Mexico weekly ledger., 1920-09-30

principal Of said public utilities bonds
shall not constitute an obligation Of the
city enforcible out Of the funds raised by
taxation. Such city may also issue It's
bonds, other than public utilities bonds.
for the payment. In whole or in part. for
such public utilities. and such bonds. other
than public utilities bonds, shall coneti-
tute direct obligation OF the city, but
than public utilities bonds. shall not eX-
ceed In the aggregate ten per centum OF
the taxable property therein, as herein
than public utilities bonds. shall require
the assent Of two thirds OF all the legal
votes cast on that proposition. The ordi-
nance authorizing the purchase, condem-
nation or construction Of such public
service plant or system shall provide what
portion, II any, OF the cost thereof shall
be paid by issue of public utilities bonds:
by issue OF general bonds of the city.
other than public utilities bonds. The
principal and the interest OF such pub
lie utilities bonds shall be paid out Of
or system for the acquisition OF which
said Issue was made. but the city may
thereafter provide. by ordinance. for the
payment In any year of any part Of the
interest or principal OF said bonds due In
that year, out Of the general revenue OF
that year raised by general taxation. Such
city shall have power to execute its
mortgage or mortgages on any such util-
ity or any addition thereto, or extension
thereof, to secure the payment of such
public utilities bonds, and IN case Of de-
tiles bonds, and the interest thereon or
interest thereon, said bondholders, or
their representatives may apply to any
court Of competent jurisdiction. sitting
in the county or city in which such city
is located, and said court may. In its
discretion, II said default continue, APP
point a receiver to taFe charge OF such
property, and such receiver shall oper-
af 10 qaid nRDdtnR sICh nrOpped-
ing In such court, and until final decree
Of foreclosure in such proceeding, and
for period of one year thereafter, dur
ing which period the city may. upon
payment to the bondholders of all in
debtedness past due. and court costs, and
receivers obligations. retake said prop
erty, subject to its unmatured obliga-
tions. II said property is not thus re-
taken by the city in said period OF re-
demption, said receiver shall deliver said
property to such party, as the court IN
such action may order. and thereupon all
| liability OF the city on said bonds shall
cease and determine and its rights as
| owner Of said utility or plant shall cease
| and determine, and thereafter said utility
| or plant shall be operated by the party
named in said order Of court, or his sue
| cessors or assigns, in conformity with
I and subject to the provisions Of the ordi-
nance authorizing the acquisition or pur-
| chase or construction OF said public util-
| ity or plant and the Issuance OF bonds
| therefor; but such city shall not issue
any such PgbS 9 bonds o e
thereof. voting on that proposition, at an
| election to be held for that purpose, and
| such proposition may be submitted at n
| special election or at general election.
| In either of which events il ur-sevenths
| OF all Of the legal votes cast on such
| proposition are in favor Of the issue of
| said bonds, the city shall have authority
| to Issue the same. Such utility may be
acquired by condemnation proceedings in
| the same manner that such city may
| acquire real estate for public purposes.
| or in such other manner as may be pro-
| vided by law. Such city may be a
| vote of the people In the manner herein
| provided. take up any public utilities
bonds issue its general bonds in lieu there
! Of. and may take up any general bonds
issued on account of any public utility
and issue public utilities bonds In lieu
| thereof, whenever there exists such debt
| making power of the city as will author
ize the Issue OF such new bonds, but nc
| substitution shall be made without the
consent of the holders of such bonds.