Buchanan County bulletin and guardian. (Independence, Iowa) 1866-1869, 1868-06-05
LAWS OF IOWA.
CHAPTER 67.

CHAPTER 81.
AN ACT to enable municipal and public
corporations at their erection to settle, ad-
just and compound their indebtedness,
aud to provide for the issue of new Bonds,
and tor the payment Of such new bonds
by the levy Of specific taxes, and for this
purpose altering and amending existing
charters and laws.
SECTION l. Be it enacted by the General
assembly cfthe Stale Of Iora, That munich.
pal and public corporations, including cities,
towns aud counties, sre hereby authorized
to settle, adjust and compound debts owing
by, or claims against them, evidenced By
the bonds or other promisory instruments
OF such corporations, upon such settlement
and composition, are hereby authorized to
issue new bonds in the place Of the old or
former bonds, aud such new bonds shall be
legal and valid to all intents and purposes
and NO separation issuing such new bonds
shall be SLOWED to plead il defsnse thereto
any matter which might have been pleaded
in defense Of the old OF former bonds, pro.
rided, that no compromise shall be made
without 6rst submitting the question wheth>
er such compromise shall be made to the
people, and shall be by them authorized by
. majority of the voters.
This act is intended to apply only 70
cases where cities, towns and counties 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 out.
standing, ard any alleged debt arising there's
from remains unpaid. But this act IS limits
ed to the settlemen Of Londs and securities
heretofore issued and outstanding at the
time Of the passage and approval hereof;
that is to say, the power herein gwen to set,
tie. adjust and compound debts 10 given, with
respect to debts already existing, and to en>
able the debtor ccrporations 10 settle the
same in accordance with the provisions VI
Ibis set.
OAnd nothing herein contained shall he
construed 10 give the holders Of existing
bonds or securities the right to compel ,he
debtor corporation TO issue such new bonds,
or 10 settle, in the absence OF an agreement
on its part TO do SO. And nothing herein
contained shall be Construed 10 legrlizc or
reLder valid, or binding, or in any manner
to effect existing bonds or evidences Of in>
debtedness Of any character contemplated
in this act.
This act applies to counties, ard citi,
and towns, whether acting under special
charters or undel the general incorpol atiun
law. ,.s-
New bonds issued BY virtue hereof, shall
III no case be for greater sum than liz.
principal and accrued or earned interestua-
paid on the bond or debts, in place of which,
or to pay which, tEcy shall be given, nor
bear greater rste Of interest than sevsn y.
cent per snnum, which interest may be made
payable q New York, N. Y, or at tie
treasury Of the corporation and such new
bonds shall show on their face that they arc
Issued under this act, and il 50 agreed, may
provide for the annual pay ment Of ave nr
cent Of the principal thereof, in addition 70
the annual interest, until said new bonds ere
fully paid. Said new bonds shall be made
payable at the treasury Of The corporation.
shall be cancelled when paid, DESTROYED in
the presence Vt the Council or Supkfvsors.
who shall cause to be kept . register Of ali
new bonds issued, and all coupons or bonds
which are cancelled and d. stroyed. Such
new bonds may be in such form, Er
such amount not exceeding PRINCIPAL and
interest then due on the old bonds or secu>
rites, aud upon such time, not exeotding
twenty i've yes -, a. may be agreed upon
with the holder or owner. Such new bonds
shah en9 be signed HI open sassion, per
lister shall be kept thereof, the bouds a once
delivered 10 ths treasury ol the city, iown
o. county, wAo shah b. liaAls on hn oAleial
bond for the safs keeping thereof, and for
the proceeds thereof, until be parts herewith
under the direction Of the Council o. Board.
Of SHpervisoess
SIC. ,. The Coancl or Trustees Of in
eofporated towns or cities, o. the Boari Of
Supervisors or counties are hereby invested
with full power TO bind their respective cor
porntiGns BY settlements made pnsuant to
and In virtue Of this Act. But shey are dis
rrrtcd and required. before ans sach seiila-
meAf shall be catered upon, to ascertain tas
! @ esa CoxTLSrsD on iysip9.