Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-03-10
THE STATE DEBT.
An Act Looking to Efs Compromise
and Settlement

Following is full text of bill
which has been introduced in the
house of represer tatives at Nashville
by Hon. r. r. Butler, of Carter
county;
AN ACT to compromise and settle
the bonded Indebtedness of the
State.
Section l.. Be it enacted by the
general assembly Of the State Of
Tennessee, Tbat all the legally issued
bonds of the State of Tennessee, and
all outstanding and unpaid coupons
thereof, up to and including those
falling due on the first day Of July,
1881, may be funded at the rate Of
sixty cents on the dollar, upon their
face value, in coupon bonds of the
State, bearing interest at the rate of
6 per cent. per annum, and dated
on the first day Of July, 1881, the
interest payable semi-annualfs on the
first day of January and July of each
and every year at Nashville, Tenn,
and IN the city of New York, at
such place in said cities as the treas
urer of Tennessee may designate by
advertisement in one or more OF the
leading newspapers of said cities,
giving twenty days notice Of the
same in said papers.
Sec. 2. Be it further enacted, That
said bonds shall be known as the
compromise bonds of the State Of
Tennessee" and shall not be due until
the first day Of January, 1922, but
may be retired by the State at any
time after the first day Of January,
1887, by the payment of the prlncl-
pie and interest.
Sec. 3. Be it further enacted, That
said bonds shall be in denominations
of $50, 800, $500, and = $1,000. That
is, there shall not be less than 5
per cent. of the whole amount in
bonds of the denomination Of fifty
dollars; 5 per cent. Of the denOmi-
nation of one hundred dollars, and
10 per cent. Of the denomination of
five hundred dollars, the remainder
to be of the denomination Of one
thousand dollars Ito be pro-
rated by the funding board,
hereinafter provided as said hoard
may deem just and equitable
between those who may present
their bonds and coupons to be
funded under this act. But the
funding board may issue bonds Of
the smaller denomination aforesaid,
to any amount in excess Of the
amounts heretofore stated, if the
holders. of the bonds and coupons
who present them to be funded SO
desire
Sec 4. Be it further enacted,
That the secretary of State, comp
troller and State treasurer shall con-
stitute a board to be designated a
funding board, any two of which
shall constitute a quorum for the
transaction Of any and all business
for which said board was crea ed.
Said board may sit or hold meetings
for the transaction of the business
created by this act, at such times
and places as they may deem wise
and proper to enable holders Of
. Tennessee bonds and coupons to
fund the same under the provisions
of this act.
Sec. 5. Be it further enacted,
That when any of the legally issued
bonds of the S ate, or coupons out
standing and unpaid are presented
to said funding board for fund ng
under the provisions of this act,
they shall examine and audit the same
and, if found to be genuine, shall
prepare a compromise bOni or bonds.
as may be necessary for the purpose,
and when said bond or bonds have
been signed by the governor and
countersigned by the secretary of
the State, and the great seal of the
! State of Tennessee is affixed thereto,
and the original bond or bonds have
been registered in the comptroller S
office and a full memorandum of the
same made by the comptroller, and
the same signed by the party receiv,
ing the compromise bond or bonds,
SAID board shall deliver said com
promise bonds to the party entitled
to receive them, taking full and
: ample receipts therefor from the
party SO receiving. But in funding
| under the provisions of this act, tn
l S ate shall not receive or account fol
| any portion of a bond or coupon in
excess of the bond demanded, and il
the amount of the bond or coupons
presented to be funded be less by a
fractional part Of coupon, the
: party applying may pay the same il
currency.
Sec. 6. Be it further. enacted, That
as soon as practicable after the
l passage of this act, there shall be
prepared, under the directions of the
governor and the funding board, a
) sufficient number of well-engraved
bonds to take up and fund ali the
unpaid bonds and coupons of the
State, and upon each coupon Of the
bonds so prepared, the signatures OF
the treasurer and comptroller shall
, be engraved, and the said coupons
| shall be numbered with the number
of the bond to which they are att
: tached, and shall state on their face
when they fall due, and the amount
OE ,4I-, I IL Il