The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-04-24

act Tor II In the nego,iati,,s or ~alo ~
such bonds. they shall there ifter be se,a
N every action or proceeding in which
,nelr Vaipiliy Is or may he callol into pucs-
s,on TO be Vail and binding obligations
OF the county or inco-Duratel citv issnina
the same. unless iraudulently issued or Il.
sued in violation OF constitutional liInifa-
tiOn and In every such action the ccrtiH-
Catc OF the attorney general. as aforesaid
tWlicn snail be carefully preserved by the
comptrolleri, shall be ADMITTED ana rc-
ceiyed as prima facie evidence Of the valid
ity OF the bonds and coupons thereto.
winch may have been so purchased: and II
Is further provided that the commissioners
courts Of the counties Of this state are
hereby authorized to invest the permanent
school fund belonging 10 the county In tho
manner provided In this act for the invest
ment of the State fund
Article 1898. Nothing IN The preceding
article shall be so construct as 20 relieve
he comptroller or board OF education from
the duty OF careful examination of he
bonds offered as an Investment Tor the
permanent public free school .unl Of the
State. an investigation of the facts tending
TO show the value anil validity thereof,
and such board of education may decline
to purchase same, unless satisfied that they
are safe and proper In vestment for such
funds, and no bonds shall be purchased
as an investment for the permanent pub
| lie free school fund that do not bear as
great rate of interest as at least per
cent pen annum; and no county
bond or the bond OF any in
corporated city shall he purchased
as an investment for the permanent public
free school fund when the indebtedness of
such county or incorporated city, exclusive
of the bonds so offered, shall exceed per
lra of ~ ho
tate in such county or incorporated city,
and II default be made in the payment OF
| interest when due, upon such bonds, the
board Of education may at any time prior
to the payment of such overdue interest,
elect to treat the principal as also due, and
the same shall thereupon at the option OF
the board of education, become due and
payable, and the payment of both such
principal and interest shall in all such
cases be enforced In such manner as Is
or may be provided by law, and the right
to enforce such collection shall never be
barred by any law or limitation whatever.
| Article 1894 In all cases where the pro-
| ceeds of the sale of any bonds have been
received by the proper officers OF the
county or incorporated city, or by the
party acting for It in negotiating the sale
| thereof, such county or Incorporated city
shall thereafter be estopped from denying
|
the same shall be held to be valid and
| binding obligations of the county or In
| corporated city, and in any action upon
| such bonds, or coupons thereto, Judgment
| shall be rendered against the county or
Incorporated city for the amount OF tho
bonds sued on and interest thereon, at the
rate mentioned therein, deducting such
amounts, il any, as have been previously
| paid thereon.
Article 3So4a Whenever any ccunty or
| Incorporated city of this State ssGes any
bonds. and they have been approved by the
| attorney general. as is required, by tie
previous articles of this chapter, the coun-
| ty Judge of the county or the mayor OF
| the incorporated city. as the case may be,
| shall notify the State board OF educauion
Of all bids received for such bonds, mud
the said county Judge or mayor, as the
case may be, shall give the State board
| of education an option Of ten days in
which to purchase such bonds: provided,
! that the said board of education will pay
| the price offered for such bonds by the
| best bona fde bidder, and II the board Of
education shall fail to purchase such bends
within the prescribed time, then the coun-
| ty judge or mayor. as the case mar be.
! shall sell the bonds to the best bona flde
bidder.
In the event the State board OF eduos-
/ ton should pay a premium out OF the
permanent school fund on any bonds pur-
chased as an investment for the permanent
school fund, then the principal of such
bond and an amount of the interest last
accruing on such bond, equal to the pre-
MUM so paid. shall be, and be treated as
the principal in such investment, when
such last interest is collected such sum
of the same shall be returned to the per-
manent school fund.
And If they purchase said bonds for less
than par, the discount they receive in the
| purchase OF said bonds shall be paid TO
the available school fund when the bond
are paid off and discharged.
The price paid for bonds shall he in
| dorsed thereon at the time the same arc
! purchased
Section Q The fact that there is now
| over one million dollars belonging to the
| permanent public free school fund. which
! is uninvosted. creates public necessity
and emergency, requiring the suspension
| of the constitutional rule requiring bill.
| TO he read on three several days. and The
rule is so suspended and that this act
/ take effect and be in force from and after
its passage. and il is so enacted.