The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1883-12-20
PERMANENT SCHOOL FUND.
An Act providi for the Investment OF t
nermanent common scAool fund.


permanent common scAool tuha.
Sror1oN 1. Be it enacted by the legisla.
,nra Of the State of Texas: That the comp
,roIler acting under the direction and su-
nervision OF the board OF education, shall
invest the proceeds of sale OF school lanus
and all other sums OF money belonging 10
permanent school fund, as Is hereinafter
pr vided. Lo odo;,
honda of the United States or OF the State
of Texas, at such times and in such
amounts as may be determined by the
board of education; provided, that no
Drester premium than 20 per cent. shall be
Maid in the purchase of said bonds
SEC. 3. Said fund, under direction o. tine
hoard of education, may be invested IN
bonds of the cities and towns and
counties of this state bearing n no,
e les. nroyided that said bonds
are issued strictly in accordance with law
and the taxes permitted by law to be ley
led in such city, town or county are sui
ficient TO paw the interest and create 2 per
cent. sinking fund for the redemption OF
ali bonds and the requirement OF all debts
Sec. 4. All applications from cities,
towns or couAties TO borrow such iunos
shall be accompanied by a sworn statement
of the mayor or county judge as the case
such CITY, town or county and the charact or
thereof, and also by certificate as to last
asse ssnient of pHG erty for taxes. - :.
Sec 4. None OF 9lese funds shall De IN
vested in the bonds of any city, town OF
countv which has within two years prior
thereto def.ulted in the pay ment OF inter
est or in the bonds OF any city, town OF
comfy whose entire Indebtedness exceeds
s per cent, of its taxable values unless the
bonds be for the purpose OF bniId'ns
COURTHOUSE or jail IN newly-organlzeo
county. nor shall any premium be PAID
for any city, town or county bonds
None of this fund shall be in
invested in bonds Issued by any city, town
| or county tor the purpose OF tunulng
| floating indebtedness created af.er the pas
sage of this act. Whenever the board IS IL
doubt as to the validity OF any bonds, tht
question shall be referred to the attorney
general, and his opinion lied Win th'
bonds.
| to purchase at par all bonds issued by any
CITY, town or cougty, and no such ooho'
shall be negotiable unless first offered ioi
sale TO the board OF education, ana II re-
| fused for want of funds, such endorsement
| shall be made BY the comptroller ON the
honds The board of education shall buy
directly from county or CITY oMeers WIN
out aid OF agent or broker.
Sec. s. The county Judge OF any. county
NAV. under the direction OF majority o
| the commissioners court expressed by.
resolution spread upon the minutes oil th'
court. invest the permanent school fund o
such county IN any OF the securities ABOVE
mentioned, subject to the same conditlon'
and limitations as are imposed In the lore
going sections.
Sec. Q. The county judge Of any. county
may, by resolution OF the commissioner
court, loan any part OF the per
manent school fund Of such county
| to any resident OF the county not related
| by affiaity or coDsanguinlty TO any membe
| OF the court, subject 10 the following cor
ditions and provisions:
Such funds shsll not be loaned in sums
of less than Eve hundred dollars and Tor
| lower rate OF interest than seven per cent
interest or for less time than nve years.
Sec. Z. In such cases IL shall be loane6
on real estate in the county at one-halt IL
market value and secured bya deed o
trust: In addition TO the real eta security
the note shall be signed by two persons, a.
sUreties. each OF whom shall make rffida
Wit that he il worth, over and above all ex
emptions and liabilities, the amount
| such loan. before becoming such security
The county Judge shall advertise ior
least two weeks In some Newspaper put
| ed in the county the amount W W .oa'
and the person or persons desiring TO borrow
sucn money, or any part thereof, snail
some time before the meeting OF the cour
At which said loan Is TO be made seal ant
deliver 70 the county judge bis proposal q
borrow, enclosing q description Of m
nrooertv 10 be hypothecatsd and I'M
names Of his personal securities, anS
the commissioners who snail oe
termine which propositions any
shall be accepted. The interest snail D
psysble ssmi-snnually, and II dsfsuit D
inside in the payment Of any inst.llmen
Of interest, the unole debt shall oecom'
&c and toe deed 81 trust shall contsin IN
aud eli other covsnanis, aad the coontl
i1dgs and his Successors 10 Office sbsll D
fhe trustee nsmsd and shall see 70 the col
ectioD. The person boTovi9R shall pa
the expense Of exsmisisg titles and pre-
psriDg pspers, 20 be done by = me one sp
pointed By the corr, who shall M bis com
tenssfion and require OF bin an sostrac
ana written opinion showing the tile AZ.
That the property u not eHsmpi
seq. O. The county treasurer shall re
ouire &c often as the CON. 1issioDers cour
nav require. and, 81 least, twice ever
wear. TIE condition o. the school fund, an
frs e1rrrriu-sor - shsl srs-ire - iess
r1ass refr. f1 see lhst ths securities nr