The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1868-04-16
Ube DUH Gut Gitp,
Laws or1OwA. (

Ugf galg 0me Wng..
LAsss or1OySA.
Published by Authority.
enarrsn eli ses
ANACT 20 enable municipal ard psbhc corpora.
fions ut theft election to SETTLE adjust and com
pound their indebtedness, and to provide fol
the issue of new Bonds, and for the payment Of
such new Bonds by the levy Of specific taxes
~ e. .as gs apss . Altering 'd -'.d.s
sEcTIos J. Be II e~seted By the Geaerui A.
ssmbty IF tho State Of Iora, That municipal and
pnhhe cerpontious, including citie1, tbwhs aAd
counties, are hereby authorized 70 fsttle, adjust
and eomponnd drbu owing b. Or claimed agains.
them, evidenced by the bonds o. other prruiisory
instrumeafs III such corporations and sdeh eetpo-
rations, upon such settlement and composition,
hereby authorized 10 issne new bonds in the
place OF the v.dpr lgraeT bande, and such bonds
shall be legal and valid to all intenfs and purpo-
ases and no cooperation issuing such new bonds,
snail be allowed to piend IN defense thereto any
matter which might have been pleaded Ia de
feuse ofthe old or former bonds, Prarided, that
no compromise shall be made without hrst sub
hitting the aaestion whether sueh compromise
shall be made the people, and shall be by them
authorized by majority Of the rioters.
This act il Intended to apply only to cases where
cities, towns and counties hare heretofore issued
bonds or secutitic. for money on nccoont Of any
subscription to- the capital stock Of any railroad
company or on account Of, o. in aid Of any pub
lie improvement, and tho same remain entstand-
ing, and any alleged debt arising therefrom re-
mains unpaid. Bat thisset 10 limited to the set.
Element OF bonds and securities heretofore issued
and outstanding at the time Of the pAsssgs and
approval hereof; that is to cay, the power herein
to settle adjust and compound debts il given,
with respect to debts already exis,ipe and 10 en-
able the sebtor corporations to settle the same in
accordance with tha provisions Of This act.
And nothing herein contained shall be eonstru-
ed TO give the holders Of existing bonds or seen
r.,ies The right TO compel the debtor corporation
10 issue such new bonds, to settIe, in the ab
sensa of M agreemsnt on its part to do so. And
nothing herein contained shall be construed to ie
galize or render valid, binding, or In any man
ner to affect existing bonds or evidences of in
t,abtedness Of any character contemplated in this
act
This act applies to counties, and to cities and
towns whething acting under special charters OF
under the general incorporation law.
New bonds issued by virtue hereof shah in no
eass be FOR greater sum than the principal and
accrued eareed interest unpaid on the bonds or
deb,s, in place of which, q. to pay which, they
shall DO given, nor bear greater rate of interest
than seven per cent per annum, which interest may
be made payable ut New York, N. Y, or at the
atseasury Of the corporation and such new bonds
shsn show on their face that they issued IN
der this act and # so agreed, may provide for the
annual payment Of five per cent OF the principal
thereof, in addition TO TIE annual interest, until
said new bonds are fully paid. Said nav bonds
shall be made payable at the treasury ofthe cor
poratan, shall be Cancelled when paid, and de-
strosed in the presence of the Council or Super
yisors who shall cause 10 DO kept register Of al
new bonds issued and all coupons or bonds which
are cancelled and destroyed, Such new bonds
may be in such form. for such amount not exceed
ing principal and interest then due the old
bonds or securities, and upon such time not ek-
ceeding twenty ssc years, as may be agreed upon
with the holder or owner. Such bonds shall
only be signed in open session, register shall be
kept thereof, the bonds at once delivered to the
treasury Of the city, town county, who shall be
nsbIe on his official bond for the safe keeping
thereof, aad for the psoSseds thereof, until tho
parts herewith under the direction of the Ceun
scii or Board of Supervisors. t&
sFc. 2 The Council or Trustees of incorporated
towns or cities, or the Board Of Supervisors of
counties are hereby invested with fall power to
tin3 their respective corporations by settlements
made pursuant 10 and in virtue Of this Act But
tbev are directed and required before any such
settlement shall be entered upon TO ascertain toe
whole amount due BY such debtor corporation.
and they are invested with power to ascertain th.
In suoh way and manner az they mar deem best.
And the holders Of existing bonds stall, Ii rsaair
ed 6s publis proalamatioaof the Hoard Of Saper
visgrs or fruner Eity or Town Council, and as
,hcrsin ,.anired, present their bonds to the prop
ar Clerk of tie oeup." city or town, and allow
such Clerk TO make a register of such pvs sfow
ing 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 tie same shall be actually produced
and sasrendered, Or ests iished BIZ the Judgement
of q competent court. 1T elects 70 act hereun-
Il he ifrst uS Drr mi llvi fs 19e
efning hpds, slsali appoint not less than THREE
nlore thaa Il &c oi tscitiseas sgard Of COMMITS
siouers tn execute The wefs and duties feaui ed
Nv ih,. act oE which ABaafd OF COMMISSIONERS he
Mayor al the gity or town, or the chairman If the
B9arior SUI esvlFars stdii he n offffs member !;
hat no act OF the Board Of Commissioners aud
iting Or allowing bombs 81 debts, or in settlement
thereof. 81 all hinafbe corporation nntit such net
II reported IL the proper governing body Of the
corporation and approved by II. And said Board
G. Commissioners snail keep record of their acts
and dpings, which shall at all times be open TO
public inspection. And the city, town or county
corporation shah likewise keep record of all Its
sets and doinss in the premises, which shah also
be open 10 pusse inspection.
see s. II new bonds or obligations issued
pursuant TO the po.er given by this act, the said
corporations named 10 the Grst sectian hereof are
hereby authorized. at the time thes make heir an
paai levy Of general taxes for general revenue, to
appropriate snd sst apart for The ensuing year,
iar givsn number II yasFs, specific portian Or
percentages Of the general tax 50 ieried to pay or
apply on the ncN bonds herein authorized, and on
sech portion Of the principal, if any, has, been
acteed 10 he paia each ynM. When thus appro-
pristed (which may be sy ordnance contract or
resolution the amonnt thus appropriated shall be
specifically applied 10 the purpose above named,
and sha Il be diverted 10 used for any other
purpose and shall not be liable to be attached gar
nisheI s,fred or taken on execution, by any cred
itor OF she corporation. and such appropriation
shall be to all int.nts and prrposefN mortgage tr
pledge for The portion per centage thus nppro
pfiafed in favor Of the parties holding sueh new
bonds.
The current expenses of the operation must be
paid out of the yearly or annual general revenue
mot rfus specifically pledged.
If the general revenue thus set apart and
pledged is not sufficient TO pay the interest and
principal If any. of the bonds issued by virtue
hereof, the gov erning body shalt levy specific
tax as provided herein 50 aicient to supply the
aetiaieney provided for by the portion Of gen
era revenue TINS set apart and pledged.
And II shall not be 10 the power of any creditor
bv any process suft, judgement or other wise to
obtain lien, right orprierity upon or te ssft
general fund, 50 as to prevent the Corporation
teom thus appropriating, or setting apart, Of
pied cling snch portion Of its general revenue il
not necessary for ths payment Of its current ex-
penses-
II for any reason The revenue raised any one
wear shall not be fully stuff cicnt pay the inter
est or aIy part Of the principal of the new bond.
falling due arr given year specific levy to pay
such deficit shall be included in a levy for next
year. Ii there ia q surplus of the specific levy
for any cne Jesr sue hsnrplus shAlIhe exclusively
applied on the bonds herein authorized to be is
xuea.
sEo.4 II new bonds or obligatioasare issued
pursuant TO the power given by this act, the cor
porations named Ia the LIST Section thereof ars
hereby authorized, and 1t is hereby made the duty
Of the governing body Of said corporations pro
vide Annually in the manner herein prescribed 70
the paynscst.o of the liz tesest Of such new bonds
and such portion of the principal, if any, as ha
been agreed to be psid.cach rear.
When any portion OF the generaltax is appro
prlatsd and set apart provided for in Section
of this act. or when any specific additional tax 4
levied nnaer the provisions Of this act, the sam,
shssl be iran that time forward q specific tax 70
The pysrdse o. applying on or paying said NEE
bonds Or Ac interest thereon. and for 10 olhe
purpose, and neitber said taxes nor the none,
raised ,issashy shall ever be diverted or usea 10
any other object purpose until the whole Of Ii
en;nptosnis e bonds issued usde1 the prosisicns Q
this act are paid in full, both principal and inter
est Nor shah the money raised, or tbe pro
eeels Of new bonds acquired 10 settle and pay tt
ola bonds or debts. or be subject to attachment
garnishment levy, or appropriation BY tie bold
ers nj delss or judgments against the corporation