Year: 1868

CHAPTER, 81.


AN ACT to enable municipal and pub
lie corporations at their election to settle
adjust and compound their indebtedness
and to provide for the issue OF new
Bonds and for the payment Of suci
new Bonds by the levy Of specific taxes
and for this purpose altering and amend
ing existing charters and laws.


SECTION |. Be it enacted by the Genera


Assembly O fMe State of Io,ca, That mum;


cipal and public corporations, including


cities, towns and counties, are hereby au


thorized to settle, adjust and compound


debts owing by, or claimed against them


evidenced by the bonds or other promisory


instruments Of such corporations and


such corporations, upon such settlemen,


and composition, are hereby authorized tc


issue new bonds in the place of the old o,


former bonds, and such new bonds shall


be legal and valid to all intents and pur-
poses and no corporation issning such new


bonds shall be allowed to plead in defence
thereto any matter which might have been


pleaded in the defence Of the old or former


bonds, provided, that no compromise shall


lie made without first submitting the ques.
ton whether such compromise shall be
made to the people, and shall be by them
authorized by a majority of the voters.


This act is intended to apply only to
cases where cities, towns and counties have


heretofore issued bonds or securities for
money on account Of any subscription to
the capital stock of any railroad company
or on account of, or in aid Of any public
improvement, and the same remaining out
standing, and any alleged debt arising
therefrom remains unpaid. But this &C
is limited to the settlement Of bonds and
securities heretofore issued and outstand-
ing at the time Of the passage and approval
hereof; that is to say, the power herein
given to settle, adjust and compound debts
is given, with respect to debts already ex-
listing, and to enable the debtor corpora
tions to settle the same in accordance with
the provisions of this act.


And pothinn herein contained shall be
construed to give the holders Of existing
bonds or securities the right to compel the
debtor corporation to issue such new
bonds, or to settle, in the absence Of an
agreement on its part to do SO. And moth
ing herein contained shall be construed
to legalize or render valid, or binding. or
in any manner to effect existing bonds or
evidences OF Indebtedness of any character
in this act.


This act applies to counties, and to cities
and towns, whether acting under special
charters or under the general incorporation
law.


New bonds issued by virtue hereof, shall
in no case be for greater sum than the
principal and accrued or earned interest
unpaid on the bond or debts, in place Of
wich, or to pay which, they shall be given,
nor bear greater rate of interest than
seven per cent. per annum, which interest
may be made payable at New York, N. Y,
or at the treasury of the corporation; and
such new bonds shall show on their face
that they are issued under this act, and if
so agreed, may provide for the annual pay
ment Of hyeper cent. of the principal there
of, in addition to the annual interest, un-
til said new bonds are fully paid. Said
new bonds shall be made payable at the
treasury Of the corporation, shall be can
cclled when paid, and destroyed in the
presence of the Council or Supervisors,
who shall cause to he kept register of all
new bonds issued, and all coupons or
bonds which are cancelled and destroyed
Such new bonds may be in such form, .or
such amount not exceeding principal and
interest due on the old bonds or secu-
ties, and upon such time, not exceeding
twenty-five years, as may be agreed upon
with the holder or owner. Such new
bonds shall only be signed in open session,
a register shall be kept thereof, the bonds
at once delivered to the treasury of the
city, town or county, who shall be liable
on his official bond for the safe keeping
thereof, and for the proceeds thereof, until
he parts Herewith under the direction of
the Council or Board of Supervisor.


Sec. :. The Council or Trustee of in
towns or cities, or the Board of
of counties are hereby invest
ed with full power to bind their respective
by settlements made pursu-
ant to and in virtue of this Act. But they
are directed and required, before any such
settlement shall be entered upon, to ascer-
tain the whole amount due by such debtor
and they are invested with
power to ascertain this in such way and
as they may deem best. And the
holders Of existing bonds shall, if requir-
ed by public proclamation of the Board of
Supervisors or proper City or Town Coun-
Gil, and as herein required, present their
bonds to the proper Clerk OF the county
or city or town, and allow such Clerk to
make register of such bonds, showing
their date, number, amount, maturity and
rate of interest. And no old bond or evil
dencs of debt shall in any case be allowed
audited, paid or settled until the same shall
be actually produced and surrendered, or
established by the judgment of a compe-
tent court. If it elects to act hereunder,
the city, town or county, by its proper
governing body, shall appoint not less
than three nor more than five of its citi-
zens, Board Of Commissioners to execute
the powers and duties required by this act,
Of which Board Of Commissioners, the
Mayor Of the city or town, or the chair
man Of the Board Of Supervisors shall be
er o6icio a member; but no act Of the
Board of Commissioners in auditing or al.
lowing bonds or debts, or in settlement
thereof, shall bind the corporation until
such act is reported to the proper govern
ing body of the corporation and approved
by it, And said Board of Commissioners
shall keep record Of their acts and do
ing, which shall all times te open to pub
lie inspection. Aud the city, town or
county corporation shall likewise keep a
record of all its acts ana doings in the
premises, which shall also be open to pub
lie inspection.


Sec. 3. If new bonds or obligations
are issued pursuant to the power given by
this act, the said corporations named in
the first section hereof, are hereby author
lied, at the time they make their annual
levy Of general taxes for general revenue,
to appropriate and set apart for the ensu-
ing year or for n given number Of years,
a specific portion or per centage of the
general tax SO levied to pay or apply on
the new bods herein authorized, and on
such portion of the principal, il any, as
has been agreed to be paid each year.
When thus appropriated, (which may be
by ordinance, contract or resolution), the


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