Stanley Forman Reed

“ The complete charter of the Village is not before us. From the authorized power granted by the Public Act of 1909 under which it was organized, however, from the language in section 15 of Chapter XXI of the charter providing for 'an additional pro rata assessment' and from the terms of the bond, limiting its payment to 'the special assessment fund created for the purpose, when the same shall have been collected,' we are satisfied there was no contract to reassess lots once sold for the original assessment. ”

“ As a contract must exist before it can be impaired, and as our conclusion against existence of the contract right settles this case, we feel it proper to consider only whether there was a contract between the bondholders and the Village for an additional assessment on the district property to meet deficiencies instead of undertaking the resolution of the constitutional issue presented by the challenged statutes of Michigan. ”

“ If the stated powers of the Village to levy an assessment on improvement district property required that the lots assessed, after sale for default in their installments, should be subject to an additional assessment to cover such deficiencies, the burden might depress their value to a point where little if anything could be realized for the bondholders, and successful sale for non-payment would be frustrated. ”