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 LIBRARY 
 
 OF THE 
 
 University of Illinois. 
 
 BOOK. 
 
 VOKUMK. 
 
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 CLASS. 
 
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 Books are not to be taken from the Library. 
 
 Accessions No... A 5S>&8. . 
 
 
Return this book on or before the 
 Latest Date stamped below. 
 
 University of Illinois Library 
 
 NQU 181354 
 
 in.) Ii-' 
 
V 
 
 
 
 vV 
 
 
 
DIGEST OF LAWS 
 
 GOVERNING THE ISSUE OF 
 
 MUNICIPAL BONDS, 
 
 OHIO, INDIANA, ILLINOIS, IOWA, 
 
 NEBRASKA, MISSOURI, MICHI 
 
 WISCONSIN, MINNESOTA, 
 DAKOTA TERRITORY. 
 
 S. A. KEAN & COMPANY, 
 
 BANKERS. 
 
 Successors to Preston, Kean & Company, 
 
 CHICAGO. 
 
 S. A. KEAN. 
 
 JOHN FARSON. 
 
Entered according to act of Congress, in the year i88s, by S. A. KEAN & Co., 
 in the office of the Librarian of Congress, at Washington, D. C. 
 
 CHICAGO, ILL. 
 
 The P. L. Hanscom Printing Company. 
 
 1885. 
 

 INTRODUCTION. 
 
 We have carefully prepared a summary of the laws 
 of the western states governing the issue of municipal bonds, 
 to which we invite your careful attention. Our experience 
 leads us to believe that probably ninety-five per cent, of the 
 losses arising from investments in municipal bonds have been 
 caused by want of information as to the laws, both consti¬ 
 tutional and statutory, governing their issue. In an ex¬ 
 perience of over twenty years , neither ourselves nor any in¬ 
 vestor through us , so far as we know , has lost a dollar through 
 default or repudiation of any municipal bonds handled by or 
 purchased through us. We invariably require full official 
 certified records of proceeding of authorities in matter of 
 issue, have said records carefully examined by the most com¬ 
 petent attorneys, and have uniformly declined bonds where 
 the least taint or irregularity has been shown. Some of 
 these technically imperfect issues have been promptly paid, 
 but our experience has demonstrated to us the wisdom of ad¬ 
 hering strictly to our policy, namely, of requiring absolute 
 conformity to the laws. In addition to this, we in every case 
 where it is practicable, make a personal inspection of the 
 municipality, talk with the people, see that the contemplated 
 improvement is desirable and necessary, and that the citizens 
 are in favor of it. The most conservative investor or holder 
 of trust funds may, in purchasing loans from us, be assured 
 that all detail as to legality, regularity and financial condition 
 have been carefully scrutinized and approved. We are pleased 
 
to give municipal authorities and others desiring information 
 as to manner of issue—so as to enable them to comply fully 
 with the requirements of the law—full instruction, and will 
 also furnish blank bonds covering all classes of issues, at the 
 lowest possible expense. 
 
 We do not handle bonds issued for railroad aid, for the 
 reason that this class of securities has been most fruitful of 
 litigation. And in this pamphlet we have not taken up 
 laws pertaining to the issues of particular classes of bonds, 
 such as railroad aid, special assessment, etc. 
 
 We are pleased to hear from our friends who desire any 
 information as to the desirability of any particular class of 
 bonds, or issued in any particular locality. 
 
 We receive the Accounts of Banks, Bankers, Corpora¬ 
 tions, Merchants, Individuals, and others, on favorable 
 terms. 
 
 We issue Travelers’ Letters of Credit, available in 
 any part of the world. 
 
 Buy and sell Foreign Exchange on the principal 
 European and Continental Cities. 
 
 We give Special Attention to Collections, with 
 prompt return or reason for non-payment. 
 
 Government Land Warrants and Scrip, which are 
 used in location of and obtaining title to Government Lands, 
 constantly on hand. 
 
 Respectfully, 
 
 S. A. KEAN & CO. 
 
 Chicago, October 1, 1885. 
 
SUMMARY OF THE LAWS OF INDIANA 
 GOVERNING MUNICIPAL BONDS. 
 
 Constitutional Limit. — No political or municipal cor¬ 
 poration in this state shall ever become indebted in any man¬ 
 ner, or for any purpose, to an amount in the aggregate 
 exceeding two per cent, on the value of the taxable property 
 thereof. [Constitution 1851, Article 18.] 
 
 COUNTY BONDS. 
 
 Authority to Issue. —For the purpose of constructing, 
 completing, or repairing a court house, jail, or other county 
 building; or to fund, or average, any existing indebtedness, 
 incurred for county purposes, for which the revenues afforded 
 by taxation are insufficient, the county commissioners may 
 borrow money not exceeding one per cent, on the assessed 
 valuation of real and personal property of the county, and 
 issue bonds therefor in sums not less than twenty-five dollars, 
 and bearing interest not exceeding the legal rate in the state 
 or territory where they are negotiated, not exceeding ten per 
 cent, per annum. 
 
 Sale of Bonds. —Such bonds shall not be sold at a greater 
 discount than eight per cent. The county auditor shall deliver 
 such bonds to the county treasurer , and charge him therewith 
 upon the books in his office, and the same shall be deemed a 
 part of the county funds in the hands of the treasurer. 
 
 Unsold Bonds. — If such bonds, or any portion thereof, 
 shall not be sold as aforesaid, the county treasurer shall return 
 
6 
 
 SUMMARY OF LAWS OF INDIANA. 
 
 them to the county auditor, who shall give him the proper 
 credit therefor upon his hooks. 
 
 FORM OF BOND. 
 
 Sate of Indiana, County of. 
 
 The county of..will pay to the bearer,. 
 
 years from the date hereof, the sum of.dollars 
 
 and.cents, with interest thereon at the rate of. 
 
 per cent., payable annually at.in the State of 
 
 .on the.day of., in each 
 
 year. . 
 
 Commissioners of County. 
 
 CERTIFICATE ATTACHED. 
 
 I, ., county auditor, do certify that the annexed 
 
 bond was issued to the county treasurer, this_*.day of 
 
 .A. D. 18... 
 
 In testimony whereof, I have hereunto set my hand, and 
 affixed the seal of said board of county commissioners, this 
 .day of., 18... 
 
 . County Auditor. 
 
 Tax to Pay Bonds. — The county commissioners shall 
 levy a tax of not less than one-tenth of one per cent, on the 
 taxable property of the county, which, when collected, shall 
 be invested in the bonds, and shall constitute a sinking fund 
 for the payment thereof. 
 
 Payment of Interest. — The county commissioners shall 
 provide for the payment of the interest on such bonds, by a 
 direct annual tax. 
 
 Funding Debts. — When the indebtness of any county 
 having over twenty thousand voting population, as shown by 
 the vote cast for governor at the last election, amounts to or 
 
SUMMARY OF LAWS OF INDIANA. 
 
 7 
 
 exceeds one per cent, on the total taxables of the county, the 
 board of commissioners may issue bonds to fund so much of 
 the indebtedness, as is outstanding, bearing not more than 
 six per cent, interest per annum, payable annually, or semi¬ 
 annually, at such time and place as the board may provide. 
 Such funding bonds shall be issued only for the purpose of 
 taking up and canceling bonds and indebtedness outstanding. 
 
 Limit of Issue. — The amount of funding bonds issued 
 shall not exceed the amount of indebtedness of the county at 
 the date of the passage of this act, (“In force March 7, 
 1879,”) as shown by the statement of the commissioners, and 
 county auditor. 
 
 Temporary Loans. — When the indebtedness of any 
 county, having a voting population of over twenty thousand, 
 amounts to or exceeds one per cent, on the taxables of the 
 county, it shall not be lawful to increase such debt in any 
 manner, except by temporary loans, in anticipation of the 
 revenue of the current year, and not exceeding two-thirds of 
 the amount of the county tax-duplicate of the year preceding, 
 payable out of said revenue and within the current year. 
 
 Road Bonds. —The county commissioners shall have the 
 power to lay out, construct, or improve any county or state 
 road, within the limits of the county, and issue bonds to meet 
 the expense thereof, maturing at annual internals, after two 
 years, and not beyond eight years, bearing not to exceed six 
 per cent, interest per annum, payable semi-annually. The 
 amount of such bonds shall not exceed at any one time one 
 and one-half per cent, on the value of the taxable property in 
 the county. [In force February 27, 1888.] 
 
 CITY BONDS. 
 
 Cities May Borrow Money and Issue Bonds. — Any 
 
 incorporated city containing fifteen thousand people, or more, 
 may borrow money not exceeding in amount two per cent, of 
 
8 
 
 SUMMARY OF LAWS OF INDIANA. 
 
 the taxable property of such city, as shall appear from the tax 
 duplicates of the year in which the loan may be effected. 
 The entire loan shall not exceed at any time, two per cent, of 
 the taxable property of such city. 
 
 Purpose. —Such loan shall be negotiated only to procure 
 money to be used in the legitimate exercise of the corporate 
 powers of such city. 
 
 Ordinance for Loan. — The city assessor, city clerk, 
 and city treasurer, shall, before any such bonds are ordered, 
 make an affidavit, stating the total value of the taxable property 
 of such city, and if the common council shall adopt an ordi¬ 
 nance authorizing such bonds, by a two-thirds vote of all its 
 members, the mayor shall then order the requisite number of 
 blank bonds to be prepared, and sign the same and deliver 
 them to the city clerk, who shall countersign them and attach 
 the corporate seal, and deliver them to the city treasurer. 
 
 Form of Bonds. —The common council shall fix the rate 
 of interest, not exceeding ten per cent, which such bonds shall 
 bear, and fix the time and manner in which said bonds and 
 interest shall be payable. No bonds shall be issued to run 
 more than twenty years. 
 
 Funding Bonds—Large Cities. — When the indebted¬ 
 ness of any city of this state, having over sixteen thousand 
 voting population, amounts to or exceeds two per cent, upon 
 the total taxables for the current year, it shall be lawful for 
 the council of any such city, on or before May 1, 1877, to 
 fund so much of the indebtedness as may be outstanding on 
 May 1, 1877 (whether such indebtedness be then due , or is to 
 come due), in the bonds of such city, bearing not more than 
 six per cent, interest per annum, payable semi-annually, at 
 such time and place as the council may provide. 
 
 Excess—Penalty. — Whosoever shall issue, or aid in 
 issuing, bonds exceeding the amount authorized as above, shall 
 be deemed guilty of a felony, and shall be punished by 
 imprisonment and fine. 
 
SUMMARY OF LAWS OF INDIANA. 
 
 9 
 
 Funding— Small Cities. — Any city having an in¬ 
 debtedness of thirty thousand dollars, evidenced by its bonds, 
 may, for the purpose of funding such indebtedness, or to 
 reduce the rate of interest thereon, or to cancel such bonds, 
 issue, upon a two-thirds vote of its common council, new bonds, 
 with or without coupons, not exceeding in amount the aggre¬ 
 gate indebtedness of the city. 
 
 Form of Bonds. — The common council shall issue the 
 bonds in such form; for such sums; bearing such rate of 
 interest per annum, not exceeding ten per cent., payable semi¬ 
 annually, at such time and place as they may determine. 
 
 Payment of Bonds. —The council shall annually add to 
 the tax-duplicate a levy, sufficient to pay the annual interest 
 on the bonds, with an additional tax of not less than five cents 
 on the one hundred dollars, to create a sinking fund for the 
 payment of the principal of such bonds within the time pre¬ 
 scribed. 
 
 SCHOOL BONDS. 
 
 Authority to Issue. —Any city or incorporated town in 
 this state, whose school board shall purchase any site for a 
 school-house, or purchase any building, or contract any debt 
 for school purposes, may issue the bonds of the city or town, 
 in payment of such indebtedness, to an amount not exceeding 
 in the aggregate fifty thousand dollars. 
 
 Statement of Cost —Ordinance. — Before any such 
 bonds can be issued the school trustees shall file, with the city 
 council or town trustees, a statement under oath, showing the 
 cost of such school site or building, or the amount required to 
 complete any school building, and the council or town trustees 
 must first pass an ordinance authorizing the issue of the bonds 
 for such purpose. 
 
 Form of Bonds. — The bonds shall be in denominations 
 of not less than one hundred dollars, nor more than one thou¬ 
 sand dollars; payable in not less than one year nor more than 
 
10 
 
 SUMMARY OF LAWS OF INDIANA. 
 
 twenty years, bearing such rate of interest as the council may 
 determine, not exceeding ten per cent, per annum. 
 
 Payment of* Bonds. — The council or trustees shall pro¬ 
 vide for the payment of the interest on the bonds by an annual 
 tax, and the principal thereof as it shall become due. 
 
 School Township Bonds. —Any school township may 
 issue bonds for the erection, repair or completion of any school 
 building of such township. Upon a petition signed by a ma¬ 
 jority of the legal voters of the township, asking for the erection 
 of a school-house, the township trustee, to whom such petition 
 shall be addressed, may issue such bonds, and negotiate them 
 for such purpose. The amount of bonds, interest, denomina¬ 
 tion, time, and manner of payment, shall be voted upon and 
 fixed at the annual meeting at which the question is sub¬ 
 mitted. 
 
 Townships May Unite. —Two or more townships may 
 unite in building any school-house, when each township shall 
 bear its proportion of the cost. 
 
 Township Debts. —Whenever it becomes necessary for 
 the trustee of any township to contract debt on behalf of the 
 township, which exceeds the fund on hand to which such is 
 chargeable, and the amount which may be raised by a tax 
 against the township, for the year in which such debt is con¬ 
 tracted, tbe trustee must first procure an order from the board 
 of county commissioners in which the township is situated, 
 authorizing him to incur such debt. Before the board of 
 commissioners can grant such an order, the trustee must first 
 file a petition in the county auditor’s office, stating the object 
 for which the debt is to be contracted, the amount required, 
 and make affidavit that notice has been given of the filing of 
 such petition, by posting notices in five public places in his 
 township, for twenty days prior to the first day of the meeting 
 of the county board. 
 
SUMMARY OF THE LAWS OF OHIO 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 Municipal corporations issuing bonds, shall first offer such 
 bonds at par and accrued interest to the trustees or commis¬ 
 sioners of the sinking fund, in their official capacity, and only 
 after their refusal to take all or any of the bonds, shall the 
 same be advertised and offered for public sale. 
 
 All bonds issued by county commissioners, boards of edu¬ 
 cation, and commissioners of free turnpikes, shall be sold to 
 the highest bidder, after being advertised three times weekly 
 in a newspaper of general circulation in the county where the 
 bonds are issued. 
 
 Amount. —If the amount of bonds exceeds twenty thou¬ 
 sand (§20,000) dollars, then by advertising in one additional 
 paper three times weekly. [In force March 22, 1883.] 
 
 COUNTY BONDS. 
 
 Authority to Issue. — The county commissioners of 
 any county, for the purpose of erecting a court house, jail, 
 county infirmary, or other county buildings, or to purchase a 
 site for any such buildings, or to construct bridges, may bor¬ 
 row money in such sums as they deem necessary, at not 
 exceeding six per cent, interest per annum, and issue bonds 
 of the county to secure the payment of the interest and prin¬ 
 cipal thereof. 
 
 Form—Execution. —Such bonds shall be in denomina¬ 
 tions of not less than fifty (§50) dollars, nor more than one 
 
12 
 
 SUMMARY OF LAWS OF OHIO. 
 
 thousand ($1000) dollars, running not more than seven years, 
 bearing not more than eight per cent, interest per annum, 
 payable semi-annually at the county treasury; and shall 
 specify the object for which they are issued; shall be signed 
 by the county commissioners, or two of them, and counter¬ 
 signed by the county auditor. Such bonds may, or may not, 
 have coupons attached. 
 
 Notice of Purchase. — Before any purchase of lands, 
 or erection of any buildings, the commissioners must publish 
 and circulate handbills, and publish in one or more news¬ 
 papers of the county, notice of the contemplated purchase or 
 building, for at least four consecutive weeks prior to such in¬ 
 tended purchase or building; and shall hear all petitions and 
 remonstrances for and against the improvement. 
 
 Payment — Interest — Principal. —The commissioners 
 shall at their June session, each year, levy such amount of 
 taxes as will pay the interest, and at least one-seventh of the 
 principal. 
 
 Failure to Levy. — In the failure of the county commis¬ 
 sioners to levy such tax, the county auditor shall levy the 
 same. 
 
 Redemption. —All bonds shall be correctly numbered in 
 the order of issuance , and registered with the county auditor, 
 and, when paid, the auditor shall write across the face of the 
 bond, “ Redeemed,” in red ink, with date, and sign his name; 
 and the treasurer shall write across the face of the registry in 
 the auditor’s office, “ Redeemed,” in like manner. 
 
 Yalidity of Bonds. — It is essential to the validity of 
 every contract entered into by the commissioners, that the 
 same shall have been adopted at a regular meeting or special 
 session , and entered on the minute of proceedings by the 
 auditor. 
 
SUMMARY OF LAWS OF OHIO. 
 
 13 
 
 CITY BONDS. 
 
 Limit of Indebtedness. — The council shall not make 
 any appropriation, or contract alebts, exceeding the amount of 
 taxes and revenue from other sources, for the current year, 
 received for such purposes. 
 
 Loans. —Municipal corporations may make loans in 
 anticipation of the general revenue fund. 
 
 Limit of Loan. — No new loan shall be made until the 
 previous loan is fully paid and canceled, and no loan shall be 
 made in anticipation of such fund, exceeding the amount of 
 taxes and revenue from other sources, due and payable into 
 the fund for the fiscal year. 
 
 Sec. 2700, page 700, 2d cd. revised statutes, 1880. 
 
 May Issue Bonds. —For the purpose of erecting offices 
 or an infirmary, or to construct a bridge, vault or cistern, or to 
 purchase a site for such improvement, or to purchase a fire 
 engine, hose, and apparatus, to build or improve a turnpike, 
 or to borrow money to cover a deficiency, or to pay any bond 
 or indebtedness, or to make any improvement not herein 
 specified, and for which a tax may be constitutionally levied. 
 The council or township trustees may issue bonds in such 
 amounts and in such denominations as they may deem neces¬ 
 sary ; but the bonds shall not bear more than six per cent, 
 interest per annum, or be sold for less than par. 
 
 How Yoted. — Before the bonds are issued they must be 
 authorized by a two-thirds vote of the people, at an election 
 called for the purpose, thirty days’ notice having been given 
 by publication in one or more newspapers for four successive 
 weeks. 
 
 Payment. — The bonds shall be paid by an annual tax 
 levied by the council or township trustees, during the period 
 the bonds have to run, which tax shall be sufficient to pay the 
 
14 
 
 SUMMARY OF LAWS OF OHIO. 
 
 bonds as they fall due, and the interest on the bonds annually 
 or semi-annually. 
 
 Extension Bonds. —The council or town trustees of any 
 municipal corporation may issue bonds to extend the time of 
 payment of any indebtedness which the corporation is unable 
 to pay at maturity; or borrow money so as to change, but not 
 increase , such indebtedness, the bonds to bear such rate of 
 interest not exceeding eight per cent, as the council may 
 determine. All bonds issued as herein provided shall express 
 upon their face the purpose for which they were issued, and 
 under what ordinance. 
 
 Bonds for Special Assessment. —The council shall also 
 have power to borrow money at not more than seven per cent, 
 interest per annum, in anticipation of the collection of any 
 special assessment, and to issue bonds therefor. 
 
 Sale of Bonds. —All bonds shall be sold to the highest 
 bidder, after thirty days’ notice in at least two newspapers of 
 general circulation in the county where such corporation is 
 located. 
 
 Payment. —To provide for the payment of its bonds and 
 funded debt, a municipal corporation may create a sinking 
 fund, by levying and collecting, in addition to the other taxes, 
 a tax which shall not be less than one mill nor more than three 
 mills on the dollar, upon the taxable property of the corpo¬ 
 ration, which tax shall be paid into the treasury, and applied 
 to the payment of the bonds or debt, and to no other purpose. 
 
 SCHOOL BONDS. 
 
 Power to Issue. —The board of education in any dis¬ 
 trict, except a city district of the first class, for the purpose of 
 purchasing a site, or erecting a school-house, or to do either, 
 the cost of which will exceed the amount of tax that the board 
 is authorized to levy, and that will require the issuing of 
 
SUMMARY OP LAWS OF OHIO. 
 
 15 
 
 bonds, shall make an estimate of the cost, and submit to the 
 voters of the district at a general or special election the 
 question of levying taxes for such purposes. If a majority of 
 the votes are for the levy of such taxes, the board shall certify 
 the amount to be levied each year to the county auditor, who 
 shall place the same on the tax duplicate. 
 
 May Anticipate Levy. —The board of education may 
 anticipate the money to be raised, by borrowing the amount 
 necessary, not exceeding the sum authorized to be levied, and 
 issue bonds therefor, payable as indicated by the vote above, 
 bearing interest not exceeding six per cent., payable semi¬ 
 annually ; and in such denominations as the board may fix. 
 
 Form.— Such bonds shall be numbered consecutively, be 
 payable to bearer, bear date of sale, and be signed by the 
 board officially. 
 
 CITY SCHOOL BONDS. 
 
 Cities of the first class having less than one hundred thou¬ 
 sand population, may issue bonds to pay for lands bought or 
 appropriated for school purposes. The amount borrowed shall 
 not exceed two hundred thousand ($200,000) dollars. Such 
 bonds shall bear interest at any rate fixed by the council not 
 exceeding six per cent, per annum, payable semi-annually. 
 
SUMMARY OF THE LAWS OF ILLINOIS 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 Constitutional Limit. —The constitution of 1870 de¬ 
 clares that no county, city, township, school-district, or other 
 municipal corporation, shall contract indebtedness for any 
 purpose, including present indebtedness, which in the aggre¬ 
 gate shall exceed five per cent, on the value of the taxable 
 property therein. 
 
 Any such corporation incurring debt shall, before or at 
 the time, provide for the collection of a direct annual tax for 
 the payment of the interest thereon as it becomes due, and the 
 whole principal within twenty years. 
 
 This provision does not affect any bonds which may have 
 been voted prior to 1870. 
 
 Municipal Subscriptions. —Counties, cities, towns, or 
 other municipalities, are expressly prohibited, by the consti¬ 
 tution of 1870, from subscribing to the capital stock of rail¬ 
 roads or private corporations, or making donations or loaning 
 their credit in aid thereof. This article does not affect the 
 right of any municipality to make such subscriptions where 
 the same have been authorized under existing laws, by a vote 
 of the people prior to 1870. 
 
 COUNTY BONDS. 
 
 Authority to Issue. —The county board of any county, 
 for the purpose of erecting a court house, jail, work-house, or 
 
SUMMARY OF LAWS OF ILLINOIS. 
 
 17 
 
 other buildings for the use of the county, and in the perform¬ 
 ance of duties imposed by law , may submit to the voters of 
 such county the question of issuing bonds to meet the cost of 
 such work, at any general election; and if the majority of the 
 votes at such election are, “For County Bonds,” the board 
 mav issue bonds to such an amount that, including present 
 in Fbtedness, the debt of the county shall not exceed the con¬ 
 stitutional limit. 
 
 Form of Bonds. —Such bonds shall be payable in not 
 less than one year, nor more than twenty years; shall be in 
 sums of not more than one thousand dollars, nor less than 
 twenty-five dollars ; with interest not exceeding eight per cent, 
 per annum, payable annually or semi-annually. 
 
 Payment of Bonds. —County boards are authorized to 
 levy and collect taxes for county purposes, not exceeding 
 seventy five cents on the one hundred dollars of valuation, and 
 for the payment of interest and principal upon bonds. If the 
 amount to be raised requires a rate exceeding this limit, the 
 board may designate the bonds, and state the number of years 
 this additional tax will require to be levied, and submit the 
 question of the additional rate to the people of the county at 
 the next election for county officers, after having adopted 
 a resolution at a meeting of the board to submit it. If a 
 majority vote *“ For Additional Tax,” then such tax shall be 
 levied, collected, and applied to the payment of such bonds 
 and the interest thereon. 
 
 FUNDING BONDS OF COUNTIES, CITIES, ETC. 
 
 New Bonds May be Issued. —The corporate authorities 
 of counties, cities, towns, school-districts, or other municipal 
 corporations, where any such corporation has issued bonds, 
 may upon the surrender of such bonds, issue to the holders in 
 place thereof new bonds, to run for such terms not exceeding 
 twenty years, in such sums, bearing such rate of interest not 
 
18 
 
 SUMMARY OF LAWS OF ILLINOIS. 
 
 greater than seven per cent, per annum, as may he agreed 
 upon with the holders of such outstanding bonds. Bonds 
 issued under this act, to mature within five years, may bear 
 not exceeding eight per cent, interest.* 
 
 Act in force July 1, 1879. 
 
 Uniform Design. —It is the imperative duty of the state 
 auditor to prepare and prescribe a uniform draft, and style, 
 adapted to the different classes of bonds issued under this act, 
 to be used throughout the state, which bonds shall show’ upon 
 their face that they are issued under this act (June 4, 1879, 
 in force July 1, 1879), and the purpose for which they are 
 issued. 
 
 Manner of* Payment. —Upon the first class of bonds, 
 only the interest is payable annually. The second class con¬ 
 sists of those upon which the interest and five per cent, of the 
 principal are payable annually. The third class consists of 
 a graduated series : the first grade made payable, principal and 
 interest, in one year from issue ; th q second grade in two years, 
 and so to the end of the series. The class to be issued is 
 optional with the voters. 
 
 Limit of Issue. —The new bonds shall not be issued for 
 an amount in the aggregate greater than the principal and 
 accrued interest unpaid thereon, of the outstanding bonds. 
 
 Majority Tote Required. —No new bonds shall be issued 
 except upon a majority vote of the legal voters, at a general or 
 special election. 
 
 Sale of*. —The state auditor shall negotiate such bonds at 
 the best terms, and at not less than par. 
 
 Valuation of* Property Indorsed on Bonds. —When 
 any county or other municipal corporation shall issue new 
 bonds, the county clerk, or officer to whom the assessment 
 rolls for state taxation of the property in such corporation are 
 
 *Note.—S uch new bonds may be issued and sold to raise money to purchase 
 or retire any or all of the outstanding bonds. 
 
Note. — Any municipal corporation may negotiate its 
 bonds through its proper corporate authorities, at not less 
 than par value, without the intervention of the state auditor. 
 
SUMMARY OF LAWS OF ILLINOIS. 
 
 19 
 
 sent, shall within five days transmit to the auditor of public 
 accounts, a certificate setting forth the total value of all tax¬ 
 able property of every nature therein; and the auditor shall 
 indorse on the bonds a certificate of the amount of valuation 
 of taxable property of the municipality issuing the bonds, 
 specifically distinguishing the value of real estate and personal 
 property, based on the return of the county clerk, or upon the 
 affidavit of the officials of the corporation issuing the bonds. 
 
 How Toted Upon. —The corporate authorities of any 
 municipality may call elections, on the petition of ten voters 
 thereof, to submit the question of issuing bonds, by posting 
 notices in ten of the most public places in the county, town or 
 district, for at least twenty days previous to the election, and 
 publishing the same in the nearest newspaper, stating the 
 number and amount of bonds desired to be issued, the kind or 
 class, the amount of each, the rate of interest, when and where 
 payable, for what purpose issued, and the time and place of 
 such election. 
 
 The corporate authorities may submit the question at a 
 special election held and conducted as above. 
 
 Nothing herein affec. \e power conferred by an act of 
 the General Assembly, approved February 13, 1865, author¬ 
 izing the city of Chicago to issue new bonds in accordance 
 with its charter so amended by that act, nor in any wise affects 
 any other law authorizing municipalties to issue bonds, and 
 which does not provide that the same shall be registered. 
 
 Cancelation. —When any bond shall be surrendered, the 
 same shall be indorsed “ Canceled,” and shall be destroyed by 
 direction of the authorities issuing the same. 
 
 Registration. —Upon the issuing of new bonds, the clerk 
 or other officer having charge of the records of the fiscal affairs 
 of the municipal corporation issuing the same, shall register 
 them in a book kept in his office for that purpose, giving the 
 date, amount, number, class, date of maturity, rate of interest, 
 
20 
 
 SUMMARY OF LAWS OF ILLINOIS. 
 
 place of payment, and the description of the bonds in lieu of 
 which the new bonds are issued. Upon presentation of such 
 new bonds to the auditor of public accounts, to be registered, 
 he shall register them in the same form as above, and, further, 
 showing under what act, by what authority, for what purpose, 
 by what cjity, county, town, etc., issued, the name of the one 
 presenting the same for registration, and shall certify over his 
 official seal the fact of their registration. 
 
 Certificate of Legality. —No bonds issued under this 
 act shall be registered in the state auditor’s office until a 
 sworn certificate has been filed therein, alleging that all the 
 requirements of this act have been complied with. 
 
 In the case of county bonds the chairman of the county 
 board shall make the affidavit; in case of township bonds the 
 supervisor, in case of city bonds the mayor, in case of town or 
 village bonds, the chairman of the town or village board ; in 
 school-districts each director shall make such affidavit. 
 
 Auditor to Certify Rate. —The state auditor shall an¬ 
 nually certify to the county clerk of the county, in which any 
 municipal corporation issuing bonds is situated, or to the officer 
 whose duty it is to prepare the estimates, and books for the 
 collection of state taxes in such county, city, town, etc., the 
 rate per cent, necessary to meet the interest on the bends, 
 which rate shall be deemed added to the per centum to be 
 levied by law for the purpose of state revenue, and shall be 
 collected with the state taxes. 
 
 The county collector may, before settlement with the state 
 treasurer, pay any interest coupons that are due when pre¬ 
 sented, or the principal of such bonds out of such taxes. 
 
 State the Custodian. —The state is only the custodian 
 of the taxes so collected, and is not liable on account of such 
 bonds; but the tax is deemed pledged to the pagment of the 
 interest and principal of the bonds , and the state shall annu¬ 
 ally collect and apply the said tax to the satisfaction of the 
 interest and such part of the principal of such bonds as shall 
 
SUMMARY OP LAWS OF ILLINOIS. 
 
 21 
 
 be due, and indorse the payment on the back of the bonds 
 when paid, .and cancel and return the same to the municipality 
 that issued them. 
 
 Matured Bonds Not Paid. —When any registered bond 
 is not paid when due, the holder may register the same in the 
 state auditor’s office, as an unsatisfied bond; and to provide 
 for the payment of the principal at the rate of five per cent, 
 annually, and the interest in arrear, and to accrue in the 
 current year, together with the cost to the state of the col¬ 
 lection and disbursement thereof, the same proceedings may be 
 had as originally to meet the payment of interest and princi¬ 
 pal. See page 17. 
 
 Payment Entered. —When any such registered bond is 
 paid, and presentation thereof made to the auditor, he shall 
 make entry thereof in his office. 
 
 Execution of Bonds. —Bonds issued under this act shall 
 be executed in the following manner: 
 
 In counties under township organization, by the chairman 
 of the board of supervisors, and the clerk of the county attest¬ 
 ing the same, with his signature and official seal. In counties 
 not under township organization, by the acting chairman of 
 the board of county commissioners, and the county clerk at¬ 
 tested by his signature and official seal. City bonds, by the 
 mayor and city clerk, with seal of the city. In towns organ¬ 
 ized under the township law, by the supervisor or supervisors 
 and the town clerk. In school-districts or other municipal 
 corporations, by the chairman, or chief executive officer thereof, 
 and the clerk or secretary. 
 
 But no bonds shall be issued except upon a majority vote 
 of the people of the municipality. 
 
 Page 851, sec. 10a, R. S. 1888. 
 
 Sinking Fund. —When any county or other municipal 
 corporation shall owe any bonded debt not due, which is reg¬ 
 istered in the state auditor’s office, the corporate authorities 
 
 2 
 
22 
 
 SUMMARY OF LAWS OF ILLINOIS. 
 
 may, by resolution spread upon their records and certified to 
 the auditor, request him to create a sinking fund to meet such 
 debt, or any part thereof, when it shall become due. The reso¬ 
 lution shall state the principal amount to be provided, the 
 time when the same shall become due, and the amount to be 
 raised annually to pay the same. 
 
 Auditor to Fix Rate. —Upon the receipt of such reso¬ 
 lution the auditor shall file the same in his office, and in certi¬ 
 fying the amount of taxes to be raised in such district there¬ 
 after, he shall fix a rate to be denominated, “ Sinking Fund 
 Tax,” sufficient to produce the amount annually required, 
 which shall be levied, collected, and paid into the state treas¬ 
 ury the same as other taxes. 
 
 How Invested. —The state treasurer shall invest such 
 taxes when collected in U. S. government bonds, or in bonds 
 of the municipal corporation to which such fund belongs, at the 
 lowest price at which such bonds can be purchased, not to ex¬ 
 ceed the par value and accrued interest; and the proper cor¬ 
 porate authorities shall determine the kind of bonds they will 
 authorize to be bought with their funds, and fix the maximum 
 price to be paid for them. In case of the purchase of govern¬ 
 ment bonds, the treasurer shall receive the interest as it accrues, 
 and re-invest in the same kind of securities. In case of the 
 purchase of the bonds for which the sinking fund is created, 
 then the purchased bonds shall be returned to the corporation 
 that issued them, and be canceled or destroyed. 
 
 (Approved May 28, 1881. In force July 1, 1881.) Page 
 857, R. S. 1883. 
 
 CITY BONDS. 
 
 Power to Borrow Money. —City councils in cities, and 
 the president and board of trustees in villages and towns, may 
 borrow money on the credit of the corporation, for corporate 
 purposes , and issue bonds in such amounts and form, on such 
 
SUMMARY OF LAWS OF ILLINOIS. 
 
 23 
 
 conditions, in such denominations, to run for such terms not 
 exceeding twenty years, hearing such rate of interest not to 
 exceed eight per cent, per annum, payable annually or semi¬ 
 annually, as may be prescribed by ordinance. 
 
 Payment of Bonds. —Before, or at the time of incurring 
 any indebtedness, the city, village or town shall provide by a 
 direct annual tax for the payment of the interest on such debt 
 as it falls due, and the principal within twenty years. 
 
 Limit. —No city, village or town shall become indebted 
 to an amount exceeding five per cent, on the value of the tax¬ 
 able property therein. 
 
 Funding. —Cities, villages and towns may issue bonds in 
 place of, or to meet, maturing bonds, or for the consolidation 
 or funding of the same. See same as counties (act June 4, 
 1879), page 17. 
 
 Record of Bonds. —The comptroller, if there be one, or 
 clerk, shall keep a book or books in his office, in which shall 
 be entered a correct list of all the outstanding bonds of the 
 city, showing the number and amount of each, to whom issued; 
 and when any bonds are paid or canceled, the books shall 
 show the same. 
 
 IMPROVEMENT DISTRICT BONDS. 
 
 Authority to Issue. —Any city or village subject to 
 overflow, which may be prevented by levees or dykes, may lay 
 off and organize improvement districts , and have the cost of 
 the improvement contemplated estimated by a competent en¬ 
 gineer, and assessed on the lots and blocks benefited, and issue 
 bonds to an amount sufficient to pay the special assessments, 
 to run for any term not exceeding twenty years, bearing not 
 more than six per cent, interest per annum, to be in such form, 
 and payable at such time, as may be fixed by ordinance. 
 
24 
 
 SUMMARY OF LAWS OF ILLINOIS. 
 
 Indorsement. —Before such bonds are issued, the owners 
 of the lots charged with the assessment shall indorse on the 
 back of the bonds their consent thereto as follows : “I hereby 
 indorse the within bond, and consent that lot, lots, or parts 
 thereof therein designated, shall become liable for the interest 
 and principal therein named, and the same shall be a lien upon 
 said property from this date until paid olf and discharged.” 
 
 This.day of.188.... 
 
 .[Seal.] 
 
 Payment. —The city or village issuing bonds as above 
 shall provide for the payment of the same by an ordinance for 
 the collection of interest and principal from the property 
 charged with the special tax. Such city or village is not liable 
 for the interest and principal of such bonds, out of any fund 
 except the special fund of the district; and for the enforce¬ 
 ment of the ordinances for collection of the special tax. 
 
 Rights of the Holder. —The owner of such bonds may, 
 in addition to the powers given to the corporation issuing them, 
 to enforce their payment, have his personal remedy in any 
 court against the indorser for his failure to pay interest or 
 principal, and the holder may enforce his lien by foreclosure 
 in any court of competent jurisdiction in this state. 
 
 SCHOOL BONDS. 
 
 Directors May Issue. —For the purpose of building, re¬ 
 pairing, or improving school-houses, or purchasing school sites, 
 the directors, by a majority vote of the people of any school 
 district, at an election called as provided in chap. 122, sec. 42, 
 page 1027, R. S. 1883, may borrow money and issue bonds, 
 executed by the officers, or at least two members of the board, 
 in sums of not less than one hundred dollars, bearing not more 
 than eight per cent, interest per annum, payable annually or 
 semi-annually, and to run for such terms as the board of 
 directors may fix. 
 
SUMMARY OF LAWS OF ILLINOIS. 
 
 25 
 
 Limit. —The amount borrowed in any one year shall not 
 exceed jive 'per cent, (including present indebtedness) of the 
 taxable property of the district. 
 
 Registered. —All bonds so issued shall first be registered, 
 numbered, and countersigned by the school treasurer of the 
 township where the school-house is, or is to be, located, in a 
 “bond register” book, which book shall show a record of the 
 election authorizing the directors to borrow money, a descrip¬ 
 tion of the bonds issued, as to number, date, to whom issued, 
 amount, rate of interest, and date of maturity. 
 
 Limit of Tax Levied. —The tax levied in any one year 
 for building school-houses shall not exceed three per cent, of 
 the value of the taxable property of the school-district, except 
 to pay indebtedness previous to July 1, 1872. 
 
 Cancelation. —When any bonds are paid, the township 
 treasurer shall cancel the same, and enter in the “ bond regis¬ 
 ter:” “Paid and canceled this. day of. 
 
 A. D. 188....” 
 
 Funding. —Same as under counties, cities, towns, etc. 
 See page 17. 
 
SUMMARY OF THE LAWS OF WISCONSIN 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 Municipal Subscriptions. —Any county, town, city, or 
 village may issue negotiable corporate bonds in payment of 
 any authorized subscription to the stock or mortgage bonds, 
 issued by any corporation or company for the purpose of 
 building a railway. 
 
 Liability. —When any municipal corporation shall issue 
 bonds, all the territory in such corporation shall become and 
 remain liable for the payment of the same, until such bonds 
 are fully paid. 
 
 Constitutional Limit. —No county, city, town, village, 
 school-district, or other municipal corporation, shall be allowed 
 to become indebted in any manner, or for any purpose, to an 
 amount including existing indebtedness exceeding five per 
 cent, on the value of the taxable property therein. Any 
 municipal corporation incurring any debt shall, before or at 
 the time of doing so, provide for the collection of a direct tax 
 annually, sufficient to pay the interest on such debt as it falls 
 due, and also to pay the principal thereof, within twenty 
 years. [Amendment to Art. XI, Sec. 3, Constitution.] 
 
 COUNTY BONDS. 
 
 Power to Issue. — The board of county commissioners, 
 for the purpose of providing county buildings, may issue 
 bonds of the county, not to exceed in amount one and one-half 
 
SUMMARY OF LAWS OF WISCONSIN. 
 
 27 
 
 per cent, on the assessed valuation of the taxable property in 
 such county. 
 
 Issued Under Ordinance. — All bonds must be issued 
 in pursuance of a resolution, or ordinance of the county 
 board, passed at an annual, or adjourned annual, or special 
 meeting, held pursuant to law, which ordinance shall fix the 
 amount of bonds, the denomination, time (not more than 
 twenty years), place of payment of interest and principal, 
 rate of interest (not exceeding ten per cent.), manner in 
 which they shall be negotiated, and provide for a direct 
 annual tax to pay the interest and principal. 
 
 How Executed. — Such bonds shall be signed by the 
 chairman of the county board and county clerk, officially, 
 and sealed with the county seal. 
 
 Sale of Bonds. — The bonds shall be first offered for 
 sale in the county, city or town issuing them, for thirty days 
 pursuant to notice, to the highest bidder, at not less than par 
 value. 
 
 Payment. — The faith of the county stands irrevocably 
 pledged for the prompt payment of the interest and principal 
 of the bonds, and the tax provided to be levied cannot be 
 repealed , but shall be annually collected and kept as a 
 separate fund. 
 
 Refunding. — Any county, city or town may pay up 
 or retire its bonded indebtness, by issuing new bonds in the 
 same amount, at a rate of interest not exceeding the interest 
 of the old bonds; provided this can be done by the payment 
 of the money realized from the sale of the new bonds. When 
 any bonds of a county, city or town shall become due, or in 
 anticipation thereof, the constituted authorities may issue new 
 bonds, running not more than twenty years, in sums not 
 exceeding one hundred dollars, nor less than twenty-five 
 dollars. When such bonds have been offered for sale for 
 thirty days, they may be issued in any denomination, in the 
 discretion of the proper authorities. 
 
28 
 
 SUMMARY OF LAAVS OF WISCONSIN. 
 
 CITY BONDS. 
 
 Cities May Borrow Money and Issue. — To provide 
 for the purchase or erection of public buildings, pumps, water 
 mains, reservoirs, waterworks; to lay out or improve streets, 
 parks or cemeteries; to build school-houses, or to do any 
 other work in the lawful power of such corporation, any city 
 or village may borrow money and issue negotiable bonds. 
 
 Proposition Submitted. —No town, city, or village 
 shall issue bonds in any case until the purpose thereof shall 
 have been submitted to a vote of the people, and adopted by a 
 majority vote. 
 
 Form. — The form of these bonds shall be such as to 
 properly carry out the ordinance under which they are issued, 
 which the council or municipal board shall prescribe, and 
 shall be signed : in the case of town bonds, by the chairman of 
 the board and town clerk; in the case of village bonds, by the 
 president and the clerk of the village board; in the case of 
 city bonds, by the mayor and city clerk, with the seal of the 
 respective municipality attached. 
 
 Payment of Bonds. —The town board, village board, or 
 council, of any town, village or city which is indebted upon 
 bonds, shall provide a sinking fund for the payment of such 
 indebtedness by levying and collecting each year, a tax upon 
 the property of the municipality, not exceeding six mills on the 
 dollar, and may set aside all moneys received from licenses or 
 other sources not directed by law to be otherwise expended. 
 
 Cancelation. — The clerk of a village, town, county, or 
 city, shall keep a “ cancelation book,” and enter therein the 
 record of every bond or coupon issued, and also the date of 
 their cancelation. 
 
SUMMARY OF LAWS OF WISCONSIN. 
 
 29 
 
 TOWN BONDS. 
 
 When May he Issued.* —The town board of any town 
 in this state, upon a majority vote, at an annual or special meet¬ 
 ing, may issue bonds for the purpose of building a bridge over 
 any stream in the town, the cost of which is to exceed two thou¬ 
 sand dollars; but the amount of such bonds shall not exceed 
 five thousand dollars. 
 
 Funding Bonds. — The town meeting may authorize the 
 settlement, or compromise, of any outstanding bonds, and pro¬ 
 vide how the money for such purpose shall be raised; and 
 may authorize the town board to issue bonds not exceeding 
 the amount to be compromised. Such new bonds shall be 
 payable within five years from date thereof. 
 
 Notice. — The town board must give previous notice that 
 such a proposition will be presented to the town meeting, and 
 a resolution to submit the question of issuing bonds to fund 
 certain indebtness must be publicly read before the town 
 meeting, and be voted upon. 
 
 Resolution Required. — No bonds shall be issued, ex¬ 
 cept in pursuance of a resolution, adopted by a town meeting, 
 nor unless the resolution shall specify the amount of bonds to 
 be issued, the denominations, time and place of payment, 
 the rate of interest, not greater than eight per cent, per 
 annum; and also further provide for a tax to pay the interest 
 as it falls due, and the principal within the time fixed. 
 
 The faith of the town is pledged irrevocably for the 
 prompt payment of its bonds and the interest thereon. The 
 tax for this purpose is incapable of repeal, and shall be col¬ 
 lected annually, and kept in a separate fund. 
 
 *NoTE.-The authority to issue municipal or public bonds of a city or 
 town, implies the power to make them negotiable. 
 
SUMMARY OF THE LAWS OF MINNESOTA 
 GOVERNING MUNICIPAL BONDS. 
 
 COUNTY BONDS. 
 
 Authorized by Special Acts. — The county commis¬ 
 sioners of counties in this state are authorized by special acts 
 of the legislature to issue the bonds of their respective coun¬ 
 ties, for the purpose of building court houses, jails, or other 
 public building for the use of the county. 
 
 Question Submitted. —The act authorizing any county 
 board to issue bonds of the county, requires that the question 
 of issuing such bonds shall be submitted to a vote of the 
 people. If a majority of the votes cast are “ For Issuing 
 Bonds,” then the board of county commissioners may issue 
 such bonds in accordance with the act authorizing them. 
 
 Form of Bonds. —The special act authorizing the bonds 
 prescribes the form, time the bonds are to run, rate of interest 
 they shall bear, the denominations in which they are to be 
 issued, how they shall be executed, and the time and manner 
 of the payment of the interest and principal thereof. 
 
 CITY BONDS. 
 
 Power to Issue. — The common council of any city may 
 borrow money to pay the indebtedness thereof, and issue the 
 bonds of the city therefor, redeemable at any time within ten 
 years, at the pleasure of the common council. Such bonds 
 shall not bear exceeding ten per cent, interest per annum, 
 payable in such manner, and at such time and place, as the 
 council shall determine. 
 
SUMMARY OF LAWS OF MINNES 
 
 BRK* 1 > 
 
 Limit of Debt. — At no time shall the bonded debt of 
 such city exceed the sum of fifteen thousand dollars, unless 
 authorized by a two-thirds vote of the people at an election 
 called for that purpose. Provided: that the city council 
 shall, each year, levy a tax of one mill on the dollar of the 
 taxable property of the city, for each one thousand dollars 
 that may be refunded by the city into bonds, to pay the 
 interest on said bonds, and create a sinking fund to pay the 
 principal of the same when due. 
 
 TOWN BONDS. 
 
 Authority to Issue. — The board of supervisors of the 
 organized townships of this state may issue bonds of their 
 respective towns, with coupons attached, in such amounts and 
 at such periods as they may be authorized to do so, by a two- 
 thirds vote of the voters present at a called town meeting held 
 for that purpose; and by the same vote, the manner of pay¬ 
 ment of the bonds, the amounts, the time to run, not exceed¬ 
 ing six years; and the interest they shall draw, not exceeding 
 ten per cent, per annum, payable annually, shall be deter¬ 
 mined. 
 
 How Executed. —The bonds thus issued shall be signed 
 by the chairman of the board of supervisors, and counter¬ 
 signed by the clerk of the town. 
 
 Notice of Meeting. — The notice of the town meeting 
 called to vote upon the question of issuing bonds, shall state 
 the object of the meeting, and be posted in three public 
 places,* for at least ten days before the meeting is held. 
 
 Sale of Bonds. — Such bonds shall not be sold for less 
 than par. 
 
 * The legal voters present at the annual town meeting shall designate 
 three places in the town as the most public places, and all legal notices shall be 
 posted in such places. 
 
82 
 
 SUMMARY OF LAWS OF MINNESOTA. 
 
 Payment. — The board of supervisors shall provide for 
 the payment of the interest and principal of the bonds, by 
 certifying a tax upon the taxable property of the town, equal 
 to the interest and principal maturing next after the levy; 
 and in their discretion a further sum, not exceeding twenty 
 per cent, of such maturing bonds, which shall constitute a 
 sinking fund for the payment of the bonds. 
 
 CITIES, TOWNS AND VILLAGES. 
 
 May Issue Bonds. — The council of any city, town or 
 village, whose population does not exceed ten thousand, may 
 for the purpose of erecting a city hall, market-house, engine- 
 house, city offices, or city prison, issue bonds not to exceed in 
 amount two per cent, of the total assessed value of the 
 property thereof. 
 
 How Voted. — Before such bonds can be issued the 
 question must be submitted, and the bonds authorized by a 
 majority vote of the people. 
 
 Form. — The bonds shall be issued in sums not exceeding 
 five hundred dollars, as shall be determined by a resolution 
 of the council; and shall be payable in not less than five, nor 
 more than twenty years, with interest not exceeding seven per 
 cent, annually. 
 
 How Executed. — The mayor, or chief executive officer, 
 shall sign the bonds, when they shall be attested by the 
 recorder or clerk, and the seal of the city attached thereto. 
 
 SCHOOL BONDS. 
 
 Power to Issue. — The trustees, or board of education 
 of any school-district, may issue the bonds of their respective 
 districts, with interest coupons, for such amount, in such 
 denominations, to run for any period, not exceeding ten years, 
 
SUMMARY OF LAWS OF MINNESOTA. 
 
 33 
 
 bearing not more than ten per cent, interest per annum, as 
 may be determined by a two-thirds vote, at a meeting of the 
 legal voters called for that purpose. 
 
 Sale of* Bonds. — Such bonds shall not be sold for less 
 than their par value, nor shall the bonds, or the proceeds 
 thereof, be used for any other purpose than the erection, com¬ 
 pletion, and furnishing of a school-house in and for the 
 district issuing such bonds. 
 
 Payment of Bonds. — The board of education, or trus¬ 
 tees, shall provide for the payment of the interest and princi¬ 
 pal of any bonds issued by them, by certifying to the county 
 auditor on or before October 10, each year, a tax, equal in 
 amount to the interest and principal falling due next after 
 the levy; and they may, in their discretion, levy such further 
 sum, not greater than twenty per cent, of the interest and 
 principal maturing; which tax shall be paid in money, and 
 applied to the interest and principal of the bonds. 
 
SUMMARY OF THE LAWS OF IOWA 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 Constitutional Limit.* —The amount of indebtedness 
 which any county or other municipal corporation may contract 
 shall not exceed in the aggregate jive per centum of the value 
 of the taxable property within such corporation. 
 
 Decision. —An independent school-district is such a cor¬ 
 poration within the meaning of the constitution. 
 
 Winspear v. Dist. Town of Holman, 37-542. 
 
 Decision. —Bonds in excess of constitutional limit are 
 void in the hands of innocent holders for value. 
 
 McPherson v. Foster, 43-48. 
 
 Decision. —Bonds issued in payment of a judgment, re¬ 
 covered on debts contracted in violation of this section, are 
 valid in hands of innocent holders for value. 
 
 C. S. & St. P. R. R. Co. v. Co. of Osceola, 45-168. 
 
 As Capital Stock. —Bonds issued to railways by any 
 municipal corporation as capital stock are null and void. 
 
 Purchase by Officers. —Officers of municipal corpora¬ 
 tions cannot purchase bonds or other evidences of indebted¬ 
 ness at a discount. 
 
 *Note.— Where a municipal corporation issues bonds in excess of the con¬ 
 stitutional limit, such bonds are valid to the extent of the limit , and invalid beyond 
 such limit. 
 
SUMMARY OF LAWS OF IOWA. 
 
 35 
 
 COUNTY BONDS. 
 
 Authority to Issue. —The board of supervisors of any 
 county may, upon a majority vote of the electors of such 
 county, borrow money for the purpose of erecting the necessary 
 buildings for the use of the county, and constructing bridges, 
 and highways, and issue bonds of the county for the payment 
 of the indebtedness thus contracted. 
 
 Form. —Such bonds shall run for any period not exceed¬ 
 ing ten years; and shall be for such sums, bear such rate of 
 interest not exceeding ten per cent, per annum, payable 
 annually or semi-annually, as the board of supervisors may 
 designate. 
 
 How Toted Upon. —Before any such bonds can be issued, 
 the board of supervisors shall submit the question of borrowing 
 money to erect any public building, to the people of the county, 
 at a regular or special election. Notices of such election, 
 giving the amount to be raised, the tax to be levied, the rate 
 per annum, shall be published at least four weeks in some 
 newspaper printed in the county. If there be no such paper, 
 one notice at least shall be posted in the most public place in 
 each township in the county, one being on the court house 
 door, for at least thirty days previous to the election. Such 
 notices shall give the time when the question shall be voted 
 on, and the form of the question. A proposition to levy a tax 
 in payment of the bonds so raised , in addition to the usual 
 taxes , must accompany the question to borrow money and issue 
 bonds , and no vote adopting the question will be of any effect 
 unless it adopt the proposition to levy the tax also. 
 
 Payment of Bonds. —A rate of tax shall be assessed 
 which shall be sufficient to meet the interest and principal of 
 the bonds in not exceeding ten years. If the levy of one year 
 shall not be sufficient to pay the entire amount, the proposition 
 and vote must be, to continue the proposed rate from year to 
 year until the amount is paid. 
 
36 
 
 SUMMARY OF LAWS OF IOWA. 
 
 Funding. —The board of supervisors of any county whose 
 indebtedness January 1, 1884, exceeded five thousand dollars 
 may, by a vote of two-thirds of all the members, fund the same, 
 and issue bonds of the county therefor, in sums of not less 
 than one hundred, nor more than one thousand dollars ; to run 
 for any term not exceeding ten years; bearing not more than 
 six per cent, interest per annum, payable semi-annually. 
 
 Supervisors Liable. —In counties of four thousand in¬ 
 habitants, or more, the supervisors are personally liable for 
 any bonds issued in excess of the constitutional limit. 
 
 Page 64, sec. 2, McClain’s annotated statutes, 1880. 
 
 Dispositiou of. —Bonds issued to fund county indebted¬ 
 ness shall be properly executed, numbered consecutively, be¬ 
 ginning at the lowest number, sealed and delivered to the 
 county treasurer, who shall receipt for the same, and stand 
 charged on his official bond therefor. 
 
 Page 64, sec. 290, McClain’s annotated statutes, 1880 
 
 Cancelation. —When county bonds are exchanged for 
 warrants, and other evidences of county indebtedness, the 
 treasurer shall cancel such evidences of debt, by indorsing on 
 the face thereof the amount for which they were received, the 
 word “Canceled,” and the date of cancelation. 
 
 Record of Bonds. —The county treasurer shall also keep 
 a record of bonds sold, or exchanged by him, by number, date 
 of sale, amount, date of maturity, name and post-office address 
 of purchaser, and if exchanged, what evidence of indebtedness 
 was received therefor, which record shall be open for inspection 
 to the public. 
 
 Notice of Purchase. —When the holder of a bond sells, 
 or transfers it, the purchaser shall notify the treasurer, giving 
 number of bond transferred, and post-office address. 
 
 Levy to Pay Bonds. —The board of supervisors shall by 
 assessment and levy each year upon the taxable property of 
 
SUMMARY OF LAWS OF IOWA. 
 
 37 
 
 the county, raise a sum sufficient to pay the interest on out¬ 
 standing bonds, and such proportion of the principal that, at 
 the end of three years, the sum raised shall equal at least 
 twenty per cent, of the amount of bonds issued; at the end 
 of five years at least forty per cent, of the amount; and at 
 maturity of the bonds shall equal the whole amount of the 
 principal and interest. 
 
 Redemption. —The treasurer of any county may notify 
 a bondholder that he is ready to redeem, and if the bonds are 
 not presented for payment within thirty days after such notice, 
 the interest on such bonds shall cease. 
 
 All redemptions shall be made in the order of their 
 issuance. 
 
 Insufficient Levy. —If the board of supervisors of any 
 county fail to make the necessary levy to pay bonds, or inter¬ 
 est coupons when due, and the treasurer refuses payment 
 thereof, the owner may file such bond and unpaid coupons with 
 the state auditor, who shall register them in his office, and the 
 executive council at its next meeting as a board of equalization, 
 and at each annual equalization thereafter, shall add to the 
 state tax to be levied in said county, a rate sufficient to meet 
 the principal and interest past due, and falling due prior to 
 the next levy; which shall be collected as a part of the state 
 tax, paid into the state treasury, and placed to the credit of 
 such bond-tax; and shall be paid by warrant as the payments 
 mature. 
 
 Levy to Pay. —The board of supervisors of any county 
 cannot levy taxes to pay bonded indebtedness, except as on 
 page 36, under “Funding.” 
 
 REFUNDING. 
 
 Refunding. —Counties, cities and towns may, by a two- 
 thirds vote of the board of supervisors, or city or town council, 
 refund their outstanding bonds and issue coupon bonds, in 
 
 3 
 
38 
 
 SUMMARY OF LAWS OF IOWA. 
 
 sums not less than one hundred, nor more than one thousand 
 dollars; redeemable in lawful money of the United States, at 
 pleasure, after five years, to run not more than twenty years; 
 bearing not exceeding eight per cent, interest, payable semi¬ 
 annually. 
 
 Sale of. —The treasurer of the county shall sell such bonds 
 at not less than par value, or exchange, par for par. 
 
 Payment of Interest. —The board of supervisors shall, 
 by assessment and levy, raise a sufficient sum to pay the in¬ 
 terest on such bonds, and such proportion of the principal that, 
 at the end of eight years, the sum raised shall equal at least 
 fifteen per cent, of the amount of the bonds ; at the end of ten 
 years, thirty per cent., and, before maturity, shall equal the 
 whole amount of principal and interest. 
 
 Redemption. —Same as under “ Funding,” page 37. 
 
 Insufficient Levy. —In case of insufficient levy to pay 
 interest, the same proceedings may be had as on page 37, 
 under “ Funding.” 
 
 BONDS OF CITIES AND TOWNS. 
 
 Loans. —Any municipal corporation may negotiate loans 
 in anticipation of its revenues, not to exceed in the aggregate 
 jive per centum on the value of the taxable property of such 
 municipality . 
 
 This provision does not apply to cities of less than fhree 
 thousand five hundred inhabitants, nor more than six thousand 
 inhabitants; in all other case3 such loans shall not exceed the 
 sum of three per cent, on such property. 
 
 Power to Issue Bonds. —Cities and towns may issue 
 bonds in payment of loans negotiated by them, for an amount 
 not exceeding the limit as fixed above; running for such 
 periods, and bearing such a rate of interest, as may be deter¬ 
 mined by ordinance of the city or town council. 
 
SUMMARY OF LAWS OF IOWA. 
 
 89 
 
 Payment. —The council of any municipal corporation 
 may, to meet the interest and principal on any bonds issued 
 by such corporation, and outstanding, create a sinking fund, 
 by levying and collecting, in addition to the other taxes of such 
 municipality, a tax of not more than two mills on the dollar, 
 upon the assessed value of the property of such corporation, 
 which tax shall be paid into the city or town treasury, and be 
 applied to the payment of its bonds and funded debt. 
 
 Funding Indebtedness. —Cities and towns may settle, 
 renew or extend their indebtedness, as evidenced by outstand¬ 
 ing bonds, and issue new securities for such indebtedness. 
 
 Amount Limited. —New bonds issued to extend any in¬ 
 debtedness shall not be for a greater sum than the principal 
 and accrued interest on the bonds for which the new bonds 
 are issued. This applies only to the settlement, extension or 
 renewal of outstanding bonds, and not to the current expenses 
 of such corporations. 
 
 May Levy Tax to Pay. —Any city or town that shall 
 thus extend its indebtedness shall provide for the payment of 
 the interest and principal of such new bonds by levy and col¬ 
 lection of the necessary taxes. 
 
 Refunding. —Same as counties, see page 37. 
 
 Redeeming. —See counties, cities and towns, page 37. 
 
 Payment of Interest. —See counties, page 37. 
 
 Note. —Similar powers are given to cities under special 
 charter. 
 
 SCHOOL BONDS. 
 
 School-Districts May Issue. — Independent school- 
 districts, for the purpose of erecting and completing school- 
 houses, and to redeem outstanding indebtedness, may borrow 
 money and issue negotiable bonds of the district, to run any 
 
40 
 
 SUMMARY OF LAWS OF IOWA. 
 
 period not exceeding ten years; bearing not more than ten 
 per cent, interest per annum, payable semi-annually. But 
 no district shall incur, including present indebtedness, a debt 
 which shall exceed in the aggregate five per cent, on the value 
 of the taxable property thereof. Sec. 1821, McClain’s an¬ 
 notated statutes, 1880. 
 
 How Toted Upon. —The question of issuing bonds may 
 be submitted by the directors of any independent school- 
 district to the voters of the district, at the annual or a special 
 meeting, such notice being given of the same as is required by 
 law for the election of district officers; and the amount pro¬ 
 posed to be raised by the sale of the bonds. If a majority 
 of the votes cast at such election favor the loan, and issue of 
 bonds, then the board may issue bonds to the amount voted 
 in denominations not less than twenty-five dollars, nor exceed¬ 
 ing one thousand dollars, payable at the pleasure of the 
 district, at any time before maturity. 
 
 How Executed. — The bonds shall be in the name of the 
 district issuing them; signed by the president of the board, 
 and attested by the secretary. 
 
 Disposition of. —When the bonds are executed they shall 
 be delivered to the treasurer, who shall negotiate them at not 
 less than par value, and countersign them when negotiated. 
 
 Payment. —If the electors of an independent school- 
 district fail at the annual meeting any year to vote a sufficient 
 tax to raise a sum to pay the interest on its bonds, and such 
 proportion of the principal as will pay off the bonds at ma¬ 
 turity, then the board of directors shall vote a sufficient tax for 
 this purpose, and shall cause the same to be certified and 
 collected as other school-taxes are. 
 
 Funding Indebtedness. —Any independent school-dis¬ 
 trict, or district township having a bonded indebtedness, may 
 
SUMMARY OF LAWS OF IOWA. 
 
 41 
 
 upon the adoption of a resolution, by a two-thirds vote of the 
 board of directors, issue bonds to fund such indebtedness.* 
 
 Form of Bonds. —Such bonds shall be in denominations 
 of not less than one hundred nor more than one thousand dol¬ 
 lars ; shall run not more than ten years, and he payable at 
 pleasure of the district after five years; shall bear not exceed¬ 
 ing seven per cent, interest per annum, payable semi-annually, 
 shall be in the name of the district issuing them, and signed 
 by the president and countersigned by the secretary thereof. 
 The principal and interest shall be made payable whenever 
 the board of directors shall determine by resolution. 
 
 When Interest Ceases. —Interest on the bonds shall 
 cease if they are not presented far payment within ninety days 
 after notice from the treasurer that the district is ready to 
 redeem, and the amount it desires to pay. 
 
 Payment. —See page 40. 
 
 *Tlie resolution to issue bonds to fund indebtedness shall not be valid 
 unless adopted by a two-thirds vote. 
 
SUMMARY OF THE LAWS OF MISSOURI 
 GOVERNING MUNICIPAL BONDS. 
 
 Constitutional Limit. —No county, city, town, township, 
 school-district, or other political corporation, shall contract 
 debt in any manner, or for any purpose, exceeding in amount 
 in any one year the income and revenue of such year, without 
 the assent of two-thirds of the voters, at an election held for 
 that purpose; nor in cases requiring such assent shall indebted¬ 
 ness be incurred exceeding, present indebtedness included, five 
 per cent, on the valuation of the taxable property therein. 
 Any such corporation contracting debt shall provide for the 
 payment of the same, by an annual tax to pay the interest 
 as it falls due, and shall constitute a sinking fund to pay the 
 principal within twenty years. 
 
 COUNTY BONDS. 
 
 How Issued. —The county courts may issue the bonds 
 of their respective counties to provide for the erection of a 
 court house, jail, or for the construction of bridges, or repair 
 of the same, in such amount as they may determine, not 
 exceeding the sum of ten thousand dollars; but a larger sum 
 may be issued if authorized by a majority vote of the people, 
 at an election held for that purpose. 
 
 Form of Bonds. —The court shall prescribe the form, 
 time to run, not exceeding twenty years, the denominations, 
 and the rate of interest, and manner of payment of such 
 bonds. 
 
SUMMARY OF LAWS OF MISSOURI. 
 
 43 
 
 Treasurer’s Liability. —The treasurer of a county, 
 city, or township, and his securities, are responsible for the 
 safe keeping and transportation of all bonds coming into his 
 hands. 
 
 Bond Statement. —The clerk, comptroller, or chief 
 financial officer of a county, city or town, shall furnish the 
 state auditor a sworn statement of all the bonds and coupons 
 outstanding, with a full description of the same, and such 
 officer shall annually thereafter report to the state auditor the 
 bonds retired since his last report, and the auditor shall enter 
 the bonds upon his record. 
 
 Bonds Registered. —All bonds issued by a county, city, 
 or town, before they are valid or negotiable, must be regis¬ 
 tered with the state auditor, who shall certify by indorsement 
 that all the conditions of the law governing their issue have 
 been complied with.* 
 
 Auditor’s Statement. —The state auditor shall, on or 
 before July 1, each year, certify to the county court, city 
 council, or town trustees, as the case may be, the amount 
 required in the next fiscal year to pay the interest coupons 
 maturing on bonds, which amount shall be levied as a special 
 tax upon the property of the municipality, and be collected 
 with the state revenue and paid over to the treasurer of the 
 county, city or town which issued the bonds, and be deposited 
 to the credit of the proper county or city. 
 
 Payment. —See page 42, under “ Constitutional Limit.” 
 
 Funding Bonds. —Any county for itself, or for any 
 township, or part of a township therein, for which such county 
 has issued any bonds, may enter into a contract with any 
 person or corporation for the purchase, compromise or redemp¬ 
 tion of its bonds, whether they are due or not due, and for 
 
 * Bonds issued by a municipal corporation for gas-works, water-works, or 
 bonds of a city or county of more than three hundred thousand population, 
 are exempt from registration. 
 
44 
 
 SUMMARY OF LAWS OF MISSOURI. 
 
 this purpose may issue and sell new bonds, on the surrender 
 and cancelation of the old bonds. The amount of indebted¬ 
 ness shall not be increased by the new issue of bonds, nor 
 shall the new bonds be payable in less than five, nor more 
 than thirty years. The new bonds shall be in denominations 
 not less than one hundred dollars, nor more than one thousand 
 dollars, bearing not exceeding six per cent, interest per annum, 
 payable annually, and have interest coupons attached. 
 
 Proposition to Fund. —Before the county courts or 
 municipal authorities shall fund their bonded indebtedness, 
 the proposition to fund and compromise such debt shall first 
 be submitted to the voters of the county or cicv, at an election 
 held for that purpose. The proposition must be in writing, 
 giving the amount, principal and interest of outstanding 
 bonds, purpose for which originally issued, rate of interest, 
 time of maturity, the amount on the dollar for which said 
 bonds are to be compromised and funded, number of years the 
 proposed bonds are to run, and the rate of interest; and be 
 signed by the court, or municipal authorities, and published 
 for thirty days in a daily newspaper, or in a weekly newspa¬ 
 per for four successive weeks prior to the election. If there 
 is no such paper, then notice may be given by posting hand¬ 
 bills in twenty-five of the most public places. 
 
 Payment. —Any county, city, town or township so fund¬ 
 ing its bonds shall provide for the payment of the interest on 
 the bonds by the levy and collection of an annual tax; and 
 the county court or municipal authorities may, at the time of 
 levying taxes for county or city purposes, also levy a special 
 tax, not exceeding five mills on the dollar, in any one year, 
 which may be extended as other taxes are; and the proceeds 
 may be invested in county, city, or United States bonds at 
 the lowest market value. 
 
SUMMARY OF LAWS OF MISSOURI. 
 
 45 
 
 CITY BONDS. 
 
 CITIES OF THE FIRST CLASS. 
 
 May Issue Bonds. —The mayor and assembly of any 
 city of the first class may borrow money, on the credit of the 
 city, and issue bonds therefor in such amount, to run for such 
 term of years, in such denominations as may be required for 
 current expenses, and in payment of outstanding bonds com¬ 
 ing due. 
 
 CITIES OF THE SECOND CLASS. 
 
 Bonds of. —Any city of the second class may, upon the 
 passage of an ordinance by the common council, approved by 
 the mayor, provide for the issue and sale of bonds of the city, 
 to borrow money for any public work or improvement. 
 
 The ordinance shall specify the work for which the bonds 
 are to be issued, and the amount of bonds, and shall provide 
 that the bonds shall bear date not later than ninety days from 
 the approval of the ordinance ; also that the bonds shall bear 
 not more than six per cent, interest, payable semi-annually on 
 presentation and surrender of the coupons; also that the city 
 shall collect an annual tax to pay the interest as it falls due, 
 and constitute a sinking fund for the payment of the principal 
 within twenty years from date of issue. 
 
 Certificate of Circuit Judge. —After the passage of 
 such ordinance, the city counselor and city comptroller shall 
 present the same to a judge of the circuit court of the county 
 in which the city issuing the bonds is located, and submit a 
 sworn statement of the city comptroller, showing what the 
 total indebtedness of the city will be when the bonds are 
 issued; also satisfactory proof of the value of the taxable 
 property of such city. If the judge is satisfied that such 
 bonds can be lawfully issued, he shall so certify on the back 
 of the original ordinance. 
 
46 
 
 SUMMARY OF LAWS OF MISSOURI. 
 
 Proposition Submitted. —Before such bonds can be 
 issued, a proposition to issue them must be submitted to the 
 voters of the city, at an election called for that purpose. If 
 two-thirds of those voting at such election favor the issuing of 
 the bonds, then they may be issued. 
 
 Amount. —The amount of such bonds shall not exceed 
 five per cent of the assessed value of the taxable property of 
 the city. 
 
 Registration. —Such bonds, before they are valid or 
 negotiable, must be registered with the state auditor. 
 
 Sale. —The council shall negotiate such bonds at not less 
 than their par value. 
 
 Redemption. —These bonds may be called for redemp¬ 
 tion at pleasure of the city comptroller; and the interest on 
 the same ceases upon the maturity of the first-interest coupon 
 after such call. 
 
 Numbered. —The bonds shall be numbered consecutively 
 from one up. 
 
 CITIES OF THE THIRD CLASS. 
 
 Authority to Issue.— The mayor and council of cities 
 of the third class may issue bonds, payable in one year, to an 
 amount not exceeding one-half of the current revenue for the 
 fiscal year; and may also issue bonds in renewal of other 
 bonds of the city coming due, which the city has no funds to 
 pay. The new bonds shall not bear a greater interest than 
 the original bonds, nor run for more than ten years; and may 
 also issue bonds to fund the floating indebtedness of the city, 
 bearing not exceeding seven per cent, interest per annum. 
 
 Funding Bonds. — Cities and towns may fund any part or 
 all of their bonded indebtedness at a lower rate of interest; and 
 for that purpose may issue renewal bonds, payable at pleasure 
 within twenty years, bearing not more than seven per cent. 
 
SUMMARY OF LAWS OF MISSOURI. 
 
 47 
 
 interest per annum, payable annually or semi-annually. No 
 such bonds are valid unless authorized by a majority vote of 
 the people. 
 
 Sale—Redemption—Cancelation. — Any city issuing 
 bonds may negotiate them, and apply the proceeds to the pay¬ 
 ment of outstanding bonds. All bonds redeemed shall be 
 publicly burned, a description of the same being preserved. 
 
 SCHOOL BONDS. 
 
 Power to Issue. —The board of directors of any school- 
 district, or the board of education of any city or town, may, 
 for the pupose of erecting school-buildings, issue bonds of the 
 district, city, or town school-district, in amount, denomination, 
 and for such period of years, bearing not more than ten per 
 cent, interest per annum, as the annual meeting may determine 
 by a majority vote. 
 
 Payment. —The directors or board of education, as the 
 case may be, shall provide for the payment of the interest and 
 principal of such bonds, by a direct annual tax, as in case of 
 county or city bonds. 
 
 Loans. — A school-district may negotiate a loan when 
 authorized to do so by a majority vote of the voters at an 
 annual meeting. The amount of the loan shall not exceed, at 
 any time, three per cent, of the assessed value of the taxable 
 property of the district. 
 
 Funding Bonds. — The board of education of a school- 
 district, city or town, may issue renewal funding bonds, to be 
 exchanged for outstanding bonds, or sold to pay the bonded 
 debt as it shall become due. 
 
 Form of Bonds. — These bonds shall be in denomina¬ 
 tions not less than one hundred dollars, nor more than one 
 thousand dollars, bearing not exceeding eight percent, interest 
 per annum, payable semi annually, and shall have interest 
 
48 
 
 SUMMARY OF LAWS OF MISSOURI. 
 
 coupons attached. Such bonds shall be payable to bearer, in 
 the city of St. Louis, or city of New York, as may be agreed 
 upon, within twenty years after date, but redeemable at 
 pleasure of the board, after five years from date thereof. 
 
 How Executed. —Each bond shall be signed by the 
 president, and countersigned by the secretary or clerk of the 
 board, and authenticated by the seal of the board if there be 
 one, and be attested by the clerk of the county court in which 
 the district is located, and have the county seal attached. 
 
 Record of Bonds. —The secretary or clerk of the board 
 shall keep a record of all the bonds issued, in the hooks of the 
 district. 
 
 Exchange—Sale. — The bonds may be exchanged for 
 outstanding bonds, at not less than ninety cents on the dollar; 
 or may be sold, and the proceeds applied to the redemption of 
 other bonds. 
 
 Payment.—Same as bonds of county or city. 
 
SUMMARY OF THE LAWS OF NEBRASKA 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 State Agency. —The governor is authorized to designate 
 some bank in New York city as the agency for the state for 
 the payment of bonds and coupons, issued by any county, 
 township, precinct, city, or school-district, which are payable 
 in New York. 
 
 Bond. —Such agency shall give a bond in double the 
 amount of moneys which it may have in custody at any time; 
 to be approved by the governor and auditor, and filed with the 
 secretary of state. 
 
 Payment of Bonds. —It is provided by statute that suffi¬ 
 cient moneys out of the bond tax shall be remitted to the 
 agency in New York ten days before any bond or coupons 
 payable there are due, to redeem the same. 
 
 Canceled. —On the payment of such bonds the agency 
 shall cancel, and return them to the officer from whom the 
 funds to pay the same were received. 
 
 Municipal Subscriptions. —Municipal corporations can¬ 
 not become subscribers to the capital stock, or owners of such 
 stock in a railroad, or other private corporation. 
 
 Donations—Limit. — Cities, counties, towns, or other 
 subdivisions of the state, cannot make donations to railroads 
 or other works of internal improvement, unless authorized to 
 do so by a vote of the people. 
 
50 
 
 SUMMARY OF LAWS OF NEBRASKA. 
 
 Such donations when authorized shall not exceed ten per 
 cent, of the assessed valuation of such county, including the 
 donations of the subdivisions thereof. Any city or county 
 may, by a two-thirds vote, increase such indebtedness five per 
 cent. Bonds issued to secure such indebtedness are not valid 
 unless there be indorsed thereon a certificate that they were 
 issued pursuant to law, signed by the secretary and auditor of 
 state. 
 
 COUNTY BONDS. 
 
 May be Issued. —The county board of any county, for 
 the purpose of erecting a court house, jail, or other necessary 
 county buildings, may borrow money, or appropriate funds, 
 and issue bonds of the county in payment of the same, to an 
 amount not exceeding ten per cent, of the valuation of the 
 property of the county ; in such denominations, to run for such 
 periods, bearing such rate of interest, payable annually or 
 semi-annually, as the board of commissioners may determine. 
 
 Proposition Submitted. —Before any bonds shall be 
 issued by a county, the question of issuing them must first be 
 submitted to the people of the county, accompanied by a pro¬ 
 vision to levy a tax annually for the payment of the interest 
 and principal, when due. The sum desired to be raised, the 
 amount, and rate of tax, time of taking effect, and the time the 
 election will be held, shall be published for four consecutive 
 weeks in a newspaper published in the county. If there be no 
 such paper, one notice, at least, shall be posted in the most 
 public place in each precinct. 
 
 If two-thirds of the votes cast at such election favor the 
 proposition, then the bonds may be issued. 
 
 Registration by County. —The officers of any county 
 in this state issuing bonds, shall register them in a book for 
 that purpose, showing that all the requirements of the law 
 authorizing the issue have been faithfully observed; also the 
 
SUMMARY OF LAWS OF NEBRASKA. 
 
 51 
 
 date, amount, number, maturity, when and where payable, 
 and shall forward to the state auditor a certified statement of 
 such registry, attested by the county clerk under his seal. 
 
 Registration by Auditor. —When a holder of county 
 bonds shall present them to the state auditor for registration, 
 he shall register them in his office in the same manner that 
 they are registered by the county issuing them, if the auditor 
 is satisfied that they were issued according to law , and he shall 
 certify upon such bonds under his seal that they were legally 
 issued, and are lawfully registered in his office. 
 
 Auditor’s Certificate. —The auditor shall annually, on 
 or before the second Monday of June, certify to the county 
 clerk of any county, bonds of which are registered in his office ; 
 the amount of sinking fund, and interest due and falling due 
 before the next tax levy, on such bonds. 
 
 Payment of Interest. —Any county clerk receiving such 
 certified statement from the auditor, shall proceed with the 
 county recorder to create a sinking fund, by levying a per¬ 
 centage on the taxable property of the county sufficient to pay 
 the interest on the bonds thereof. 
 
 Redemption—Investment. —The money collected and 
 remaining in the treasurer’s hands after paying the interest 
 due, and falling due, in the current year, shall constitute a 
 sinking fund for the final redemption of such bonds. When 
 so directed, the treasurer shall invest the money as follows: 
 First, in redeeming the bonds of the counties issuing the same. 
 Second, in the state bonds of Nebraska. Third, in U. S. gov¬ 
 ernment bonds. 
 
 Payment—How Made. —Payment shall be made at finan¬ 
 cial agency, or at the place named in the bond or coupon. At 
 the request of the owner of the bond, payment may be made 
 at the office of the county treasurer. 
 
 Cancelation. —When any registered bonds are paid by 
 the treasurer, they shall he indorsed by him, “ Canceled,” 
 
52 
 
 SUMMARY OF LAWS OF NEBRASKA. 
 
 with date of payment, and filed with the county clerk, who 
 shall enter satisfaction of such bonds in the book where the 
 same are registered. 
 
 Funding Indebtedness. — The county board of any 
 county may issue coupon bonds, in such denominations as they 
 may determine, to pay the existing and unpaid indebtedness 
 of such county; but the amount of such bonds shall not ex¬ 
 ceed ten per cent, of the assessed valuation of the county. 
 The question of issuing the bonds must first be submitted to 
 the people. Sec. 132, page 191, Guy A. Brown’s annotated 
 statutes, 1880. 
 
 Form of Bonds. —Any bonds issued by virtue of this act, 
 shall be for the payment of the sum specified therein, by the 
 county issuing the same; shall be in such denominations as 
 the county board may fix; shall run not more than twenty, 
 nor less than five years; bearing not to exceed seven per cent, 
 per annum, payable semi-annually, at the county treasurer’s 
 office; and shall be signed by the chairman of the board, and 
 countersigned by the county clerk. 
 
 Sale of Bonds. —The bonds shall be negotiated at the 
 highest price, and shall not be sold for less than par value. 
 If by the issue of such bonds the rate of interest will be re¬ 
 duced, and the amount of indebtedness not increased, a 
 majority of the votes cast shall be sufficient to authorize the 
 issuing of such bonds. 
 
 Record of Bonds. —The county treasurer shall record 
 the bonds in his office, with full description of the same. 
 
 Payment. —The county board shall levy a tax annually 
 for the payment of the interest on such bonds as it falls due, 
 and an additional amount to pay the principal at maturity. 
 Not more than twenty per cent, of the principal shall be col¬ 
 lected in any one year. 
 
 Refunding. —Any county of this state may, for the pur¬ 
 pose of refunding its bonded indebtedness, issue coupon bonds 
 
SUMMARY OF LAWS OF NEBRASKA. 
 
 53 
 
 at a rate of interest not exceeding six per cent, per annum, 
 said bonds to be substituted in place of, and exchanged for, 
 bonds heretofore issued, and in amount equal to principal and 
 interest of the bonded indebtedness; running not more than 
 twenty years ; interest payable semi-annually. 
 
 Notify Bondholders. —Where bonds of a county are past 
 due, and in case of bonds redeemable at the option of the 
 county board at a fixed time, and the time has elapsed, the 
 board shall notify the holders of such bonds to present them 
 for redemption, or exchange, and in case of refusal of the bond¬ 
 holders so to do, the county shall not be liable for interest on 
 the same at a rate in excess of the rate provided as the interest 
 of such refunding bonds, and such rate shall commence with 
 the coupon next due after such notice. 
 
 Sale Refunding Bonds. —If such bonds cannot be ex¬ 
 changed, the commissioners may sell the refunding bonds at 
 not less than par, in sums sufficient to create a fund to redeem 
 the outstanding bonds.* 
 
 Yote to Refund not Necessary. —Counties are author 
 ized to refund their indebtedness, dollar for dollar, irrespective 
 of the fact that said indebtedness exceeds ten per cent, of the 
 present valuation of the property of the county, and the bonds 
 may be issued by the commissioners without submitting the 
 proposition to a vote. Approved Feb. 23, 1883. 
 
 INTERNAL IMPROVEMENT BONDS. 
 
 May be Issued. —Any county or city in Nebraska may 
 issue bonds in aid of any railroad, or other work of internal 
 improvement,f to an amount to be determined by the county 
 
 * The registration, certification as to interest and principal, same as under 
 counties, page 51. 
 
 + The building of a court house is not a work of internal improvement, Neb. 
 report, 10-280. 
 
 4 
 
54 
 
 SUMMARY OF LAWS OF NEBRASKA. 
 
 commissioners or city council, not exceeding ten per cent, of 
 the assessed valuation of the county or city, upon a two-thirds 
 vote of the people. See under counties, page 50. 
 
 * 
 
 Proposition for Tax. —Same as counties, page 50. 
 
 Payment of Interest. —By tax levied as in case of other 
 bonds. Only enough taxes shall be collected to pay the amount 
 annually falling due, until after the year 1880. Not more 
 than ten per cent, of the principal of such bonds shall be col¬ 
 lected in any one year, unless by the conditions of the bonds 
 they are to be paid in some other way. 
 
 Estoppel. — No county or city issuing bonds under this 
 act shall be permitted to plead a want of consideration, and 
 may he compelled by mandamus , or otherwise, to levy the tax 
 herein provided to pay the same. Page 324, sec. 6, Guy A. 
 Brown’s annotated statutes, 1881. 
 
 Payment of Principal. —Same as in case of other bonds 
 issued by counties. 
 
 Precincts May Issue. —All the privileges conferred upon 
 counties and cities by this act, are granted to precincts. Page 
 325, sec. 7, same as above. 
 
 Refunding. —Any county, precinct, or city that has voted 
 and issued bonds to aid any railroad, or other internal im¬ 
 provement, which bonds are unpaid, bearing ten per cent, 
 interest per annum, may issue bonds bearing not more than 
 eight per cent, interest per annum in place of such bonds, 
 which exchange shall be dollar for dollar. 
 
 Form. —The new bond shall recite the object of its issue, 
 the act under which issued, number, date, and amount of the 
 bond for which it is substituted, and shall not be delivered until 
 the surrender of the bond so designated. 
 
 Tote Unnecessary. —No vote is required to authorize 
 the new bonds. 
 
SUMMARY OF LAWS OF NEBRASKA. 
 
 SCHOOL BONDS. 
 
 School-Districts May Issue. —The district officers o 
 any school district, for the purpose of purchasing a site and 
 building a school house thereon, and furnishing the same, may 
 issue bonds to an amount not to exceed five per cent, of the 
 assessed valuation ; provided such issue shall be voted by a 
 two-thirds vote of the people at an election called for that pur¬ 
 pose, in accordance with law. 
 
 Amount of Bonds.— In districts having less than twenty- 
 five scholars and not less than twelve of school age, five hun¬ 
 dred dollars; districts having twenty-five or more, and less 
 than fifty, not exceeding one thousand dollars; districts having 
 fifty or more, and less than one hundred, not exceeding two 
 thousand dollars ; in districts having one hundred or more, and 
 less than three hundred, five thousand dollars and no more; 
 and in districts having three hundred children of school age, 
 an amount of bonds may be issued, as agreed upon, not to 
 exceed five per cent, of the assessed valuation. 
 
 How Executed. —Such bonds shall be severally signed, 
 by the director, moderator, and treasurer of the district board. 
 
 Registration.—Payment—Refunding—Cancelation. 
 
 Same as counties. See pages 50, 51 and 52. 
 
SUMMARY OF THE LAWS OF DAKOTA 
 TERRITORY GOVERNING 
 MUNICIPAL BONDS. 
 
 COUNTY BONDS. 
 
 How Issued. —The county board of commissioners of 
 any county in the territory of Dakota, before they can law¬ 
 fully contract any debt in the name of the county, must first 
 submit the question to the people of the county to be voted 
 upon, whether they will construct any court house, jail, or 
 other public building, for the use of the county, or aid in 
 building any bridge or road. If a majority of the votes cast 
 at such an election favor the proposition, then the work may 
 be undertaken. 
 
 Question Submitted. — The whole question, including 
 the sum desired to be raised, or the amount of tax necessary to 
 be levied, the rate of interest on the bonds proposed to be issued, 
 shall be published for at least four consecutive weeks in some 
 newspaper of general circulation in the county. If there be 
 no such paper, then notice must be posted in one of the most 
 public places in each election precinct in the county, and give 
 the time of the election, and the form of the question to be 
 voted upon 
 
 Proposition to Levy Tax. — When the question sub¬ 
 mitted involves the borrowing of money, a proposition to levy 
 a tax to pay the same must accompany the question, and be 
 voted upon at the same time; and the rate of tax shall be 
 such as to pay the debt thus contracted in ten years from the 
 date thereof. 
 
SUMMARY OF LAWS OF DAKOTA. 
 
 57 
 
 Bonds Authorized by Special Acts. —When the 
 question of issuing bonds for any public building shall have 
 been duly submitted, and shall have received a majority of 
 the votes cast, the board of commissioners of such county may 
 be authorized, by a special act of the legislative assembly of 
 the territory, to issue the bonds for such purpose. 
 
 Form of Bonds. —The special act authorizing such 
 bonds shall prescribe the form, the term of years they are to 
 run, the rate of interest they shall bear, the time, place, and 
 manner of the payment of interest and principal of the bonds, 
 how they shall be redeemed, and the amount for which they 
 shall be issued. 
 
 SCHOOL TOWNSHIP BONDS. 
 
 School Townships May Issue Bonds. —Every organ¬ 
 ized school township, for the purpose of building and furnishing 
 school-houses, may issue bonds in the name of the township, in 
 denominations of one hundred dollars, and five hundred 
 dollars; redeemable after eight years, and payable in fifteen 
 years; bearing not more than eight per cent.* interest per 
 annum, payable semi-annually, with coupons attached for 
 each interest payment. 
 
 Form of Bond. — Such bonds shall be signed by the 
 clerk of the school township and countersigned by the director, 
 and shall distinctly state at the close of the bond proper, that 
 it is issued for school purposes only , and shall have printed on 
 the margin: “Issued in accordance with the provisions of the 
 act of the Legislative Assembly of Dakota Territory, approved 
 
 .1883,” inserting date of approval of this act (March 
 
 9, 1883). 
 
 Sale of Bonds. — Such bonds shall be sold for money 
 only , which must be actually paid into the school-township 
 
 * Bonds issued previous to March 13,1885, drew seven per cent. Amended 
 by making the interest eight per cent., March 13,1885. 
 
58 
 
 SUMMARY OF LAWS OF DAKOTA. 
 
 treasury, and they shall not be exchanged for property of any 
 kind; and no contract shall be made in connection with them, 
 other than for their sale, which shall be for not less than 
 ninety cents* on the dollar of their par value, including ac¬ 
 crued interest, and this discount is to cover all cost of issuing, 
 delivering, selling, and receiving the money therefor. 
 
 Bond Tax. —The township school-board shall levy each 
 year, upon the taxable property of such township, a tax suffi¬ 
 cient to pay the semi-annual interest, and after seven years a 
 sufficient tax to provide a sinking fund for the payment of the 
 bonds as they shall become due. For three years after the 
 organization of the township for school purposes, if necessary 
 this tax may be in addition to the tax the board may levy for 
 school purposes; but after three years all school taxes shall not 
 exceed three per cent, upon the taxable property of the town¬ 
 ship in any one year, except for final judgments against the 
 township, for which not more than two per cent, additional 
 tax may be levied in one year. 
 
 Redemption of Bonds. — When any bonds become 
 redeemable the township treasurer may use any money in the 
 sinking fund, or other money which may be properly applied 
 not otherwise appropriated, for redeeming such bonds, the 
 order of their redemption to be determined by the treasurer, 
 by lot. 
 
 Notice of Redemption. — Such notice shall be given by 
 the financial agency at which the bonds are made payable, 
 which may be anywhere in the United States, f by one publi¬ 
 cation in a newspaper selected by such agency. When pay¬ 
 able in the township, and by the treasurer, notice may be given 
 in a newspaper of general circulation in the county. 
 
 Interest to Cease. — Interest on the bonds shall cease 
 two weeks from date of publication. 
 
 * Previous to March 13,1885, such bonds could not be sold for less than par 
 value. Amended as above March 13,1885. 
 
 t Amended March 13,1885, making agencies at New York or Boston. 
 
SUMMARY OF LAWS OF DAKOTA. 
 
 59 
 
 Cancelation. —When redeemed, the bonds shall be can¬ 
 celed by the treasurer and clerk. In absence of the clerk, by 
 the director, by certifying the same across their face, and 
 entering it in the clerk’s record-book of proceedings, describ¬ 
 ing the bonds severally. 
 
 How Yoted. —Before any such bonds can be issued, the 
 question of issuing them must be submitted to the legal voters 
 of the school township. Such election may be held at any 
 time upon notices thereof, signed by the clerk of the town¬ 
 ship, and posted for not less than twenty days before the 
 election, in six of the most public places in the township, 
 giving the date, object and place of election, precise amount 
 of bonds to be issued, and the number, and the location of 
 the school-houses to be built. 
 
 Register and Indorsement. —Before the bonds are 
 sold, the county clerk shall satisfy himself by a careful 
 examination of the election return on file in his office, that 
 the bonds have been laivfully voted, when he shall register 
 them in a book for that purpose, giving a full description of 
 the same, and indorse each bond as follows: 
 
 Certificate. —“ I hereby certify that the within bond for 
 
 .hundred dollars, of.school 
 
 towmship,..county, Dakota, is issued in accordance 
 
 with law, and by authority of a majority of the legal voters of 
 
 said township, voting at an election duly held., 
 
 188..., for that purpose, and is duly registered in this office.” 
 The blanks shall be properly filled, and the certificate officially 
 signed by the county clerk, and attested by the county seal. 
 
 Yalidity. —The validity of such bonds so registered and 
 indorsed , shall not be questioned in any court , but such bonds 
 are valid and binding .* 
 
 *If these bonds are properly certified as above, the purchaser need not 
 inquire as to the manner of their issue at all. 
 
60 
 
 SUMMARY OF LAWS OF DAKOTA. 
 
 Failure to Pay Bond. —If any coupon or bond shall not 
 be paid by the township, within six months after it is due, the 
 holder may present it to the county clerk, with the affidavit of 
 some person, of its non-payment, and the clerk shall record 
 the fact, and amount due, and if the school board do not levy 
 the proper tax, the county clerk shall levy upon the tax list 
 against all the property of the township a tax to meet said 
 payments, to be collected as other school taxes are, not to ex¬ 
 ceed two per cent, in one year, and may be in addition to all 
 other taxes. 
 
 The county treasurer shall apply the first money received 
 by him from this tax to pay the coupons, and then the bonds 
 so defaulted. Such tax shall be levied from year to year until 
 all bonds and coupons are paid. 
 
 01(1 Bonds Redeemed. —Any school township may issue 
 bonds in exchange at par for bonds issued by it before its 
 organization. Such exchange may be made by the school 
 board without submitting the question to a vote, if the county 
 attorney shall advise the board , in writing , that the bonds of 
 such district are valid. 
 
 Such redemption bonds must be registered, and certified 
 by the county clerk, that they are issued in accordance with 
 law . in redemption of lawful school-district bonds , and not 
 that they are issued by authority of the voters. 
 
 Amount Limited. —No school township shall issue bonds 
 for more than seven hundred dollars, for each single-room 
 school-house.* 
 
 Bonds to the amount of twenty-five hundred dollars may 
 be issued for building any two-room graded school-house which 
 the board is authorized to erect; and each school township for 
 regular graded school-houses may issue bonds for five thousand 
 dollars. 
 
 *Pi’evious to March 13,1885, the amount for which bonds could be issued for 
 single-room school-houses was fifteen hundred dollars. Amended March 13, 
 1885, making- the amount seven hundred dollars. 
 
SUMMARY OF LAWS OF DAKOTA. 
 
 61 
 
 Two Townships Joining. —Where two or more town¬ 
 ships join in building a graded school, each township may 
 issue bonds to the amount of three thousand dollars, and no 
 more. 
 
 Propositions to Build Submitted. —All propositions to 
 build school-houses must be submitted specifically to a vote of 
 the people, hut the propositions to build two or more ordinary 
 school-houses may be voted upon at the same election. 
 
 Graded Schools Toted on Separately.— The question 
 of issuing bonds for graded schools, and other schools, may be 
 submitted at the same time, but must be voted on separately, 
 and be so stated. 
 
 When School-District Included in Township. —When 
 any school-district which Jias been authorized to issue bonds, 
 by special act, shall afterwards be included within a school 
 township, such township may issue and sell the bonds to the 
 same amount. 
 
 Bonds a Lien. —The bonds of a school township are a lien 
 on the taxable property of the township, and when the pro¬ 
 visions of law fail, or delay the payment of the interest or 
 principal, by officers refusing to do their duty, the district 
 court for the county, on application of the holders of such 
 bonds or coupons in payment of which default has been made, 
 may cause taxes to be levied and collected sufficient to pay the 
 same. 
 
 TOWNSHIP DEBTS AND BONDS. 
 
 Limit of Debt. —No town shall contract debts or make 
 expenditures for any one year, in a larger sum than the amount 
 of taxes assessed for the year, without a majority vote of the 
 township ; nor assess for township purposes more than ten mills 
 on the dollar of taxable property for any one year. The amount 
 of indebtedness, including outstanding bonds, shall not exceed 
 five per cent, on the assessed value of the taxable property of 
 the town. 
 
62 
 
 SUMMARY OF LAWS OF DAKOTA. 
 
 Authority to Issue Bonds. —The board of supervisors 
 of any organized township may issue bonds of the towm, with 
 coupons attached, for such periods, and in such sums, payable 
 in such amounts, and at such times, not exceeding six years 
 from date thereof, as may be directed by a two-thirds vote of 
 the voters of any legally called town meeting for that purpose. 
 Such bonds to bear not more than eight per cent, interest per 
 annum, payable annually. 
 
 Form. —These bonds shall be signed by the chairman of 
 the board of supervisors, and countersigned by the clerk of the 
 town. Such bonds shall not be sold for less than their par 
 value. 
 
 Payment of Bonds. —The board of supervisors and their 
 successors shall, on or before the first day of September next 
 after the date of said bonds, and every year thereafter, at the 
 same time, until the bonds are fully paid, and the interest 
 thereon, levy and certify to the auditor or county clerk of the 
 county in which such town is situated, a tax upon the prop¬ 
 erty of said town sufficient to pay the principal and interest 
 falling due next after such levy, and such further sums as the 
 board may deem necessary, not exceeding twenty per cent, of 
 such bonds maturing, which taxes shall be payable in money, 
 and be applied to the payment of bonds and interest. 
 
 Powers of Incorporated City. —Each incorporated city 
 shall have, and exercise within its limits, the same powers as 
 are conferred upon towns as above. 
 
 Laws of Dakota, 1883, chapter 112, sec. 121, page 256. 
 
SUMMARY OF THE LAWS OF KANSAS 
 GOVERNING MUNICIPAL BONDS. 
 
 IN GENERAL. 
 
 State Agency. —The governor, secretary of state, and 
 state auditor, shall designate some bank in New York city, 
 as a state agency, where the payment of bonds issued by any 
 municipality in Kansas, and made payable in New York city, 
 shall be paid. 
 
 Treasurer to Remit. —The treasurer of a municipal 
 corporation which shall have issued any bonds, shall remit to 
 the agency, fifteen days before the maturity of bonds payable 
 there, sufficient moneys to redeem the bonds. 
 
 Liability for Neglect. —If the treasurer of any county, 
 city or township shall neglect or refuse to perform this duty, 
 he shall be liable to the holder of such bonds in double the 
 amount of the bonds dishonored by his refusal to comply with 
 this provision. 
 
 Bonds for Private Enterprises Yoid.-Municipal bonds 
 issued in aid of private enterprises are void. 9 Kan. 689. 
 
 Limit of Indebtedness. —Provision shall be made by 
 general law for the organization of cities, towns and villages; 
 and their power of taxation, assessment, of borrowing money, 
 contracting debts, and loaning their credit, shall be so re¬ 
 stricted as to prevent the abuse of such power. 
 
 Sec. 5, Art. 12, Const. 
 
64 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 BONDS OF COUNTIES, CITIES AND TOWNSHIPS. 
 
 Power to Issue. —The boards of county commissioners, 
 the mayor and city council, and the trustee, clerk, and treas¬ 
 urer of any township, may issue the bonds of their respective 
 municipalities, for the purpose of building, or purchasing 
 bridges, and to purchase land and erect buildings thereon for 
 the poor. Such bonds may be issued to an amount not exceed¬ 
 ing five per cent., inclusive of all other bonded indebtedness, 
 of the taxable property of the municipal corporation. 
 
 Form of Bonds. —The bonds shall be in denominations 
 of not less than one hundred dollars, payable at such place in 
 the city of New York as the officers issuing the same shall 
 determine, and shall run not less than five years, nor more 
 than thirty years, from date thereof, bearing not exceeding 
 ten per cent, interest per annum, payable semi-annually, 
 where the principal is made payable. The bonds shall have 
 interest coupons attached. 
 
 How Executed. —If such bonds are issued by a county, 
 they shall be signed by the president of the board of commis¬ 
 sioners, and attested by the county clerk; if issued by a city, 
 they shall be signed by the mayor and attested by the city 
 clerk; when issued by a township, the trustee shall sign them, 
 and they shall be attested by the township clerk. 
 
 Proposition to Issue. —No bonds can be issued unless 
 authorized by a vote of the qualified electors of the county, 
 city, or township. A petition signed by two-fifths of the 
 voters of the municipality, as shall be determined by reference 
 to the returns of the last preceding general election, shall be 
 presented to the constituted authorities, asking that a vote be 
 taken upon the question of building, or purchasing a bridge, 
 or for buying land and erecting buildings for the poor. With¬ 
 in ten days after receiving such a petition the proper officers, 
 viz: commissioners, mayor and council, etc., shall call an 
 
SUMMARY OF LAWS OF KANSAS. 
 
 65 
 
 election, to be held within forty days, and shall publish notice 
 of the same for at least three consecutive weeks in a news¬ 
 paper in the county. If there be no such paper, then they 
 shall post written or printed notices in at least five public 
 places in each voting-precinct, in the county, city, or town¬ 
 ship, for twenty days prior to the election. 
 
 Form of* Notice. —The notice shall give the time and 
 place of election, purpose for which bonds are to be issued, and 
 shall be signed by the sheriff. 
 
 A second election may be had only upon the petition of 
 three-fifths of the legal voters. 
 
 Place of Election. —The place of holding the election 
 shall be the usual place of holding elections in the county; 
 and the election shall be conducted, and the result declared, as 
 provided for in county elections in general. The vote shall 
 be by ballot: “For the bridge bonds”—“Against the bridge 
 bonds”—“For the poor farm bonds”—“Against the poor 
 farm bonds.” If three-fifths of the votes cast are for the 
 bonds, then they may be issued and sold at not less than ninety 
 cents on the dollar. 
 
 Registration. —The officers issuing such bonds shall 
 cause them to be registered in a book kept for that purpose, 
 showing the date of issue, number, amount, time of maturity, 
 rate of interest, where payable, purpose; and the officers 
 issuing the bonds shall make out and transmit to the auditor 
 of state, a certified statement of the number, amount and 
 nature of the bonds issued, to whom issued, when and where 
 payable, and the purpose, which statement must be attested by 
 the county clerk, and have attached the corporate seal of the 
 county. 
 
 Notice of Issue. —The commissioners, or municipal 
 authorities, shall publish for at least three weeks in some news¬ 
 paper of general circulation in the county, and post in six 
 public places, their intention to issue the bonds at a time stated 
 in the notice. 
 
6'6 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 Clerk’s Debt Statement. —The clerk of the county 
 issuing bonds under this act (March 18, 18T4), shall make out 
 and forward to the state auditor on or before, the first day of 
 January and July each year, a full statement of all the bonded 
 indebtedness of the county. 
 
 Registration by State Auditor. —Within thirty days 
 after the delivery of such bonds, the holders shall present them 
 to the state auditor for registration in his office, who, if he be 
 satisfied the bonds have been legally issued, and that the 
 signatures are genuine, shall register them, in the same manner 
 as bonds are registered by the officers issuing them, and shall 
 certify over his hand and seal that such bonds have been issued 
 in accordance to law, and that the signatures are genuine, and 
 that he has registered the bonds as provided. 
 
 Prior Bonds. —Holders of bonds issued prior to this act, 
 or that may be hereafter issued, may have such bonds regis¬ 
 tered in the state auditor’s office. When any bonds not issued 
 under this act shall be so registered, the auditor of state shall 
 within ten days thereafter notify the officers who issued the 
 same of their registration, which shall be entered by such 
 officers in a book in their office, and the bonds shall thereafter 
 be considered registered bonds. 
 
 Payment. —The commissioners, or municipal authorities, 
 shall levy an annual tax sufficient to pay the interest on such 
 bonds as the same accrues, and to create a sinking fund for the 
 final redemption and payment of the bonds. But no sinking 
 fund shall be levied until one-half the time for which the bonds 
 are to run has elapsed. 
 
 Unlawful Issue—Penalty. — Any officer unlawfully 
 issuing, or aiding in issuing, such bonds, before the same shall 
 have been authorized, shall be guilty of a felony; and upon 
 conviction shall be fined not less than five hundred dollars, 
 nor more than five thousand dollars; or be imprisoned in the 
 penitentiary not less than one year, nor more than twenty 
 years, or both. 
 
SUMMARY OF LAWS OF KANSAS. 
 
 Bonds May be Issued. —The board of county com¬ 
 missioners and municipal authorities of any city, may issue 
 bonds of the county or city, for any sum necessary, and 
 negotiate a loan thereon to erect buildings for public purposes. 
 Such bonds shall not draw more than ten per cent, interest 
 per annum. Before such bonds can be issued, the question 
 must be submitted to the voters of the county or town, and 
 receive a majority in favor of the issuing of bonds. The 
 question of erecting any particular building must be submitted 
 to the people, at a time and place fixed by the commissioners, 
 or the mayor and council. 
 
 Petition. —A petition signed by not less than fifty voters, 
 asking a vote on the question, shall be presented to the proper 
 officers. Such officers shall, within five days, give notice by 
 publication, in a newspaper of general circulation in the 
 county or city, when and where such election will be held. 
 If a majority vote “For the Bonds,” the bonds may be issued. 
 
 Form of* Bond. —The bonds shall bear not exceeding ten 
 per cent, interest per annum; be in denominations of not 
 less than one hundred dollars, payable in not less than five, 
 nor more than twenty years, with interest, payable annually 
 or semi-annually; said bond shall be made payable where the 
 authorities designate. 
 
 Registration. —The clerk of the county or city shall 
 register the bonds in a book for that purpose, showing their 
 date, number, amount, to whom payable, and the rate of 
 interest. 
 
 Payment. —Same as on page 66. 
 
 Funding Bonds. —Any county, city or township that 
 has issued bonds for building bridges, or for other internal 
 improvements, may, to fund or cancel such indebtedness, issue 
 new bonds to the amount necessary, in equal annual install¬ 
 ments, with interest payable annually; the amount of such 
 bonds shall not exceed fifty per cent, of the indebtedness to be 
 
68 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 satisfied thereby. Such bonds shall run not more than thirty 
 years. 
 
 How Yoted. —The proper authorities shall call an 
 election, to be held at the usual place of holding elections, 
 notice being given by them by publication in the usual 
 manner, for three successive weeks prior to said election, 
 stating time, place, indebtedness to be funded, amount 
 necessary to satisfy the same, maturity, rate of interest, not 
 exceeding ten per cent, per annum. It shall require a two- 
 thirds vote “For the Bonds,” to authorize their issue. The 
 bonds shall not be sold for less than ninety cents on the dollar. 
 
 Registered. —Such bonds shall be registered in the office 
 of the auditor of state; shall have interest coupons attached, 
 and be made payable at the state treasurer’s office. 
 
 Auditor’s Certificate. —The state auditor shall annually, 
 on or before August 15th, certify to the county clerk of the 
 county in which the bonds were issued, the amount of tax 
 necessary to pay the interest and principal falling due. 
 
 Payment, Interest and Principal. —The state treas¬ 
 urer, on receipt of such tax money, shall pay the interest and 
 principal due on the bonds, take up the coupons, and file the 
 same with the state auditor, who shall cancel them. 
 
 State Custodian. —The state is the custodian only of the 
 taxes collected, and is not liable on account of any such 
 bonds issued. 
 
 The original bonds shall be in the following form: 
 
 UNITED STATES OF AMERICA. 
 
 State of Kansas, County of. 
 
 No. $. 
 
 Know all men by these presents, that the. 
 
 of.. in the state of Kansas, for value received, 
 
 promises to pay., or order, the sum of $., lawful 
 
SUMMARY OF LAWS OF KANSAS. 
 
 69 
 
 money of the United States, in equal annual installments of 
 
 $.each, at the office of the treasurer of.., state of 
 
 Kansas, together with interest thereon at the rate of.per 
 
 centum per annum from date thereof. Said installments and 
 interest shall be paid upon presentation and surrender of the 
 annexed coupons as they may fall due. The first payment 
 
 shall be made on the 1st day of July, A. D., and 
 
 annually thereafter. This bond is issued under the provisions 
 of and in pursuance of an act ot the legislature of the state of 
 Kansas, entitled, “ An act to provide for funding the indebted¬ 
 ness of counties, cities and townships, and to levy a tax 
 
 thereon.” Approved.day of.., 1875, and in 
 
 conformity with the approval of the.of the., 
 
 in the state of Kansas. 
 
 Dated., 18. 
 
 In witness whereof, the.of.., by its., 
 
 has caused this bond to be issued, signed by the.of said 
 
 ., and attested by the.of said., with the 
 
 seal of said.....of.attached, this.day of., 
 
 18. 
 
 Attested:., Clerk. 
 
 Form of coupon: $. the treasurer of.., Kansas, 
 
 will pay the holder hereof, on the 1st day of July, A. D. 
 
 ., at his office, in said., the sum of.dollars, 
 
 being the.installment of principal and interest due on 
 
 funding bond No.issued., A. D, 18. 
 
 Attested:.Clerk. 
 
 Refunding.—Counties, cities, boards of education, town¬ 
 ships, and school-districts, may issue new bonds to refund their 
 maturing indebtedness, with semi-annual interest coupons 
 attached; which bonds shall be issued at not less than par, 
 to run not more than thirty years; bearing not exceeding six 
 per cent, interest per annum. The amount of bonds shall not 
 exceed the amount of outstanding indebtedness. 
 
 5 
 
70 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 How Executed.— The bonds shall be executed by the 
 chief executive officer of the municipality, attested by the clerk 
 thereof, under the corporation seal. The school-district bonds 
 shall be signed by the director, attested by the clerk, and be 
 countersigned by the treasurer of the district board. The 
 coupons shall be signed by the chairman of the county board, 
 president, mayor, director, trustee and the respective clerks. 
 
 Form. —The bonds shall be in denominations from one 
 hundred to one thousand dollars, payable at the place named 
 on the face thereof; and shall contain a recital that they are 
 issued under this act, March 10, 1879. 
 
 Record of Bonds.— The county clerk shall keep a record 
 of all the bonds issued. 
 
 Cancelation. —Bonds so refunded shall be marked, “ Paid 
 in Full,” across the face, and preserved in the county clerk’s 
 office, or destroyed by the commissioners, a record being pre¬ 
 served. 
 
 Debt not to be Increased. —No county, city, or other 
 municipality, shall increase its debt beyond the amount of 
 such refunding bonds, until the same are fully paid. Any 
 bond issued in addition to such bonds are null and void. 
 
 Payment. —The commissioners shall annually levy a tax 
 to pay the interest as it falls due, and to create a sinking fund 
 for the final payment of the bonds. 
 
 Failure to make Levy. —If such officers fail or refuse 
 to make the levy provided for, the county clerk shall make the 
 levy. The refusal of the officers whose duty it is to make such 
 levy, or the refusal of the county clerk to do so, makes them 
 liable on their official bonds to the holder of any bond or 
 coupon falling due, which liability may be enforced by a civil 
 action. Such officer so refusing is guilty of a misdemeanor, 
 and upon conviction may be fined to an amount equal to what 
 should have been levied, or imprisoned from three to twelve 
 months in the county jail. 
 
SUMMARY OF LAWS OF KANSAS. 
 
 71 
 
 County Treasurer—To Levy.— If the proper officers 
 fail to make the levy, the state auditor shall certify to the 
 county treasurer the amount of interest and principal accrued, 
 and the treasurer shall cause the levy to be made. If the 
 treasurer refuse to make the levy, he shall he liable on his 
 official bond, and personally liable, and shall upon conviction 
 be imprisoned not less than three, nor more than twelve, 
 months in the county jail. 
 
 Sinking Fund.— Every county, city, board of education, 
 school-district or township issuing bonds, shall create a sinking 
 fund by the levy of an annual tax sufficient to redeem their 
 bonds. The amount of sinking fund to be levied each year, 
 for redemption of any bonds issued for a period of twenty 
 years or less, shall be determined by dividing the amount of 
 principal of such bonds by the number of years the bonds are 
 to run. But if the bonds are issued for more than twenty 
 years, the sinking fund need not be created until the twentieth 
 year prior to their maturity, at which time, and each year 
 thereafter, one twentieth of the principal amount shall be 
 levied as such fund. 
 
 CITIES OF THE FIRST CLASS. 
 
 Refunding Bonds. —Every city of the second class 
 which has or shall become a city of the first class, under the 
 act of March 6, 1883, may refund its bonded indebtedness 
 upon any terms agreed upon between it and the owners of 
 such bonds; but no city shall refund its indebtedness at an 
 amount exceeding fifty cents on the dollar of interest and 
 principal refunded, with bond running less than thirty years, 
 or bearing more than four per cent., nor shall such bonds be 
 issued for an amount greater than the par value of the bonds 
 refunded, and accrued interest. 
 
 No bonds shall be issued for refunding the bonds of any 
 city refunded since 1875. 
 
 Approved March 6, 1883. 
 
•72 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 SCHOOL BONDS. 
 
 Amount Limited. —No school-district shall issue bonds 
 for any purpose to an amount exceeding six per cent, of the 
 taxable property of such district. 
 
 Census Taken. —Before any bonded indebtedness can be 
 created by a school-district, the directors must direct a census 
 to be taken, and a sworn certificate returned, showing that 
 at least fifteen persons between the ages of five and twenty-one 
 years are residing in the district. 
 
 Authority to Issue. —The board of directors of any 
 district may issue bonds of the district to provide for the 
 building of the necessary school-houses, and to extend the time 
 of payment of any outstanding indebtedness, in an amount not 
 to exceed the amount of original bonds to extend the time of 
 which the new bonds are issued. 
 
 Must he Authorized by Tote. —The question of issuing 
 such bonds must be submitted to the qualified electors of the 
 district, and receive a majority of the votes cast, before any 
 bonds can be lawfully issued. 
 
 Election—How Ordered. —A petition signed by at least 
 one-third of the voters of the district (and in no case shall the 
 bonds be issued unless the petition is signed by ten voters), 
 shall be presented to the district board, asking that a vote be 
 taken for the issuing of such bonds, whereupon the board shall 
 order an election. 
 
 Notice of Election. —The board shall post notices signed 
 by the clerk in five public places, for at least ten days prior to 
 such election, stating therein the object of the election, and the 
 manner of voting upon the question. The election shall be 
 held as general elections are, except that females of twenty-one 
 years of age may vote, subject to the objections applied to 
 males. 
 
SUMMARY OF LAWS OF KANSAS. 
 
 73 
 
 Form of Bonds. —The bonds shall be in denominations 
 from one hundred to five hundred dollars, bearing not more 
 than seven per cent, interest per annum, payable semi¬ 
 annually on the first day of January and July. The principal 
 shall be payable within fifteen years. The bonds shall show 
 on their face the purpose, date, amount, to whom payable, 
 time to run, rate of interest, and time of payment, and have 
 coupons attached, and so arranged that the last one shall fall 
 due at maturity of the bond. 
 
 Executed. —The bonds shall be signed by the director, 
 countersigned by the clerk, and, after registration by the 
 county clerk, shall be negotiable, and may be sold by the 
 district board at not less than ninety-five cents on the dollar. 
 
 Registration. —The board shall have the bonds registered 
 with the county clerk, who shall enter them in a book for that 
 purpose, giving number of district, number of bond, date, to 
 whom payable, when (where) payable, when due, when interest 
 due, amount. 
 
 Copies of Register. —The county clerk shall furnish one 
 copy of his register to the county treasurer, and one to the 
 state superintendent, together with a statement, showing 
 number of sections of land in the district, number of acres of 
 land assessed and subject to taxation in the district, the 
 assessed value of taxable lands, assessed value of all personal 
 property in the district; which statement shall be signed by 
 all the directors, and the county clerk shall certify under his 
 official seal that the statement is correct, and the signatures 
 genuine. 
 
 Levy to Pay Interest and Principal. —The board of 
 county commissioners of each county shall annually levy upon 
 all the property in each school-district having outstanding 
 bonds, a tax sufficient to pay the interest, and to provide for a 
 sinking fund for the final redemption of such bonds. 
 
 Bonds Invested. —The bonds of a district may be 
 
74 
 
 SUMMARY OF LAWS OF KANSAS. 
 
 invested in bonds of other school-districts maturing before the 
 bonds invested, or in Kansas state bonds, or in United States 
 bonds. 
 
 Unlawful Issue—Penalty. —If any school-district offi¬ 
 cers whose duty it is to issue bonds shall prepare, sign or aid 
 in preparing any bonds, at any time before the same shall have 
 been authorized, they shall be deemed guilty of a felony, and 
 upon conviction shall be fined not less than five hundred, nor 
 more than five thousand, dollars, or be imprisoned in the 
 penitentiary not less than one year, nor more than five years, 
 or both. 
 
 Cancelation. —The bonds shall be canceled, when paid, 
 by the county treasurer, who shall indorse the date of payment 
 thereon. 
 
 CITY SCHOOL BONDS. 
 
 How Issued. —The board of education in any city of the 
 first class may issue bonds and negotiate them at not less than 
 ninety cents on the dollar, to build a school-house, or purchase 
 a site therefor. 
 
 Form of Bonds. —The bonds shall bear date of issue, and 
 draw not exceeding ten per cent, per annum, payable semi¬ 
 annually, and shall be payable in not more than twenty years 
 after date, and shall be in denominations of not less than fifty 
 dollars. No bond shall be issued unless authorized by a two- 
 thirds vote of the board of education at a regular meeting. 
 
 Limit. —The aggregate amount of outstanding bonds shall 
 not exceed one hundred and sixty thousand dollars ($160,000). 
 
 Payment. —The board of education shall levy a tax each 
 year sufficient to pay the interest, and to create a sinking fund 
 for final payment of the bonds at maturity. No bond shall be 
 purchased by the board within five years after date of issue. 
 The clerk of the board shall register the bonds. 
 
SUMMARY OF LAWS OF KANSAS. 
 
 75 
 
 Repealed. —The board of education in any city shall not 
 hereafter issue bonds for any purpose. 
 
 Approved April 7, 1876. 
 
 Funding and Refunding of school bonds. See under 
 counties, cities, school-districts, and townships; page 64. 
 
SUMMARY OF THE LAWS OF MICHIGAN 
 GOVERNING MUNICIPAL BONDS. 
 
 COUNTY BONDS. 
 
 Authority to Issue. —The board of supervisors of any 
 county, for the purpose of erecting a court house, jail, or 
 other public buildings for the use of the county, and to con¬ 
 struct bridges and highways,* may borrow money, or raise 
 the same by tax,f and issue the bonds of the county in pay¬ 
 ment thereof. 
 
 Amount Limited. — The amount which the board of 
 supervisors may borrow or raise in any one year for such pur¬ 
 poses shall not exceed one thousand dollars, unless author¬ 
 ized by a majority vote of the qualified electors of such county, 
 at an election held for that purpose. 
 
 Form. — The bonds shall be in such form, bearing not 
 exceeding ten per cent, interest per annum, to run not more 
 than fifteen years, payable at such time and place as the 
 board of supervisors shall designate. 
 
 Payment. — The board of supervisors shall provide for 
 the payment of the interest on such bonds as it falls due, and 
 the principal at maturity, by an annual tax. 
 
 May Authorize Townships to Issue Bonds. — The 
 
 board of supervisors of any county may authorize any town¬ 
 ship or townships therein to borrow money, or raise the same 
 
 * By highways and roads are meant state and territorial roads. The super¬ 
 visors can have no occasion to raise money for other roads. 
 
 t Taxes and loans so raised must be raised under the implied condition 
 that they are to be applied to public uses. 34 Mich. 46. 
 
SUMMARY OF LAWS OF MICHIGAN. 
 
 77 
 
 by tax upon the township, to build or repair any roads or 
 bridges in the township, and issue the bonds of the township 
 therefor. A two-thirds vote of the board is required to 
 authorize the township to do so. No greater sum than one 
 thousand dollars shall be borrowed, or raised by taxation in 
 any one year, for such purpose. 
 
 Question Submitted. — When it shall be necessary to 
 raise by loan or tax, a sum greater than one thousand dollars, 
 the board of supervisors shall determine the amount required, 
 and give notice that such question will be voted on at the 
 annual meeting, by publishing the same in one newspaper in 
 the county, and posting copies of such notice in at least three 
 public places in each township, and in each ward of any city 
 in the county, for thirty days previous to such election. If 
 there be no newspaper in the county, then publication must 
 be made in the nearest paper for three weeks prior to the 
 time of submitting the question to be voted upon. The notice 
 shall give the time and place of election. 
 
 Manner of Toting. — The vote shall be by ballot: “For 
 the Loan,” “Against the Loan,” “For the Tax,” “Against 
 the Tax.” A majority vote only is required. 
 
 TOWNSHIP BONDS. 
 
 Power to Issue. — The qualified electors of any town¬ 
 ship at a legally called meeting, may by a majority vote grant 
 any sum of money not exceeding one per cent, in any one 
 year, upon the assessed valuation of the taxable property of 
 the township, to provide for the erection of a town hall, or 
 other public building necessary for the use of the township, 
 and issue bonds in payment therefor. 
 
 Notice of Tote. — No vote shall be taken upon the ques¬ 
 tion of issuing such bonds unless a notice that such question 
 will be submitted to be voted upon at the meeting shall have 
 been signed by at least twelve freeholders of the town, and 
 
78 
 
 SUMMARY OF LAWS OF MICHIGAN. 
 
 copies thereof posted in five of the most public places in the 
 township, for ten days prior to the meeting. Such notice 
 shall specify the amount proposed to be raised. No money 
 shall be raised by tax, until authorized by a majority vote of 
 the qualified electors voting at such meeting. 
 
 Interest Computed Upon Installments. — When any 
 installment of interest upon any note, bond, or other written 
 contract is due and unpaid, interest may be computed and 
 collected on such installment from the time it became due at 
 the same rate as named in the bond or note, not exceeding 
 ten per cent, per annum, or if no rate is specified then the 
 rate shall be seven per cent, per annum. 
 
 CITY BONDS. 
 
 Authority to Issue. — The common couucil of any city 
 may purchase or erect the necessary buildings for the use of 
 the city, and may acquire such real estate as shall be necessary 
 for public grounds, parks, markets, and may provide for the 
 erection of a city hall, offices, prisons, hospitals, and for the 
 construction of water-works, and building of bridges, and 
 issue the bonds of the city to meet the cost of such improve¬ 
 ments. 
 
 Form of Bonds. — The form, denomination, time to run, 
 rate of interest and manner of payment of such bonds shall 
 be determined by the council. 
 
 Limit of Taxation. — The amount which the common 
 council of any city may raise by general taxation upon the 
 real and personal property of the city to meet the general 
 expense and liabilities thereof, shall not (school taxes ex¬ 
 cluded) exceed in any one year: in cities of not more than six 
 thousand population, one and one-fourth per cent.; in cities of 
 over six thousand and not more than nine thousand, one and 
 one-half per cent.; in cities of more than nine thousand and 
 not exceeding fourteen thousand, one and three-fourths per 
 
SUMMAEY OF LAWS OF MICHIGAN. 
 
 79 
 
 cent.; and in cities of more than fourteen thousand inhab¬ 
 itants, two per cent, on the assessed valuation of real and 
 personal property in such city. 
 
 Payment of. — The council may raise the further sum of 
 not exceeding three mills on the dollar of the assessed valua¬ 
 tion of the city, to provide a sinking fund to pay the funded 
 debt of the city and the interest thereon. 
 
 Tax to Pay. — No public work or improvement shall be 
 commenced, until a tax or assessment to pay the cost thereof 
 shall have been levied, or shall have been directed to be 
 levied. 
 
 Loans. — If for the purpose of erecting public buildings, 
 or purchasing grounds therefor, or for making other improve¬ 
 ments on public works, a greater sum is required than can be 
 raised by the council as provided above, such amount may be 
 raised by tax or loan, if authorized by a majority vote of the 
 people at an annual city election. The amount so raised 
 shall not exceed in any year two per cent, of the assessed 
 valuation of the property of the city. 
 
 Proposition to be Submitted. —The council, by an 
 ordinance or resolution stating the amount to be raised, the 
 purpose, and whether by tax or loan, may submit the question 
 of negotiating a loan, and issuing bonds, to a vote of the 
 people. 
 
 Notice of Submission of Question. — The council 
 shall give notice that such a proposition will be submitted to 
 be voted upon, by publishing the ordinance or resolution 
 which shall be passed to that effect, in one of the newspapers 
 of the city, and by posting copies thereof in five of the most 
 public places in each ward of the city, for two weeks at least 
 previous to such election. The vote shall be by ballot. 
 
 Bonds May be Issued. —For any loans lawfully made, 
 the common council of the city making such loans may issue 
 bonds bearing a legal rate of interest. 
 
80 
 
 SUMMARY OF LAWS OF MICHIGAN. 
 
 Record of Bonds. — The city clerk or comptroller shall 
 keep a record of all the bonds issued as to their date, number 
 and amount. 
 
 New Bonds to Extend Time of Payment of Original 
 Bonds. — New bonds may, when necessary, be issued by the 
 council, to extend the time of payment of the original bonds, 
 so as to change, but not increase , the indebtedness. Each 
 bond must show upon its face to what class of indebtedness it 
 belongs, and out of what fund it is payable. 
 
 VILLAGE BONDS. 
 
 See cities and towns, page 78. The same provisions 
 govern the issue of village bonds as govern the issue of the 
 bonds of cities and towns. 
 
 WATER BONDS. 
 
 Cities and Villages. 
 
 May Borrow Money and Issue. — Any city or incor¬ 
 porated village in this state may, for the purpose of purchas¬ 
 ing grounds, rights, privileges, and materials necessary to 
 erect water-works, and to make improvements in connection 
 therewith, borrow money to meet the cost thereof, and issue 
 bonds of the city or village in payment therefor. 
 
 Amount Borrowed Limited. — The total sum borrowed 
 or raised by tax the first year for such purpose shall not ex¬ 
 ceed ten per cent, of the assessed valuation of such munici¬ 
 pality; and no more than five per cent, shall be borrowed in 
 any year thereafter. The rate of interest on any such in¬ 
 debtedness shall not exceed ten per cent, per annum. 
 
 Payment of Principal and Interest. — The council, 
 or corporate authorities of a village, shall provide for the 
 
SUMMARY OF LAWS OF MICHIGAN. 
 
 81 
 
 payment of the principal and interest of any bonds raised by 
 them, and fix the time, place and manner of such payment. 
 
 Question Must be Submitted. — The question of bor¬ 
 rowing money, and issuing bonds, must be submitted to the 
 electors of the city and village, and receive a majority vote 
 in favor of such loan, before such bonds can be lawfully 
 issued. The vote may be taken at a general or special elec¬ 
 tion. 
 
 City or Tillage May Purchase Water-works or 
 Shares Therein. —Any city, town or village may become a 
 stockholder in any water-works which it has issued bonds to 
 construct, or acquire by purchase the entire rights of such 
 water company, when the council or corporate authorities 
 shall so direct, by a resolution entered on its minutes; and 
 shall promise, and undertake, in consideration of such pur¬ 
 chase, to pay when due the interest and principal of such 
 outstanding bonds, which new promise is deemed to be made 
 to each and every person or corporation which is, or may be¬ 
 come, the holder of such bonds. Any city, town or village 
 may issue bonds payable at such time as the council may de¬ 
 termine, bearing not more than eight per cent, interest per 
 annum, and sell the same upon the best terms. 
 
 Tax to Pay Principal and Interest. —Cities, towns 
 and villages may, in addition to the power given in their 
 charters, levy taxes not exceeding two per cent, of the valua¬ 
 tion of the property therein to meet the interest on such 
 bonds as it falls due, and the principal at maturity. 
 
 Company Organized. — Such water company shall be 
 deemed organized when half the capital stock is subscribed, 
 and ten per cent, thereof paid in; and may begin construc¬ 
 tion, and borrow money and issue bonds therefor. 
 
82 
 
 SUMMARY OF LAWS OF MICHIGAN. 
 
 SCHOOL BONDS. 
 
 Districts May Issue. — Any school-district, for the pur¬ 
 pose of purchasing sites and erecting school-houses thereon 
 and furnishing the same, may, upon a two-thirds vote of the 
 electors of such district, borrow money and issue bonds. 
 
 Amount of Debt Limited. — Districts having less than 
 thirty school children between the ages of five and twenty 
 years, shall not-contract debt to exceed three hundred dollars; 
 districts having thirty school children may contract debt not 
 to exceed five hundred dollars; districts having fifty children of 
 school age, one thousand dollars; districts having one hundred 
 children, three thousand dollars; districts of two hundred 
 children, eight thousand dollars; districts of three hundred 
 children, fifteen thousand dollars; districts of four hundred 
 children, twenty thousand dollars; districts of five hundred 
 children, twenty-five thousand dollars; districts of eight 
 hundred children or more, thirty thousand dollars. Such 
 indebtedness shall not extend beyond ten years for money 
 borrowed. 
 
 Election to Tote Upon the Issue of Bonds. — In all 
 
 elections to vote upon the issuing of such bonds, the director, 
 assessor, and one person appointed by the district board, shall 
 constitute a board of inspection, which shall keep a poll list, 
 and provide a ballot-box, which shall be kept open two hours, 
 and balloting shall be conducted as at township elections. 
 
 Form of Bonds. —The bonds authorized to be issued by 
 any school-district shall be prepared by the district board in 
 such form, and in such denominations not less than fifty dol¬ 
 lars each, as the board may determine, bearing not more than 
 eight per cent, interest per annum, payable at such time and 
 place as the district shall direct. 
 
 How Executed. — Such bonds shall be executed by the 
 moderator and director of the district. 
 
SUMMARY OF LAWS OF MICHIGAN. 
 
 88 
 
 Payment of Bonds. — The electors of such district may, 
 at any regular meeting, impose a tax to pay the principal and 
 interest of such bonds, as the same shall become due. 
 
 May Borrow Money to Pay Bonded Indebtedness.— 
 
 Any school-district may borrow money to pay any bonded in¬ 
 debtedness, and issue further bonds if authorized to do so by 
 a majority vote at an annual or special meeting, notice having 
 been previously given in the call for such meeting that such 
 vote would be taken. 
 
 CITY SCHOOL BONDS. 
 
 Authority to Issue. — To purchase grounds and erect 
 buildings for school purposes, the board of education of any 
 city may, in addition to all other sums authorized to be raised, 
 borrow any sum not exceeding in any year one per cent.* of 
 the valuation of the taxable property in such district, and 
 issue the bonds of the district therefor, f 
 
 New Bonds to Extend Former Loans. —Any school- 
 district may issue new bonds to renew former loans made 
 by it. 
 
 * To Raise Greater Sum.— When it shall become necessary to raise a 
 greater sum than can be raised as above, not exceeding one per cent, of the 
 valuation of taxable property of the preceding year, such sum may be raised 
 by tax or loan, if authorized by a majority vote of the people of the district, 
 at a special meeting called by the board of education, for the purpose of voting 
 thereon; notice of the time, place and object of such meeting having been 
 given by publication in one of the newspapers of the city, and by posting 
 copies of the notice in ten public places in the city for ten days prior to the 
 election. 
 
 + To pay current expenses, the board of education may borrow money in 
 anticipation of the collection of taxes levied for school purposes during the 
 same year, not exceeding in amount the tax to be paid therefrom. 
 
INDEX OF STATES. 
 
 Dakota. 56, 62 
 
 Illinois. 16, 25 
 
 Indiana. 5, 10 
 
 Iowa . 34, 41 
 
 Kansas. 63, 75 
 
 Michigan. 76, 83 
 
 Minnesota. 30, 33 
 
 Missouri. 42, 48 
 
 Nebraska. 49, 55 
 
 Ohio. 11, 15 
 
 Wisconsin. 26, 29 
 
GENERAL INDEX 
 
 DAKOTA. 
 
 PAGE. 
 
 County Bonds—. 56 
 
 Authorized by Special Acts 57 
 
 Form of.57 
 
 How Issued. 56 
 
 Proposition to Levy Tax.. 56 
 
 Question Submitted. 56 
 
 School Township Bonds .. 57 
 
 Amount Limited. 60 
 
 Bonds a Lien. 61 
 
 Bond Tax. 58 
 
 Cancelation. 59 
 
 Certificate County Clerk.. 59 
 
 Failure to Pay. 60 
 
 Form of . 57 
 
 Graded School Voted Sep¬ 
 arately. 61 
 
 How Voted. 59 
 
 Interest to Cease. 58 
 
 Notice of Redemption.... 58 
 
 PAGE. 
 
 Old Bonds Redeemed.... 60 
 Proposition to Build Sub¬ 
 mitted . 61 
 
 Redemption of Bonds ... 58 
 Register and Indorsement 59 
 
 Sale of. 57 
 
 School Townships May 
 
 Issue. 57 
 
 Two Townships Joining.. 61 
 
 Validity. 59 
 
 When School-district in¬ 
 cluded in Township.... 61 
 Township Debts and Bonds 61 
 
 Authority to Issue. 62 
 
 Form of. 62 
 
 Limit of Debt. 62 
 
 Payment of. 62 
 
 Powers of Incorporated 
 City. 62 
 
 ILLINOIS. 
 
 City Bonds. 22 
 
 Funding. 23 
 
 Limit.23 
 
 Payment. 23 
 
 Power to Borrow Money 
 
 and Issue. 22 
 
 Record of. 23 
 
 Constitutional Limit. 16 
 
 County Bonds . 16 
 
 Authority to Issue. 16 
 
 Form of. 17 
 
 Payment . 17 
 
 Funding Bonds of Coun¬ 
 ties, Cities, Etc . 17 
 
 Auditor to Certify Rate... 20 
 
 Auditor to Fix Rate. 22 
 
 Cancelation. 19 
 
 Certificate of Legality.... 20 
 
11 . 
 
 GENERAL INDEX. 
 
 Illinois—Continued. 
 
 page. 
 
 Execution of Bonds. 21 
 
 How Invested.22 
 
 How Voted Upon. 19 
 
 Limit of Issue. 18 
 
 Majority Vote Required.. 18 
 
 Manner of Payment. 18 
 
 Matured Bonds not Paid. 21 
 New Bonds May be Issued 17 
 
 Payment Entered. 21 
 
 Registration. 19 
 
 Sale of. 18 
 
 State the Custodian. 20 
 
 Sinking Fund. 21 
 
 Uniform Design. 18 
 
 Valuation of Property In¬ 
 dorsed on. 18 
 
 PAGE. 
 
 Improvement District 
 
 Bonds. 23 
 
 Authority to Issue. 23 
 
 Indorsement.24 
 
 Payment.. 24 
 
 Rights of the Holder. 24 
 
 In General. 16 
 
 Municipal Subscriptions. 16 
 
 School Bonds.24 
 
 Cancelation. 25 
 
 Directors May Issue. 24 
 
 Funding. 25 
 
 Limit.25 
 
 Limit of Tax Levied. 25 
 
 Registered. 25 
 
 INDIANA. 
 
 City Bonds. 7 
 
 Cities may Borrow Money 
 
 and Issue. 7 
 
 Excess—Penalty. 8 
 
 Form of. 8 
 
 Form of Funding Bonds.. 9 
 
 Funding—Large Cities ... 8 
 
 Funding—Small Cities... 9 
 
 Ordinance for Loan. 8 
 
 Payment of. 9 
 
 Purpose of Loan. 8 
 
 Constitutional Limit. 5 
 
 County Bonds. 5 
 
 Authority to Issue. 5 
 
 Certificate of County Audi¬ 
 tor. 6 
 
 Form of. 6 
 
 Funding Debts. 6 
 
 Limit of Issue. 7 
 
 Payment of Interest. 6 
 
 Road Bonds. 7 
 
 Sale of. 5 
 
 Tax to Pay. 6 
 
 Temporary Loans. 7 
 
 Unsold Bonds. 5 
 
 School Bonds. 9 
 
 Authority to Issue. 9 
 
 Form of. 9 
 
 Payment of. 10 
 
 Statement of Cost—Ordi¬ 
 nance . 9 
 
 School Township Bonds.. 10 
 School Townships may 
 
 Unite. 10 
 
 Township Debts. 10 
 
GENERAL INDEX. 
 
 Ill, 
 
 IOWA. 
 
 PAGE. 
 
 Cities and Towns—Bonds 
 
 of. 38 
 
 Amount—See Loans. 38 
 
 Funding-Amount Limited 39 
 
 Loans. 38 
 
 May Levy Tax to Pay. 39 
 
 Payment. 39 
 
 Payment of Interest. _39 
 
 Power to Issue. 38 
 
 Redeeming. 37 
 
 Refunding. 37 
 
 Constitutional Limit.34 
 
 County Bonds. ... 35 
 
 Authority to Issue. 35 
 
 Cancelation.36 
 
 Disposition of. 36 
 
 Form.. 35 
 
 Funding. 36 
 
 How Voted Upon. 35 
 
 Insufficient Levy. 37 
 
 Levy to Pay Bonds. 36 
 
 Notice of Purchase. 36 
 
 Bonds for Private Enter¬ 
 prises . 63 
 
 Cities of the First Class, 
 
 Bonds of . 71 
 
 Refunding. 71 
 
 City School Bonds . 74 
 
 Funding. 75 
 
 Form. 74 
 
 How Issued. 74 
 
 Limit. 74 
 
 Payment. . 74 
 
 Repealed. 75 
 
 Refunding.75 
 
 Counties,Cities and Town¬ 
 ships—Bonds of . 64 
 
 Blank Form of . 68 
 
 Bonds May be Issued to 
 Erect Public Buildings.. 67 
 
 page. 
 
 Payment of. 35 
 
 Record of. 36 
 
 Redemption. . 37 
 
 Refunding . 37 
 
 Sale of. 38 
 
 Payment Interest. 38 
 
 Redemption. 38 
 
 Insufficient Levy. 38 
 
 School Bonds. 39 
 
 Disposition. 40 
 
 Funding—Form. 40, 41 
 
 Payment. 41 
 
 When Interest Ceases.... 41 
 
 How Executed. 40 
 
 How Voted. 40 
 
 Payment. 40 
 
 School-districts May Issue 39 
 
 In General. 
 
 Supervisors Liable. 36 
 
 As Capital Stock. 34 
 
 Decisions. 34 
 
 Purchase by Officers. 34 
 
 Clerk’s Debt Statement.... 66 
 Form of Bonds to Erect 
 
 Public Buildings. 67 
 
 Form of Bonds to Build 
 Bridges and Poorhouses 64 
 Form of Notice of Election 65 
 
 Funding Bonds. 64 
 
 Auditor’s Certificate_ 68 
 
 How Voted... 68 
 
 Payment, Interest and 
 
 Principal. 68 
 
 Registered.68 
 
 State Custodian. 68 
 
 How Executed. 64 
 
 Notice of Issue. 65 
 
 Payment. 66 
 
 Petition to Issue Bonds 
 for Public Buildings ... 67 
 
IV. 
 
 GENERAL INDEX, 
 
 Kansas—Continued. 
 
 page. 
 
 Place of Election. 65 
 
 Power to Issue Bonds to 
 
 Build Bridges, Etc. 64 
 
 Prior Bonds. 66 
 
 Proposition to Issue Bonds 
 to Build Bridges, Etc... 64 
 
 Refunding. 69 
 
 Debt Not to be In¬ 
 creased. 70 
 
 Cancelation. 70 
 
 County Treasurer to 
 
 Levy. 71 
 
 Failure to Make Levy... 70 
 Form Refunding Bonds. 70 
 
 How Executed. 70 
 
 Payment. 70 
 
 Record of Bonds. 70 
 
 Registration by Local 
 
 Officers. 65 
 
 Registration by State 
 
 Auditor. 66 
 
 Sinking Fund. 71 
 
 PAGE. 
 
 Unlawful Issue—Penalty 66 
 
 Liability for Neglect. ... 63 
 Limit of Indebtedness .... 63 
 
 State Agency. 63 
 
 School Bonds. 72 
 
 Amount Limited.72 
 
 Authority to Issue. 72 
 
 Bonds Invested. ... 73 
 
 Cancelation. 74 
 
 Census Taken. 72 
 
 Copies of Register.. . 73 
 
 Election—How Ordered.. 72 
 
 Executed. 73 
 
 Form of Bonds. 73 
 
 Levy to Pay Interest and 
 
 Principal. 73 
 
 Must be Authorized by 
 
 Vote. 72 
 
 Notice of Election. 72 
 
 Registration. 73 
 
 Unlawful Issue—Penalty.. 74 
 Treasurer to Remit. 63 
 
 MICHIGAN. 
 
 City Bonds. 78 
 
 Authority to Issue. 78 
 
 Bonds May be Issued.... 79 
 
 Form of Bonds. 78 
 
 Limit of Taxation. 78 
 
 Loans. 79 
 
 New Bonds to Extend Time 
 of Payment of Original 
 
 Bonds . 80 
 
 Notice of Submission of 
 
 Question. 79 
 
 Payment of.79 
 
 Proposition to be Sub¬ 
 mitted. 79 
 
 Record of Bonds. 80 
 
 Tax to Pay. 79 
 
 City School Bonds. 83 
 
 Authority to Issue. 83 
 
 New Bonds to Extend 
 
 Former Loans.. 83 
 
 County Bonds. 76 
 
 Amount Limited. 76 
 
 Authority to Issue. 76 
 
 Form. 76 
 
 Manner of Voting. 77 
 
 May Authorize Townships 
 
 to Issue Bonds. 76 
 
 Payment. 76 
 
 Question Submitted. 77 
 
 School Bonds . 82 
 
 Amount of Debt Limited. 82 
 
 Districts May Issue. 82 
 
 Election to Vote Upon the 
 
 Issue of Bonds. 82 
 
 Form of Bonds. 82 
 
 How Executed. 82 
 
GENERAL INDEX 
 
 Y. 
 
 Michigan—Continued . 
 
 PAGE. 
 
 May Borrow Money to Pay 
 Bonded Indebtedness.. 83 
 
 Payment of Bonds. 83 
 
 Township Bonds. 77 
 
 Interest Computed Upon 
 
 Installments. 78 
 
 Notice of Vote. 77 
 
 Power to Issue. 77 
 
 Village Bonds. 80 
 
 Water Bonds. 80 
 
 Cities and Villages. 80 
 
 Amount Borrowed Limited 80 
 
 PAGE. 
 
 City or Village May Pur¬ 
 chase Waterworks, Etc.. 81 
 
 Company Organized.81 
 
 May Borrow Money and 
 
 Issue. 80 
 
 Payment of Principal and 
 
 Interest. 80 
 
 Question May be Submit¬ 
 ted. 81 
 
 Tax to Pay Principal and 
 Interest. .... 81 
 
 MINNESOTA. 
 
 City Bonds . 30 
 
 Limit of Debt. 31 
 
 Power to Issue. 30 
 
 Cities,Towns and Villages 
 
 —Bonds. 32 
 
 Form. 32 
 
 How Executed. 32 
 
 How Voted. ... 32 
 
 May Issue. 32 
 
 County Bonds. 30 
 
 Authorized by Special Acts 30 
 Form of. 30 
 
 Question Submitted.30 
 
 School Bonds . 32 
 
 Payment of . 33 
 
 Power to Issue . 32 
 
 Sale of . 33 
 
 Town Bonds . 31 
 
 Authority to Issue .. 31 
 
 How Executed . 31 
 
 Notice of Meeting . 31 
 
 Payment of . 32 
 
 Sale of . 31 
 
 MISSOURI. 
 
 City Bonds. 45 
 
 Cities of the First Class 
 
 May Issue. 45 
 
 Cities of the Second Class 45 
 
 Amount. .. 46 
 
 Bonds of. 45 
 
 Certificate of Circuit Judge 45 
 
 Numbered.46 
 
 Proposition Submitted... 46 
 
 Redemption. 46 
 
 Registration. 46 
 
 Sale of. 46 
 
 Cities of the Third Class 46 
 
 Authority to Issue. 46 
 
 Cancelation. 47 
 
 Funding. 46 
 
 Redemption. 47 
 
 Sale of. 47 
 
 Constitutional Limit. ... 42 
 
 County Bonds. 42 
 
 Auditor’s Statement. 43 
 
 Bond Statement. 43 
 
 Bonds Registered.43 
 
 Form of. 42 
 
VI. 
 
 GENERAL INDEX. 
 
 Missouri—Continued. 
 
 PAGE. 
 
 Funding. 43 
 
 Payment. :. 44 
 
 Proposition to Fund. 44 
 
 How Issued. 42 
 
 Payment. 43 
 
 Treasurer’s Liability.43 
 
 School Bonds. 47 
 
 Form—See Power to Issue 47 
 
 Funding. 47 
 
 Exchange. 48 
 
 PAGE. 
 
 Form of. 48 
 
 How Executed. 48 
 
 Payment. 48 
 
 Record of. 48 
 
 Sale of. 48 
 
 How Executed. 48 
 
 Loans. 47 
 
 Payment. 47 
 
 Power to Issue. 47 
 
 NEBRASKA. 
 
 City Bonds — See Internal 
 Improvement Bonds.... 53 
 
 County Bonds. 50 
 
 Auditor’s Certificate. 51 
 
 Cancelation. 51 
 
 Form of—See May be Is¬ 
 sued . 50 
 
 Funding Indebtedness.... 52 
 Form of Funding Bond... 52 
 Payment of Funding Bond 52 
 Record of Funding Bond.. 52 
 Sale of Funding Bond.... 52 
 
 Investment. 51 
 
 May be Issued. 50 
 
 Notify Bondholders.53 
 
 Payment—How Made. 51 
 
 Payment of Interest. 51 
 
 Proposition Submitted... 50 
 
 Redemption. 51 
 
 Refunding. 52 
 
 Sale Refunding Bonds.. 53 
 Vote to Refund Not Nec¬ 
 essary . 53 
 
 Registration by Auditor.. 51 
 Registration by County.. 50 
 
 Donations. 49 
 
 Internal Improvement 
 
 Bonds. 53 
 
 Estoppel. 54 
 
 May be Issued. 53 
 
 Payment of Interest. 54 
 
 Payment of Principal.... 54 
 
 Precincts May Issue. 54 
 
 Proposition for Tax. 54 
 
 Refunding... 54 
 
 Form.54 
 
 Vote Unnecessary. 54 
 
 Municipal Subscriptions. 49 
 
 School Bonds. 55 
 
 Amount of.:. 55 
 
 Cancelation. 55 
 
 How Executed. 55 
 
 Payment. 55 
 
 Refunding —. 55 
 
 Registration.55 
 
 School-district May Issue 55 
 
 State Agency. 49 
 
 Bond. 49 
 
 Canceled. 49 
 
 Payment. 49 
 
GENERAL INDEX. 
 
 Vll. 
 
 OHIO. 
 
 PAGE. 
 
 City Bonds . 13 
 
 Bonds for Special Assess¬ 
 ment. 14 
 
 Extension Bonds. 14 
 
 How Voted. 13 
 
 Limit of Indebtedness ... 13 
 
 Limit of Loan . 13 
 
 Loans. 13 
 
 May Issue. 13 
 
 Payment. 13, 14 
 
 Sale of. 14 
 
 County Bonds .11 
 
 Authority to Issue. 11 
 
 Execution. 1] 
 
 PAGE. 
 
 Failure to Levy. 12 
 
 Form.. 11 
 
 Notice of Purchase . 12 
 
 Payment, Interest and 
 
 Principal. 12 
 
 Redemption. 12 
 
 Validity. 12 
 
 In General. 11 
 
 School Bond . 14 
 
 Form . 15 
 
 May Anticipate Levy. 15 
 
 Power to Issue. 14 
 
 City School Bonds.15 
 
 WISCONSIN. 
 
 City Bonds.. 28 
 
 Cities May Borrow Money 
 
 and Issue.. 28 
 
 Cancelation. 28 
 
 Form. 28 
 
 Payment of. 28 
 
 Proposition Submitted... 28 
 
 Constitutional Limit.26 
 
 County Bonds.. 26 
 
 How Executed.__ 27 
 
 Issued under Ordinance.. 27 
 
 Payment. 27 
 
 Power to Issue.26 
 
 Refunding. 27 
 
 Sale of. 27 
 
 Liability . 26 
 
 Municipal Subscriptions. 26 
 
 Town Bonds. 29 
 
 Funding. 29 
 
 When May be Issued. 29 
 
 Notice. 29 
 
 Resolution Required. 29 
 
) 
 
 » .' 
 
 > 
 
 
 ) 
 
S. A. KEAN. JOHN FARSON. 
 
 S. A. KEAN & CO. 
 
 BANKERS, 
 
 Successors to PRESTON, KEAN 6c CO. 
 
 We receive accounts of Banks, Bankers, Merchants, 
 Corporations, and Individuals, on favorable terms. 
 
 Credit, Time and Sight Items on Chicago and other 
 points. 
 
 Certificates of Deposit issued. 
 
 Buy and Sell Foreign Exchange on the principal 
 European and Continental Cities. 
 
 Letters of Credit issued, available in all parts of 
 the world. 
 
 Deal in Government, State, Municipal, and School 
 Bonds. Also Chicago City and Cook County Park and 
 
 Local Bonds. 
 
 Collections promptly remitted, or reasons for non¬ 
 payment.