Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1881-04-07
CHApTER cxTII

An act in relation to incumbered cities.
Whereas, Some Of the cities in this state are
incumbered with municipal indebtedness to
30 great an extent that the annual interest
thereon payable by such cities, together with
the annual taxable charge upon the taxpayers
OF such cities, amounts to more than can be
readily raised by taxation therein; and where
as, it is expedient that in such cases the gov
erning powers of such cities and their re-
spective municipal creditors should have
power to arrange such settlements as shall be
for the mutual interests of such cities and
their creditors.
1. Be it enacted by the Senate and General
Assembly of the State Of New Jersey, That
whenever any city in this state shall be unable
in the Judgment of the city council or other
legislative body Of such city to raise and pay
the annual charge upon the municipal indebted
ness of such city, which Judgment shall be ex-
pressed by the resolution of such city council
or other legislative body passed by the votes Of
thfee-fourths of the members Of the same II
shall be lawful for such city council or other
Legislative body to issue the bonds Of such city
for such amounts as they may deem ezpedient
not exceeding the total amount of the indebted
ness of such city, which bonds shall be issued
By ordinance Of such city council or other leg
islative body thereof passed by the votes of
three-feurths Of the members thereof, and shall
be applicable for purposes Of arrangement of
such Indebtedness with the creditors of any
such city, and for no other purpose, as herein
after provided.
2. And belt enacted, That such bonds shall
be executed IN the manner provided for the ex-
ecution of the bonds Of such city by any exist
ing law Of this state, shall bear such rate of in
terest not exceeding the legal interest, and be
payable at such une OF times, and be either
registered or coupon bonds, as shall be deter
mined by such city council or other legislative
body BY the votes Of three-fonrths Of the men,
bers shereof
s. And be It enacted, That it shall be lawful
for such city, through the finance department
OF the same, TO exchange such bonds, when 60
issued, for any evidences Of Indebtedness
Of such city held by the creditors thereof.
with whom such finance department may agree
for that purpose, either in whole or in part,
upon such terms Of exchange as shall be order
ed by such city ccuncil or other Legislative
body by resolution of the same, passed by
the votes of three-fourths Of the members
thereof
4. And be it enacted That the annual inter
est OF such bonds as shall be 90 issned and ex-
changed shall be raised by taxation by the
proper authorities Of any such city for that
purpose together with such sum as shall be
levied by such city council or other Legislative
body for application TO the payment of the
principal thereof, if any, such interest and sum
for principal, if any shall be raised by taxa
ton and paid by the proper municipal authori-
ties Of any such city before the interest on any
bonds or other evidences Of the Indebtedness
of such city in existence at the time of the is
sue of the bonds authorized by this act.
5. And be it enacted, That all sums which
shall be SO raised by any such city for the pur-
pose of application to the payment Of the prin-
cipal Of such bonds shall Be invested by the
sinking fund commissioners or other proper Of
fcers for that purpose; and shall not be bor-
rowed by or applied by such city for any pur-
pose except the payment or purchase of such
bonds
s. And be it enacted, That the city council Or
other Legislative body-of such city, by the votes
of three-fourths of the members thereof, may
arrange with any person or persons for a set
tlement of such Indebtedness, and employ such
assistance as they may deem necessary, and
provide for their compensation and thenecessary
expenses attending tho same by tho issue of
bonds under this act or otherwise, in their dis
cretion.
Z. And be it enacted, That all acts and parts
Of acts inconsistent with the provisions of this
act be and the same arc hereby repealed, and
that this act shall take effect immediately
Approved March II. 1881.