City of Los Angeles v. City Bank

The 44th section of the city charter of the city of Los Angeles provided a mode by which the funds of the citjr should be deposited in such bank of deposit of the city as would pay the highest rate of interest thereon, etc. (Statutes, 1889, p. 467.)

Pursuant to such section of the charter a contract was, after due notice, on the tenth day of March, 1890, entered into by and between the plaintiff and defendant by which the former appointed the latter the depository of the public money of said city, for the term of one year from the date of the agreement; the city agreed that the city treasurer should deposit with the bank, defendant, the public moneys then on hand and all that should come to his hands during the term. Defendant agreed to pay interest on the deposit at the rate of three-eighths of one per cent per month, interest to be paid monthly and to be computed on daily balances.

The contract was executed by the mayor on behalf of the city and by the defendant. On the same day a city ordinance Avas duly passed by the council and approved by the mayor, appointing the bank the depository of the public funds and directing the treasurer to deposit the same accordingly.

The…