Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-02-17

the foreign creditors.
The following are the bills prepared by
Mr.. Geo. B. Peters, which are necessary to
effect the compromise proposed.
The Bills.
AN ACT to repeal Chapter % of the Acts of the
Second Extraordinary Session of the General
Assembly OF Tennessee, passed April &C. 1882; ap-
SECTION /. be Il enacted by the General Assembly Of
hs STATE Of Tea'eeses That an act passed April g.
amend the act of 1881 chapter cxxiii passed April
6, 1881, entitled An Act to provide for the settle
cipaity of the city OF Mem phis which authorized
a settlement of the debt of the city of Memphis
terms therein stated, be aid the same is hereby
pealed.
take effect from and after its passage, the public
welfare requiring 1t.
AN ACT
To empower Municipal Corporations and Taxing
Districts TO Compromise and Fund their Indebt-
edness, Issue Bonds for the amount so funded,
and to provide means for the payment OF the
sEcTIoS l. Be il enacted By the General Assembly
faons and taxing districts in this State hereby
authorized and empowered to compromise and
settle their debts, and to issue their bonds and
coupons therefor as herein provided.
Sec. Be IL further enacted, That any municipal
corporation taxing district may issue its bonds
at the rate of fifty per cent OF the principal and
past due interest OF all that part OF It's debt which
has not heretofore been compromised under an
ISL entitled IAN Act to authorize municipal cor.
poratons to settle their Indebtedness" Chapter 10
when thus settled shall yield the holders thereof
six yer cent interest But for the first three years
only three per cent shall be paid, and three per
years four per cent. interest shall be paid and two
per cent. shall be capitalized; and thereafter six
Sec g. Be IL further enacted That in all cases
where portion of the debt OF any municipal cor
compromised under the aforesaid act, and compro-
mise bonds have been issued therefor, the settle
holders Of said bonds, shall be at par The holders
of said compromise bonds may exchange them for
the bonds authorized by this act at par, with the
vided in section 2 OF this act Or they may re
tain their bonds and fund the interest past due,
and the interest to be capitalized under the pro-
visions of this act in the bonds herein authorized
to be issued al par; in which case each coupon on
sala bonds maturing Iof three years from
that one-half thereof has been capitalized, and
that the rerisinng one-han will be paid at ma
for the next three years there shall be stamped q
provision that one-third thereof has been capital.
lied, AID that the remaining two-thirds will be
paid at maturity. Whenever said compromise
bonds are retained, neither the acceptance of in
terest on Them nor the capitalization of interest
on them, as provided by this act, suAll be held
taken as waiver of any rights which the holders
SIC 4 Be L further enacted That for the purpose
of auditing and funding the debt of any munic-
lpdl ctIpOfdIl0u OF ulbLIlct uQQ6F Luo pro-
visions Of this act, board, to be known as an
Auditing Board. is hereby created, to be composed
Of the mayor or president or chief executive on
Ger, and the attorney. of the municipality or tax
ing district and third person, of legal knowledge,
and of probity and capacity. to be appointed by
taxing district Such chief officer shall be the
chairman, and the secretary of the local govern
ment shall, e1o1cio, be the secretary of the bosrd
Before entering upon their duties they shall sew
orally take an oath of Office before the Judge of
any circuit Court in the State and shall severally
OF a in he of xvff
proved securities to the satisfaction of such judge,
for The faithful discharge of their duties under
this act. The secretary, under the supervision OF
the board, shall keep its books, and perform such
other duties as the board may impose upon him.
formed under this act, $500; and the chairman of
the board shall receive $1,000 and the other mem
bers $500 each for their entire services unoer this
zec. 5. Bet further enacted, That me said board
shall carefully examine all the Indebtedness pre-
sented TO be funded under this act, whether con-
sisting of bonds, coupons, judgments, scrip, or
other Indebtedness; and If they ascertain and de-
term1ne from an inspection and examination of
the same that the bonds and coupons SO presented
were issued and signed by the duly constituted
authorities of the municipal corporation or taxing
district; and that the judgments on bonds or cou-
were issued and signed by the duly constituted
authorities of the municipal corporation or tax
iog-aisrict and that other Indebtedness or claims
presented, OF whatsoever character, are the genu-
Inc oil the municipal corporation or
TO audit the same, and TO prepare new bonds
therefor as herein provided. The board is further
authorized and empowered to determine, pro
mise and adjust any other claim or demand that
may be presented to be funded-its decision in the
matter 10 be final and conclusive on such munich
pal corporation taxing district and il they are
IN doubt as to the propriety of funding such other
claim or demand, they may make an agreed ease
with tbs claimant, to be determined by any court
OF competent jurisdiction; and IL that cannot be
done; then such creditor or claimant is left to
establish his claim in any such court.
Sec. g. Be 1t further enacted That whenever any
bond, coupon, Judgment or other Indebtedness or
is pfe.ented ana t6e %udtipr B Board
ma that 1t is entitled to be funded under the
PROVISIONS OF this act, then, upon the surrender
by the holder of his evidence of debledness,
or upon his acquitance of his debt. such NUM-
cipal corporation or taxing district lie hereby in
vested with full power and authority. and is re-
bond at the rates aforesaid in exchange for the
Indebtedness SO surrendered; and the same shall
be delivered to the person entitled TO receive it
and full receipt taken from him, showing the
Indebtedness surrendered and the bond received.
This receipt shall De preserved in book kept for
the purpose among the other aecords Of the local
government.
Sec :. Be Il further enacted That the bonds here
by authorized to be issued shall all be dated the
| LIST day of January 1885, They shall be payable
thirty years after their date, but shall be redeem
any successor thereof. any time after the ex-
piration of six years from their date. They shall
bear interest at The rate Of three per cent per
| mum for the first three years: four per cent per
annum for the next three years, and six per cent.
| per annum for the remsining twenty four yeai S,
| evidenced by coupons attached, payable semi
annually in the city of New York, on the LIST day
| OF January and July of each and every yesr from
| and including the LIST day of July iSs3, TO the
maturityo of the bond-the difference between the
OF interest here stated and six per ceat being
| capitalized as hereinbefore set forth. The said
| bonds shall be in denominations OF slO0, $500
and $1,000, at the option of the party
funding. They shall be signed by the
oficer of the municipality or taxing district, and
countersigned by the secretary of the local gov
eminent and the seal of the corporation shall be
affixed thereto, which seal shall be provided BY
such local government for that purpose. In issu-
ing said bonds all due interest TO the LIST of Janu-
airy, 1885, shall be computed and treated part Of
the principal The first coupons shall mature July
1, 1883. A certificate shall be issued for any
amount of debt as compromised less than 500,
which shall be convertible into the bonds author.
lied TO be issued by this act when presented in
sufficient sums
Sec. 8. Be Il further enacted, That the bonds
issued under this act shall be substantially in the
following form:
.-............ COMPKO BONDS 1859
Bonds issued for Funding and Compromising the
debt Of there insert name Of local governnerfl.
Rl0tp AU Men mn Th,se pn,sspfs That Ibara in