Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1872-07-05
OFFICIAL.
SINKING FUND ORDINANCE.
h AN ORDINANCE ada
To Establish Permanent Sinking
Fund for the Payment OF the Bonded
Debt Of the City Of Memphis.

31t ll -
Be i ordained by the General Council of the
Section !. That there shall each year, be-
ginning with the forty-fifth corporate year
(lS72) ut the same time and in the same man
ner that other taxes are laid and collected, be
laid and collected special tax of twonty cents
on each one hundred dollars worth of taxable
property in the city of Memphis, for the sole
and special purpose of creating q sinking fund
TO be used only in retiring the bonds OF the
Sec. 2. That the said tax shall be collected
in money, and shall be kept separate and dis
tinct from all other taxes, and separate ac-
coust thereof shall be kept by the Tax Collec-
tor, and no part thereof shall be used or paidOyer
except in the manner hereinafter prescribed.
Sec. 3: Immediately after the passage and
approval of this Ordinance, i shall be the duty
Of the Mayor. by and with the consent of the
General Council, to appoint three sinking
fund commissioners, who shall hold their Off
ces respectively for the term of three years and
until their successors are appointed and quali-
fed; provided, that the sinking fund commis-
sioners first appointed under this Ordinance
shall hold their Office respectively for the term
Of one, two and three years, and until their
successors are appointed and qualified. And
as soon after the appointment of the commits
sionors first to be appointed under this Ordi-
nance, as may be convenient, they shall assem-
BILE and organize, and shall thereupon deter
mine by lot, in such manner as may be
number ehall go out of Office at the end of one
year, which at the end of two years, and
which at the end of three years, and each of
the said commissioners shall hold his Office
for the term that may be so designated.
Vacancies in Office, OccasiOned by the ex-
piration of the term of appointment, or in
any other way, shall be filed by the Mayor,
by and with the consent of the General C0un-
ell, as above provided.
See. 4. Each Of tho sinking fund COM
missioners shall. before entering upon his
office, axe an oath faithfully to discharge the
duties of the same. and shall enter into a bond
TO the city of Memphis. with two or more good
and sufficient securities, to be approved of by
the Mayor. the City Attorney and the Presi-
dents Of the Board of Aldermen and Common
Council, in the penal sum of $5O,OOJ, condl-
toned that he will faithfully keep, apprOpri-
ate and account for all the mon eys and prop
erty that may come TO his hands by virtue of
his office, according TO the requirements OF
this ordinance. and will in all other respects
well and truly perform his duties as sinking
fund commissioner during the term of his
Office. The said bond, with the approval of
the same indorsed thereon, shall be deposited
with the Comptroller and remain record of
his Office.
sec. 5. Any sinking fund commissioner fail
ing to comply with the provisions Of this ordi-
office by vote Of the General Council, two
thirds of each branch asserting thereto, and
the Mayor approving the removal,
Sec. 9. The Tax Collector shall pay over
all the taxes that may have been collected by
him during the preceding month on account
of the sinking fund tax, and SHALL take from
them duplicate receipts therefor, one Of which
he shall file in the office of the Comptroller,
there TO remain, and shall report to the Gen
eral Council monthly the amount he has paid
them for the month.
Sec. Z. The Comptroller shall open an ac-
count with the sinking fund commissioners,
and shall from time to time charge them with
| the amounts paid to them by the Tax Collec-
tor, as shown by the receipts filed, and shall
credit them with. the amounts paid out in the
purchase of the bonds of the city purchased
by them, as hereinafter directed. We shall
also charge them with the interest on such
bonds of the city as they may purchase from
time to time, as said interest falls due,
Sec s. As soon as the sinking fund COM
missioners shall receive from the Tax Collec-
tor sufficient sum, and from time TO time
thereafter, rs they may receive other sums,
either from the Tax Collector or as interest
oK the bonds purchased as hereinafter prOvi-
ded. they shall invest the same in the pur-
chase of a bond, or bonds of the city, not yet
matured, at the lowest price at which the
same can be purchased, for the account of
Sec, 9. At the end Of each month the sink
ing Fund Commissioners shall make q writ
ten statement to the Comptroller. which all
of them shall sign and swear to, in which
they shall show the amount of money received
by them during the month on account of the
sinking fund. the amount they have invested
in the purchase of the bonds of the city, the
price at which they purchased the bonds, and
the numbers, dates and Issues of the bonds
purchased. and the amount of money belong
ing TO the sinking fund remain ing in their
hands; and the said statement shall be filed
and remain in the Office of the Comptroller |
At the time of making the said monthly |
written statement, the sinking fund commits |
sioners shall produce to the Comptroller all
the bonds of the city they have purchased up
to that date, with the coupons belonging |
thereto. and the Comptroller in their pres
ence shall cause to be stamped on each bond |
and each coupon these words: /" Blonging to |
the sinking fund Of the city of fMemphis," and |
at the same time shall cancel the bonds and |
coupons produced. so as TO prevent their flu |
ture negotiation. and before returning the |
bonds so stamped and Cancelled to the sink |
ing fund commissioners, he shall record the
same in book to be kept by him fer the pur-
pose, giving number, date of issue. and date |
Of maturity OF each bond.
Sec 10 The Sinking Fund Commissioners /
shall retain each and every bond purchased by |
them, after being cancelled and stamped as
aforesaid, until its maturity; and in the mean
time shall collect from the City Treasurer OF
other person paying the same, the coupons on
the said bonds so purchased from time TO time,
us they respectively mature, and shall apply |
the money so collected in the purchase Of other
bonds Of the city in the manner before directed
in reference to the money received of the Tax
Collectors. As soon as the bonds themselves
mature the Sinking Fund Commissioners shall
file them in the office of the Comptroller.
Sec. II. No bond or coupon, after being
purchased by the Sinking Fund Commission
ers, shall be valid in the hands of any other
person, but shall be deemed TO be cancelled
and paid, and the City Treasurer and every
other officer and agent Of the city is hereby ex-
pressly prohibited from paying ary such bond
or coupon, except 10 the Sinking Fund Com
missioners as aforesaid. and IL any Tax Collec-
tor, or officer, or agent. pay any such bond or
coupon 10 any other person the payment shall
not be allowed him as 0 credit. And the Trea-
surer, or ofieer, or agent, OF the city, paying
any such coupon. is hereby required TO cut the
same from the bond to which il belongs at rhe
time he makes payment, and the Sinking Fund
are herooy forbidden to sepa-
rate the coupons from the bonds for any pur
pose whatever.
See u. II shall be the duty Of the Comp
tr0llcr to report promptly TO the General Coun-
ell any failure of the Sinking Fund Commis-
siOncrs TO comply with the requirements of this
ordinance, and also any breach ef the pro-
visions of the same, and the Mayor shall I'M
cause such action ~ he taken rs will
secure the rights Of the city In the premises.
500. IL. The compensation OF each Conn
missioner herein provided for, during his con-
tinuance in office such. is hereby liked at
$50 per annnm. payable quarterly at the ex-
piration of each three months.
Passed second and final reading by Board Of
June .. lS72.
Passed s2seHd aEd anal reading by Council
: Hpprovod June p, 1872.
Attest: yNO. JOHNSON, Mayor.