Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-04-12
ACTS OF THE RE,
Published by Authority

AN ACT to authorize the counties Of this
State to issue bonds for certain purposes
under certain sections
Whereas, many counties of this State
now have 81 outstanding bonded indebted
ness soon to mature, and for the payment
of which no proper provision has been
made; and.
Whereas. Various counties of the State
have outstanding bonds which can be re-
funded at lower rate of interest than the
same now bear, Therefore,
Section |. BE it enacted by the general
assembly of the State of Tennes see, That
the several counties Of this State are here's
by vested with authority, acting by and
through their county courts, at regular
quarterly terms Of said courts, to issue
coupon bonds for the following purposes
First For the purpose OF rlasIng money
to raw eff their pres ent bonded IndeDted-
ness. existing on January lst, 1881, as the
same natures Second-For the purpose
Of refuEdiI G any part Of their bonde in
debtedness, existing on January Isl, 1881
at lowe. rate Of interest than the same
now bears.
S C. 2 Be it further enacted, That the
boLdS auth Tized by this act may be issued
in such denominations, and payable when
and where it may seem TO the said county
courts best fitted to accomplish the objects
in view; Provided, however, that such
bonds shall be Issued ia series, with five
years intervening between the maturity OF
each series, so SIS to absorb every five years
the sinking fund hereinafter provided:
Provided further, that no county shalt for
| these purposes isfue bonds for greater
! am unit than its outstanding bond ed in
debtedness existing on January lst 1881;
that no county shall sci! or dispose OF any
| bonds issued under this act at less than par;
| that said bonds shall not bear II greater
rate of interest than q per centum per an
| NUM-: and provided further, that the sew
| eral counties issuing bonds under this act
| shall only issue them N such amounts AS
that the same, or their proceeds, can be
| Immediately applied 10 the purposes herein
designated.
See. 3. Be it further enacted, That the
several counties Issuing bonds under this
act are hereby required to levy 81 special
annual tax sufficient to meet the interest on
said bonds rs said interest natures, and
| the interest coupons on said bonds shall be
| receivable in pay ment of all tax and dues
| to the county, except the sinking fund tax
| hereinattcr provided.
| Sec. 4 Be it further enacted, That the
several counties issuing bonds un0er this
| act are hereby authorized and r, quIred to
! create sufficient sinking fund for the pay
! ment Of the principal of said bonds, as the
same atures, by h levy and col ection of
| All annual tax for that specific purIO>e, to
| be known and designsted as u sinking
| fund tax" Said annual sinking fund tax
shall be of such an amount as that the
same with its accretuns will be suffci' Mt 1T
he end of each five years to pay off the
series OF b 1ndS maturing each i've years
| The power to issue bonds under this act is
! be eby conditioned upon an agrcemer of
! the count es 50 issuing t. comply with the
| requirements If this section rs t. Il SinkiT z
| fu tsX and Of S. ctIOH 3 as to in crest which
| sgret ment will be evidenced by the issuing
of said bonds.
Sec s BE it further enacted, That the
| trustees Of the various count e5 issuing
| bonds under this act shall hold, invest and
| pay cut tie sinking fund herein provide d
| tor Each trustee shall make to the county
| court semi4nr uaI reports rs 20 the amount,
nature and exact condition Of The sink ing
fund In his hands, and he shall invest said
sinking tunu rs fast as it ac,unIula es in
the series OF b nds, for the pay ment of
which the fHnd is being acc inundated, so
far as possible, and in such other securities
| rs the cCun court may from Il :. to time
| direct The trustees of counties lssuiE
| boz DIS under this a sha J. b fore entering
| upon tho duties Of their office, give in ad-
| dl lon to the other boz ds now required Of
| them, q pee al bond IL an amount sutf~
cent and properly cOnditi0hed to- fully
| preserve and protect the sinking fund that
| may come INTO Their hands Said trustees
| for the c re and cu>to of the aid sink
ing fund. said compensation to be fixed by
the county courts.
Sec. 6 Be it further enacted, That any
| fraudulent o" Wiiiul or wrongful act i
| the issuance or the sale If the bonds pro-
vided for under this act, or any missppro-
priatiOn Of the proceeds arising from the
| sale Of said bonds, or airy fraudulent or
willfu!lg wrocg act in the management Of
the sinking fund herein provide fo~, o:
any misrepresentation of said sinking fluid,
| the same is hereby declared a fe ony, and
| the person or persons guilty thereof shall,
on conviction be punio ned by confinement
| in the peEitentiary at hard labor for not
| less than two nor more than ten years.
Sec. 7 Be it further ensct, d. That this
act take eff-ct from and after lis passage,
the public welfare requiring it.
| Passed A pril 2, 1881.
| II. B. RAMSEY,
Speaker of the House of Represantativ
GEO. II MORGAN,
Speaker of the Senate.
nnrovo6 Anil 1891