The weekly Ottumwa courier. [volume] (Ottumwa, Iowa) 1857-1872, 1868-04-30
LAWS OF IOWA.
Published bv Authority.
CHAPTER q.

IAN hSl w cHaulc buc iuuHlCIpui
and public corporations at their cleo
ton to settle, adjust and compound
their indebtedness, and to provide for
the issue of new Bonds, and for the
payment of such new Bonds by the
levy of specific taxes, and for this
purpose altering and amending ex-
listing charters and laws.
SECTION 1. Be 1t enacted By the
General assembly of the State of Ioaca,
That municipal and public corpora
tons, including cities, towns and
counties, are hereby authorized to
settle, adjust and compound debts
owing by, or claimed against them,
evidenced by the bonds or other
promisory instruments of such cor
porations; and such corporations,
npon such settlement and compost
ton, are hereby authorized to issue
new bonds in place of the old former
bonds, and such new bonds shall be
legal and valid to all intents and
purposes and no corporation issuing
such new bonds shall he allowed to
plead in defense thereto any matter
which might have been pleaded in
defense Of the old or former bonds,
provided, that no compromise shall
be made without first submitting the
question whether such compromise
shall be made to the people, and
shall be by them authorized by q
majority of the voters.
This act is intended to apply only
to cases where cities, towns or coun-
ties have heretofore issued bonds or
securities for money on account of
any subscription to the capital stock
of any railroad company, or on
account Of or in aid of any public
improvement, and the same remain
outstanding, and any alleged debt
arising therefrom remains unpaid.
But this act is limited to the SETTLE
ment OF bonds and securities hereto
fore issued and outstanding at the
time of the passage and approval
hereof; that is to say, the power
herein given to settle, adjust and
compound debts is given, with respect
to debts already existing, and enable
the debtor corp orations to settle the
same in accordance with the pro-
visions of this act.
And nothing herein contained shall
be construed to give the holders of
existing bonds or securities the right
to compel the debtor corporation to
issue such new bonds, or to settle, in
the absence of an agreement on it's
part to do so. And nothing herein
contained shall be construed to legal
ize or render valid, or binding, or in
any manner to effect existing bonds
or evidences of indebtedness of any
character contemplated in this act.
This act applies to counties, and
towns, whether acting under special
charters or under the general incor-
poration law.
New bonds issued by virtue hereof,
shall in no case be for a greater sum
than the principal and accrued or
earned interest unpaid on the bond
or debts, in place of which, or to pay
which, they shall be given, nor bear
a greater rate Of interest than seven
per cent. per annum, which interest
may be made payable at New York,
N. Y, or at the treasury of the cor
poration and such new bonds shall
show on their face that they are
issued under this act, and ifso agreed
may provide for the annual payment
of five per cent. of the principal
thereof, in addition to the annual
interest, until said new bonds are
fully paid. Said new bonds shall be
made payable at the treasury of the
corporation, shall be Cancelled when
paid, and destroyed in the
presence of the Council or Supervi
sors, who shall cause to be kept q
register of all new bonds issued, and
all coupons or bonds which are can.
celed and destroyed. Such new bonds
may be in such form, for such amount
not exceeding principal and interest
then due on the old bonds or securi
ties, and upon such time, not exceed.
ing twenty-five years, as may be
agreed upon with the holder OF
owner. Such new bonds shall only
be signed in open session, a register
shall be kept thereof, the bonds al
once delivered TO the treasury of the
city, town or county, who shall be
liable ON his official bond for the safe
keeping thereof and tor the proceeds
thereof, until he parts Herewith
under the direction Of the Council OF
Board of Supervisors.
| SEC. 2. The Council or Trustees
of incorporated towns or cities, OF
the Board of Supervisors of counties
are hereby invested with full power
Ito bind their respective corporations
by settlements made pursuant to
and in virtue of this Act. But they
are directed and required, before any
such settlement shall be entered upon
to ascertain the whole amount due
by such debtor corporation, and they
are invested with power to ascertain
this IN such way and manner as they
may deem best And the holders Of
existing bonds shall, if required by
public proclamation Of the Board Of
Supervisors or proper city or Town
Council, and as therein required
present their bonds to the proper
Clerk Of the county or city or town,
and allow such Clerk to make a
register of such bonds, showing their
date, number, amount, maturity and
rate of interest. And no old bond
or evidence of debt shall in any case
be allowed audited, paid or settled
until the same shall be actually pro.
duced and surrendered, or established
by the Judgment Of competent
court. If it elects to act hereunder,
the city, town or county, by its
proper governing body, shall appoint
not less than three or more than five
of its citizens Board of Commits.
sioners to execute the powers and
duties required by this act, of which
Board Of Commissioners the Mayor
of the city or town, or the chairman
of the Board of Supervisors shall be
er ofic,o a member but no act Of
the Board of Commissioners in
auditing or allowing bonds or debts,
or in settlement thereof, shall bind
the corporation until such act is
reported to theproper covering body
of the corporation and approved by
it. And said Board of Commission
ers shall keep a record of their acts