
Total ...... 2~,$56.~9
SOHEDULE "Be
There are outstanding divers paper writings purporting to be time warrants, demand
warrants, certificates of indebtedness, and other purported evidences of indebtedness
executed by divers persons purporting to act a officials of the City of Sanford, Florida,
payable to the Seminole County Bank , or its order. Some of these purported evidences
involved
of indebtedness are now actually/in pending litigation, which m~y determine the validity
or invalidity thereof as legal obligations of the City of Sanford, Florida.
Others of said purported evidences of indebtedness are now under investigation by the
Said City of Sanford Florida with a view Zo determirAng whether or not the City of Sanford
Florida will recognize the validity thereof.
With reference to all of thepaper writings weferred to in this schedule, the fore-
going claim is filed without prejudice to any contentions which the said City of Sanford,
Florida has heretofore made or may hereafter assert with reference to the validity or
invalidity thereof. If, however, either by voluntary action of the City of Sanford, Florida
or by Judgment or decree of a court of competent Jurisdiction any of the said purported
evidences of indebtedness are hereafter admitted or adjudged to be legal obligations of the
said City of Sanford, Florida, then insofar as the same may bring about credits or off-sets
shall hereafter be items deductible from the gross amount of the claim herewith filed.
After a thorough discussion of the matter, Commissioner Frank L Miller made the
motion, which was unanimously adopted, that E F Rousholder as Mayor of the City of Sanford
Florida be, and he is hereby authorized and empowered to sign said proofs of claim and to
verify the same in his name as Mayor of the City of Sanford, Florida for and on behalf of
the Municipality of the City of Sanford, Florida, as its act and deed and to file said
proofs of claim, when so properly executed, with E H Ashcraft, taking from the said Receiver
a property receipt therefor.
There being no further business the meeting adjourned to meet again at 2 O'Clock