Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-03-21
THE RECEIVERS BILL.


An act to enable municipal corporation
having more than IS. 900 inhabitants
to settle their indebtedness:
Section l.. Be it enacted by the gen
eral assembly of the State of Tennessee
That section "a Of an act passed Marcel
20, 1875, chapter %, which reads
That the legislative powers OF suct
cities shall be vested in a mayor, board
Of mayor and aldermen and a board o.
common ~councilmen, who together shal
be styled the general council Of such
cities, and shall be elected as shall be
hereinafter provided" be and the samt
is hereby repealed
Sec. 2. Be it further enacted, That the
power TO levy taxes Of every description.
aud for any aud every purpose whatever
is taken away from said municipal cor
porations and each and every officer
and representative thereof, and said tax
ing power Is hereby lodged in the legisla.
ture Of the State, aud not elsewhere.
And that by virtue Of article ii, section
9 Of the State constitution, the Chsncery
Court for the city of Memphis, and other
municipal corporations containing more
than IS. 600 inhabitants, may appoint a
receiver and exercise such other powers
as are herein set forth.
Sec. 3. Be it further enacted, That
upon the application of any person OF
persons who are the owners and holders Of
any past due and unpaid bond, coupon or
other Indebtedness Of said municipal cor.
porations, not less in amount than one
hundred thousand dollars, it shall be the
duty Of the Chancery Court to appoint a
receiver for said municipal corporation,
who as the officer of the court, and not
otherwise, shall. under the orders and in
structions of the court. act for said mu.
| nicipsl corporation.
Sec 4. Be it further enacted, That said
receiver, together with two other citi-
zens and property.holders Of said cor.
poration, to be appointed by the
court, shall constitute q commission to
settle and compromise the indebtedness
Of said municipal corporation by fund.
ing the same at a rate not exceeding
6fty Eve cents on the dollar on judg-
meuts, and not exceeding fifty cents on
the dollar fer bonds or coupons past due,
and ct a less rate for the lees valuable
classes of said Indebtedness, aud upon
this action being confirmed By the
court tie court shall direct the
receiver 10 execute the necessary
and proper compromise bonds and con.
tracts, which bonds, when SO executed,
shall to all inients and purposes be toe
valid and binding obligations Of said cor
~poraisns; but il is understood and agreed
that the holders Of sEy Of tie bonds
issued by the receiver, as provided in this
act, shall have the option after two years
70 iund and exchange them at par into
SIX per cent. currency bonds maturing
10 thirty years, and that said bonds shall
be Of the denomination Of $1,000, and be
numbered c~onsecutively from | to 25OO,
aud the amount issued shall not exceed
81, 800, 900.
Sec. 5. Be it further enacted. That in
order to enable said commission to make
a settlement Of said municipal indebted
meas IS herein contemplated, it is hereby
enacted,
l. That all matured bonds and cou
pons and judgments and al paving tcriI
certificates issued by said corporation
and all receipts for money paid By tax
payers to paving contractors for making
the Nicholson and stone pavements, etc
by virtue Of any contracts With said cor
poralion may be funded at such a rate
not exceeding the maximum above men
toned, and into such time-bonds, beariDl
not exceeding six per cent. interest, g.
may be agreed upon between the partie.
the holders and said commission.
2. That all matured bonds aud cou
pons issued by virtue OF any agreemen.
made in pursuance of this act, shall b,
receivable for any and all taxes, cit,
dues and Indebtedness Of every kind
3 That said municipal corporation
are hereby prohibited from issuing scriJ
at any time, OF bonds, while any bond
issued under this act are outstanding
except such as may be Issued 10 ex
change, as hereinbefore provided 10 sec
ton 4 OF this act.
4. That hereafter for said municipa
corporations there shall not be levied {
higher rat. Of taxation Tor general pur
poses, as defined IN the charter, than on,
per cent. for the next FIVE years, and a
no time thereafter for said purposes a ia,
exceeding one dollar and twenty.hvt
cents on the hundred dollars.
8. That en- ample interest aud sinkin,
fund tax shall be levied annually, aut
/ collected TO meet the maturing interest
and to retire and pay off the bond
issued under this act; and that this Ia,
shall be faithfully applied to the object
{ proposed; the sinking fund tax shall b
paid into the hands o. sinking fund cor
D m%issioncrs, and the interest tax shall b
paid into the hands Of three interee
commissioners. Each and all Of sal
j sinking fund and interest fund COMM.
S sioners shall be appointed by the cou,
aud shall be citizens OF established il
tegrity and responsibility, who shall Civ
bonds in sufficient amounts to cover ID
u funds coming into their hands, aud I
take on oath to faithfully and honestl
execute their trusts said bonds to
y fixed by the court.
; G. That the provisions Of this act ma
J. be made o part Of the contract with III
f holders Of any Of the bonds aud coupon
issued by reason Of any agreement mad
0 under this act.
That so much of sections 38, GO, {
J and &C, Of an act passed March 20, 1871
chapter 81, and all other laws in conf,
: with the provisions Of this act, be and Ii
same are hereby expressly repealed.
u Sec 6. Be it further enacted, Thl
: the court shall appoint the interest an
+, sinking fund commissioners, and suppl
= all official vacancies as they may occur i
!, the different municipal department