Iron County register., 1920-10-28

principal OF said public utilities bonds
shall not constitute an obligation OF the
city enforcible out of the funds raised Dy
taxation. Such city may also issue lts i
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 consti-
tute direct obligation OF the city, put
than public utilities bonds. shall not ex-
ceed in the aggregate ten per centum OF
the taxable property therein. as herein-
before provided, but such BONDS. otner
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 pubic
service plant or system shall provide what
portion. II any. of the cost thereof snail
be paid by issue of public utilities bonds;
and what portion, If any, shall be PAID
by issue OF general i.id honds d o. dne c1sy, ny
principal and the interest OF such pub
lie utilities bonds shall be paid out OF
the earnings or sale Of the utilities plant
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 IT'S
mortgage or mortgages on any Sucn utlI-
ity or any addition thereto, or extension
thereof, to secure the payment OF such
public utilities bonds, and in case Of de-
fault in the payment Of such public util-
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. If said default CONTINUES. ap-
point a receiver to take charge Of such
property, and such receiver shall oper-
ate said property pending such proceed
ing in such court, and until final decree
of foreclosure in such proceeding, and
for a 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. If 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 snail 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
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 public utilities bonds without
the assent of four -sevenths of the voters
thereof. voting on that proposition, at ar
election 20 be held for that purpose, ane
such proposition may be submitted az
special election or at general election
1 In either of which events if four-seventh'
of all of the legal votes cast on sucf
proposition are in favor of the issue o.
said bonds, the city shall have authority
to issue the same. Such utility may b'
acquired by condemnation proceedings II
the same manner that such city ma!
acquire real estate for public purposes
or in such other manner as may be pro
vided by law. Such city may be I
vote of the people in the manner herein
provided, take up any public util1tie
bonds issue it's general bonds in lieu there
Of, and may take up any general bond
issued on account Of any public utilit,
and issue public utilities bonds In lie1
thereof, whenever there exists such debt
making power of the city as will author
ize the issue of such new bonds, but n
substitution shall be made without tn
consent OF the holders of such bonds.