Cedar Falls gazette. [volume] (Cedar Falls, Iowa) 1860-1895, 1868-05-08
CHAPTER 67.


AN ACT to enable municipal and
public corporations at their election
to settle, adjust and compound
their Indebtedness. and to provide
for the Issue of new ponds, and for
the payment of such new bonds by
the levy OF specified taxes, and for
this purpose altering and amend
ing existing charters and laws.
SEC. 1. BE a enacted By the GEN
erdl 1ssen,biy of the State of Iopa !.
That municipal and public corpora
tions, 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
promissory instruments of such cor
porations; and such corporations,
upon such settlement and compost
tions, are hereby authorized to issue
new bonds I'm the place of the old or
former bonds, and such new bonds
shall be legal and valid to all intents
and purposes and no corporation is
suing such new bonds shall be allow
ed to plead In defense thereto any
matter which might have been plead
ed I'm defense of the old or former
bonds, provided, that no compromise
shall be made without first submit
ting the question whether such COM
promise shall be made to the people,
and shall be by them authorized by a
majority of the voters. ~ "a
This act Ia intended to apply only
to cases where cities towns and ceun-
tics have heretofore issued bonds or
securities for money on account Of
any subscription to the capital stock
of any railroad company, or on ac-
count of, or In aid OF any public i'm
provement, and the same remain out
standing, and any alleged debt aris-
ing therefrom remains unpaid. But
this act Is limited to the settlement
OF bonds and securities heretofore is
sued and outstanding ut the time OF
the passage and appr0vnI hereof; |;
that Is to say, the power herein CIV
en- to settle. adjust and compound
debts Is given, with respect to debts
already existing, .and to enable the
debtor corporations to settle the same
In accordance with the provisions 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 corpora
tion to issue such new bonds, or to
settle, in the absence OF an agree
ment on its part to doso. And moth
ing herein contained shall be con-
strued to legaiize or render valid, or
existing bonds or evidences of In
"a ~ M
plated In this act. .n
This act applies to counties, and to
cities and towns, whether acting un-
der special charters or under thegen-
eral Incorporation law.
New bonds issued by virtue hereof,
shall in no case be for 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 OH their face that they are is
sued under this act, and IL so agreed
may provide for the annual payment
of five per cent. of the, principal
thereof, In addition to the annual In
terest, until said new bonds are fully
paid. Said new bonds shall be made
payable at the treasury OF the corpo-
ration. shall be Cancelled when paid,
and destroyed in the presence OF the
Council or Supervisors, who shall
cause to be kept n register OF all new
bonds issued, and all coupons or
bonds which are cancelled and des-
troyed. Such new bonds may be In
such form, for such amount not ex-
ceeding principal and interest then
due on the old bonds or securities,
and upon such time, not exceeding
twenty five years, as may be agreed
upon with the holder or owner. Such
new bonds shall only be signed in
open session, q register shall be kept
thereof, the bonds ut once delivered
to the treasurer of the city, town or
county, who shall be liable on his
ofiicial bond for the safe keeping
thereof, and for the proceeds thereof,
until he parts Herewith under the
direction Of the Council or Board Of
Supervisors.
SEC. 2. The Council or Trustees
Of incorporated towns or cities, or
the Board Of Supervisors of counties,
are hereby invested with full power
to 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, IL required by
public proclamation OF the Board OF
Supervisors or proper City or Town
Council, and as therein required,