Perth Amboy evening news., 1922-09-07
new SCHOOL OPINION
OF ATTORNEY GENERAL.
Continued from page ID

Section IL of chapter 240 of ihe
Laws OF 1917 provides that the net
debt OF a municipality other than a
county shall be arrived at by Ge-
Quoting, among other items. The
notes, bonds or certificates OF the
municipality issued for school par
poses. l.. l.. 1917, p. S13, sec. %,
paragraph Cd a.
Paragraph (4) of the same Sec
tiCn beginning on y. SIG provides
thar no ordinances or resolution,
plior to the passage OF which a sup
Elemental debt statement must tie
iiled, shall be passed ii 1t APPEARS
from such supplemental debt stale
ment that the percentage of the net
left OF a municipality other than a
county, as stated in subdivision te)
exceeds seven percentum.
Section 10 of the school law OF
1903, Special Session, +. L.. 1904,
first pages rs and 20, provides that
the total amount of bonds for the
purposes named in the section, in
cludinS bond heretofore ISSUED Tor
such purposes and not redeemed,
shall not exceed at n one time a
sum equal to three ~percentum OF The
taxable valuation of the real and
personal property in such city, and
provided further that if the char
ter of the city shall limit the amount
of Indebtedness in such city, or shall
by its terms prevent the carrying
out of the provisions of this section,
said charter provisions shall be here
after held not to apply to the IS
suing of bonds under the provisions
OF the section.
by chapter 234 of the laws of
11p1 section Tf WA amended in
paragraph (S) providing that the
total amount of bonds for such pUr-
poses including bonds previously Is
sued and not redeemed. should not
exceed at any one time a sum equal
to six percentum of the taxable val
u~ations of the real and personal
property in such district, with toe
same proviso as to the exception
from charter provisions.
The latter amendment of the sec
ton changed the provisions of the
section as it existed under chapter
1SG of the laws of 1919, p. 3SS, on
pages 1872 and 1893, where the boLds
were limited to five percentuin of
the taxable valuation of the real ard
personal property.
subdivision 8 of section 76 IN the
laws of 1919, as well as in the laws
VI IJ-lp ploNlotS ia III diiioullt III
excess of the percentum limitation
therein stated shall be appropriated
except with the concurrence ard
consent of the governing body ex'
pressed by it's resolution duly passed.
Il have come to the conclusion
that the provisions recited operate
to limit as the law now stands The
borrowing capacity of school districts
as to bonds issued by municipalities
for school purposes above three per
centum of the taxable valuation of
the real and personal property, Gniess
the governing body of the munici-
pality consents by resolution to al
ISSUE not to exceed six percentum OF
such taxable valuation.
Under the provisions of section
IL, paragraph Cd b, subdivision go
the net indebtedness incurred or au-
thorized for school purposes to an
amount not exceeding three percen-
tum OF the average assessed Valua-
tiCn may be deducted from the gross
Indebtedness, so that the limit 10
municipalities in addition to such
three percentum is seven per cent
or a total of ten percentum for both
purposes. If an additional amount
however, is to be borrowed by such
municipality for school purposes, il
must be with the consent of the gov
erning body. as it operates to reduce
the limited borrowing capacity o
the municipality to the additiona
extent, and, therefore, the limit fix
ed in the school law must be reat
in harmony with the provisions o
the municipal bond act as to any
any amount to be borrowed in eXces'
OF such three ~percentum.
THE clause in section IL Cd A.
L. 1917. p. S13, to the effect that The
deduction from the gross Indebted
ness of a school district constituting
a separate corporation does not seen
to apply to a situation of the kilt
referred to where notes or bonds are
issued by a municipality for schoo
purposes under section 76 of thC
school law where the governing body
of a municipality acts upon the rec
concentrations of the Board of EST
mate.
| Very truly yours,
"(Signed) THOMAS H. NC GRAN.
Attorney General,
KEYpHRT