In the 1975 case Texas v. White, the U.S. Supreme Court was asked to determine whether a bond sale conducted during the Civil War by officials of Confederate Texas was valid. The state of Texas had issued bonds prior to secession and then sold them during wartime under its Confederate government; after rejoining the Union, it sought to void this transaction on grounds that it occurred while part of an illegal entity (the Confederacy). The court ruled in favor of Texas, stating that despite actions taken during rebellion, no state could ever truly leave or be expelled from 'an indestructible Union.' Therefore, any transactions made under an unlawful government were invalid as they contradicted federal law and constitutionality. This decision not only nullified the bond sale but also established important principles regarding states' rights and their relationship with Federal Government - particularly asserting perpetual union among states.

The case Texas v. White was actually decided in 1869, not 1975. In the dissenting opinion for this U.S Supreme Court case, Chief Justice Salmon P. Chase argued that secession had indeed legally occurred and thus the Confederate state governments were legitimate entities during the Civil War period. He contended that when Texas seceded from the Union and joined Confederacy, it ceased to be a state under U.S law until readmitted by Congress after meeting certain conditions set forth in Reconstruction Acts of Congress passed following end of war. Therefore, he believed bonds sold by Confederate government of Texas during war were valid obligations because they represented actions taken by de facto government at time even though its legitimacy was later repudiated when Union reasserted control over Southern states post-war.