Municipal improvement districts organized under the laws of Arkansas are empowered to issue bonds and to mortgage benefit assessments as security therefor. Street Improvement District, No. 513, of Little Rock, Ark., acted under the power thus conferred. On July 1, 1930, it issued bonds, payable to bearer, in the amount of $31,000, and made a mortgage to a firm of bankers as trustee for the bondholders. Accompanying the mortgage was a copy of the assessment of benefits stating in detail the amount of benefits assessed against each piece of property within the improvement district. Some of the bonds were in default on January 1, 1934, for nonpayment of principal and interest. This suit was brought by the trustee and also by representative bondholders to foreclose the assessments upon the lots of delinquent owners and for other relief. The right to maintain the suit is undisputed. The controversy hinges upon the terms of the decree.
At the execution of the bonds and mortgages, the statutes of Arkansas contained provisions well planned to make these benefit assessments an acceptable security. Under the statutes then in force, lot owners had thirty days for payment of assessments, the time to run from the date of a notice required to be published by the collector. Crawford & Moses' Digest, § 5671. If payment was not made within that time, the collector was to add a penalty of 20 per cent., and make immediate return of delinquents to the Board of Commissioners. Section 5673. The duty was then imposed upon the Commissioners to bring foreclosure suits at once. Section 5674. In case of personal service, the defendant was to be required to appear and respond within five days after service. Section 5678. The decree when granted was to add to the assessment the 20 per cent. penalty, costs, and attorneys' fees. Section 5678. In case of constructive service, publication was to becompleted within fifteen days, the cause was to be made ready for hearing within fifteen days thereafter, and a decree was to be rendered as in case of actual service. Section 5679. If the sum adjudged was not paid within ten days, the property was to be sold upon twenty days' notice. Section 5684. The property owner was given time to redeem upon payment of the purchase price, with interest at 10 per cent. if the land had a rental value, and if it had none, then with interest at 20 per cent. Section 5644. The time for redemption was either two years or five; there being uncertainty in that respect as to the meaning of the statute. In any event, the purchaser was to be let into possession at once upon the approval of the sale, and was not to be accountable for rents upon redemption. Section 5642. If there was an appeal from the decree, the Supreme Court was to advance the cause upon its docket, and give a hearing and decision at as early a date as practicable. Section 5686. The transcript was to be filed in the office of the clerk within twenty days after the rendering of the decree appealed from (section 5687), and no appeal was to be prosecuted if that condition was not fulfilled. Section 5689.