The weekly Ottumwa courier. [volume] (Ottumwa, Iowa) 1857-1872, 1868-04-30

on execution, by any creditor of the
corporation, and such appropriation
shall be to all intents and proposes o
mortgage or pledge of the portion or
thus appropriated in
favor of the parties holding such new
bonds.
The current expenses Of the COR
poration must be paid out of the
yearly or annual revenue not thus
specifically pledged.
If the general revenues thus set
apart and pledged is not sufficient to
pay the interest and principal, if any,
of the bonds issued by virtue hereof,
the governing body shall levy a
specific tax, as provided herein,
sufficient to supply the deficiency not
provided for by the portion of gen.
elal revenue thus set apart and pro-
vided.
And it shall not be in the power of
any creditor, by any process, suit,
Judgment or otherwise, to obtain q
lien, right or priority upon or to such
general fund, so as TO prevent the
corporation from thus appropriating,
or setting apart, or pledging such
portion of its general revenue as is
not necessary for the payment of its
current expenses.
If for any reason the revenue
raised any one year shallnot be fully
sufficient to pay the interest or any
sart of the principal Of the new
bonds falling due any given year, a
specific levy to pay such deficit shall
be included in a levy for the next
year. IF there is a surplus of the
specific levy for any year, such sur
plus shall be exclusively applied on
the bonds herein authorized to be
issued.
Sec. 4. IF new bonds or oblga-
tions are issued pursuant to the
power givon by this act, the corpo-
rations named in the first section
thereof are hereby authorized, and
it is hereby made the duty of the
governing body of said corporation
to provide annually in the mannor
herein prescribed for the payment of
the interest of such new bonds, and
such portion of the principal. if any,
as has been agreed to be paid each
year.
When any portion of the general
tax is appropriated and set apart as
provided for in section 3 of this act,
or when any specific additional tax
is levied under the provisions Of this
act, tho same shall be from that time
forward a specific tax for the pur-
pose of applying on or. paying said
new bonds or the interest thereon,
and for no other purpose, and
neither said taxes nor the money
raised thereby shall ever be diverted
or used for "a ny other object or pur-
pose until the whole of the compro-
mise bonds issued under The pros
visions OF this act are paid in full,
both principle and interest. Nor
shall the money SO raised, or the pro-
ceeds ofnew bonds acquired to settle
and pay the old bonds or debts or be
subject to attachment, garnishmenta
levy, or appropriation by the holders
of debts or judgments against the
corporation unless such judgments
are obtained on the new bonds issued
by virtue Of this act. Money thus
raised shall be kept as distinct fund
to besacredly and exclusively applied
to the sole purpose of paying the
debts Of the corporations as provided
in this act.
If the corporation agrees to pay,
in addition to the annual interest,
some specific portion of the princi:
pal each year, such new bonds shall
be in such form as to enable this to
be done and the amount paid from
year to year to be detached from
the bonds and Cancelled. Said spcifc
tax hereby authorized shall be levied
at the same time that other taxes
are levied, and shall be collected in
the same manner, but nothing but
money shall be receivable in payment
of such tax. And this act shall be
construed as an amendment to the
charter of cities and to the general
incorporation act being chapter 81
of the Revision, and also as enlarg-
ing the powers now given by law to
the counties of the State. But no
creditor of any public or municipal
corporation who refuses to settle or
compound his debt and refuses to
receive and does not receive new
bonds or obligations, shall be entitled
to the benefit of this act, or to the
specific tax levy herein authorized.
| And if the court is satisfied that
there is any invasion or delay in the
performance of this duty on the
part of the corporation, it is hereby
invested with the power, and it is
hereby made the duty of the court
itself to enter an order levying such
tax and to charge its officers
with the duty of collecting it, and
for this purpose they shall have all
the powers, and be substituted in the
place of the corporate officers. And
if judgments are obtained upon such
new bonds or for the interest thereon,
and arc not paid, the corporated
property of all kinds, without any
exemption, shall be subject to seizure
and sale on execution, issued upon
such judgments; the general rove.
nue. of the corporation shall be liable
to pass such judgments, and officers
subject to garnishments.
But it shall not be held to author
ize the levy of any specific or other
tax than such as may be levied by
virtue hereof and for the purposes OF
paying the new bonds herein author
lied. And this act shall not be con-
strued to enlarge the taxing power
of cities, towns or counties as re-
spects old bonds or debts, nor to
validate such bonds or debts in case
they are not adjusted under the pro-
visions Of this act. Its benefits are
designed for and limited to those who
voluntarily make an adjustment I'M
der it's provisions.
Sec. 5. This act shall be deemed
to be a contract in favor Of any
creditor who accepts of all its pro-
visions, and to such creditor or holder
of the new bonds herein authorized
shall be irrepealable.
SEC. 6. The benefits and pro-
visions of this act only apply to
creditors who shall receive new
bonds in settlement of prior debts or
bonds. nor does this net annlv tn