Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-03-16
THE FUNDING BILL.


Funding bill as it passed the House. The
amendments Of the House having been
concurred in by the Senate, the bill only re-
quires the Governors signature to become
the law: -.e.-.
Section 1. All outstanding legally issued
bonds of the State, due or to become due,
before the 1st Of January, 1874, and all
past due coupons, aud coupons maturing
on or before the lst Of January, 1874, may
be funded in six per cent. coupon bonds of
the State, TO be STYLED "The New Series Of
Funding Bonds" redeemable at the option
of the State after July /, 1874, and due
and payable on The LIST Of July, 1914, bear
ing six per cent. interest, evidenced by
coupons attached payable semi-annually, on
the first of January aud July in each and
/. every year, from and including the Ist day
of July. 1874, TO the maturity Of the bond.
Sec. 2. When any of the past due bonds
aforesaid, are presented to the Comptroller,
or when $1,000 in past due coupons are
presented, the Comptroller of the Treasury
and Governor shall audit and examine the
demand presented, and if genuine, shall
prepare a bond Of the series ment Toned in
the frs. section of the act; and when signed
by the Governor and cOuntersigued by the
Secretary of State, and registered in the Of
flee Of the Secretary of State, in a well
bound book, and the seal Of the State has
been affixed, and the fuudable bonds or
couponds also registered in said Office, then
the Comptroller shall take full memoran-
dunn Of both bond and coupons so funded,
and cause the same TO be signed by the par
ty demanding the bond, and then after
marking the Issuance of said bon | over
his signature on its face, shall deliver it to
the party applying. In funding, the State
shall not receive and account for any fraction
of a bond or coupon in excess of the bond
demanded. And if the amount presented to
be funded be less by q fractional part Of a
coupon, than the amount of the bond or
bonds demanded, the party applying may
pay the same in currency. 1t shall also be
the duty of the Comptroller Immediately to
cancel such demands so funded, after reg
istering them in a cancelling book, and re-
port the same to the next General Assem-
bly,. In the meantime, be shall submit his
books, with the cancelled obligations, on the
first of each month, TO the Governor, who
shall examine and verify them with the
bonds issued, and certify the same to the
Comptroller, who shall transmit said GER
tificate with his report to the next General
Assembly.
Sec. 3. The faith, honor and credit of
the State of Tennessee is pledged for the
payment of said bonds at maturity, and for
providing sinking fund for that purpose,
and for the prompt payment Of the interest
on the registered bonds hereinafter provided
for, commencing with the interest to fall
due on the 1st day of July, 1874. And it is
hereby made the duty Of the Treasurer of
60 fhat
pose so much of the revenues as may be
necessary to pay the interest on said bonds,
commencing with the interest that falls due
on the 1st day of July, 1874. Provided,
that the coupons of bonds owned or held
in trust by educational institutions within
this stare shall be paid, and not funded /;
those psst due as those not yet due, as they
become due. Ifthoss institutions elect not
to fund their bonds, they shall, neverthe-
less, be entitled TO their interest at maturi-
ty. And provided further, that preference
shall be given to the interest on the school
fund, as provided by law.
Sec. 4 As soon after the passage Of this
act as possible, there shall be prepared,
under the direction of the Governor, q suf-
ficient numoer of well engraved bonds, to
take up and fund the States debt as aGore-
said, with tie coupons attached, and the
signatures of the Comptroller and Treasurer
seugraved on the coupon; the coupon to be
numbered with the number of the bond to
which they are attached. The cost Of the
engraving and preparation of the bonds to
be paid, in the first place, out of the Treas
ury, upon the certificate Of the Governor to
The Comptroller, who shall issue his war
rant therefor. The Comptroller shall be
provided with bond book, containing on
separate pages, regularly numbered, dupli-
cate headings of each bond issued under
this act, with the coupon blanks attached,
regularly numbered; upon which each cor
responding coupon, when iiquidated, after
being duly registered and cancelled, shall
be pasted.
Sec. 5. This act shall not affect the LA
bilities of any railroad, turnpike, or other
corporation, or person, for or on account of
the bonds issued, or loaned, or endorsed by
the State, for internal improvements, or
otherwise, nor any lien in favor of the
State, as against the purchasers Of delin-
Queut railroads.
Sec. 6. The permanent school fund of
the Stae, to-wit: S1,5l2,5OO, heretofore
dedicated to the purpose of common schools
fand free education by the State Constitu-
ton, together with the unpaid interest
lutItOl, 10 tllo III 81 Gay u OdhualJI 4OtOj
shall be funded into one interest bearing
bond or certificate, bearing interest from
first day of January, 1873, at the rate Of
six per cent. per annum, payable semi an
nually by the Treasurer of the State, upon
the warrant Of the Comptroller, drawn as
may be prescribed by law, for the payment
of the school money Of the State. The
Governor shall cause a certificate, or bond
to be issued, and signed and authenticated
as prescribed by this act, for the signing and
authorization Of the funding ponds hereln
provided for; aud in addition thereto, said
bond or certificate shall be executed IN the
name of "Tbe Superintendent of Public
Inslruc ion for the State Of Tennessee. y
and have printed on its face the words
"Tus Certificate belongs to the School
FunC;;" and shall be substituted for and re-