Bonds, Sale of

SEC. 5. Be it further enacted, That said bond shall be sold by competitive bidding by sealed bids that the Judge of the County Court is hereby author ized to sell said bonds as herein provided and mak delivery thereof, but said bonds are not to be sole for less than par and accrued interest. Before sell ing said bonds shall be advertised for sale in the Herald Democrat, a newspaper published at Tren ton, Tennessee, having a general circulation through out the County, giving notice that said bonds have been authorized to be sold by the General Assembly of the State of Tennessee, and that the same will be sold at the office of the County Judge of Gibsor County, Tennessee, at the hour and place designatec in said advertisement to the highest bidder; that sealed bill will be received up to said hour, and that said bids must be filed with the County Judge; said first advertisement of notice shall appearin said papei not less than ten days before date of sale; that a similar notice of the foregoing shall be published in some financial journal, published in New York City, not less than five days before the date of said sale, but the failure to give the said notices shall in no event invalidate the sale of the bonds, and the County Judge, shall have the right to reject any and all bids.

Sec. 6. Be it further enacted, That the County Judge and the County Court Clerk shall issue said bonds and sell the same as herein above provided as soon as practicable.

Sec. 7. Be it further enacted, That all the war rants heretofore issued by Gibson County, Tennes see, that are to be paid from the proceeds of the sale of these bonds are valid and subsisting indebtedness of Gibson County, Tennessee, and have been duly and legally issued by said County, and by and through the proper authorities.

SEC. 8. Be it further enacted, That the purchase of the bonds herein authorized shall in no wise bo responsible for the failure, if any there be, on the part of the officers of Gibson County, Tennessee, to apply the proceeds of the sale of the said bonds to the discharge of the warrant indebtedness of the said County.

Sec. 9. Be it further enacted, That the County Trustee of Gibson County, Tennessee, is hereby authorized to pay the fee charged by the National Bank of Commerce, in New York City, for its seryites, in paying the principal and interest of the said bonds.

Sec. 10. Be it further enacted, That said bonds, principal and interest, shall not be taxable in this State by the State or by any County or Municipality of this State.

Sec. 11. Be it further enacted, That this Act take effect froin and after its passage, the public welfare requiring it. Passed January 11, 1921.

W. W. BOND, Speaker of the Senate.

ANDREW L. TODD, Speaker of the House of Representatives. Approved January 19, 1921.

A. A. TAYLOR,

Governor.

Applies to
Memphis

CHAPTER NO. 5.

HOUSE BILL NO. 3.

(By Shelby Delegation.)

AN ACT to authorize incorporated Boards of Education of public schools in cities and taxing districts of onehundred sixty thousand inhabitants or over, according to the Fede: al Census of 1920 or any future Federal Census, to borrow money, incur debt and issue revenue notes, bonds or other evidences of indebtedness in anticipation of current revenue, and also to temporarily finance purposes for which bon is may be authorized, and to issue revenue notes or bonds, to refund such revenue notes or bonds at their maturity, to provide for the pa ment of such revenue notes or bonds and such refunding notes or bonds and to define the term fiscal year for certain purposes.

any

SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That incorporated Boards of Education in cities or taxing districts of one-hundred sixty thousand inhabitants, or over, according to the Federal Census of 1920, or future Federal Census, be and the same are hereby invested, in addition to powers already possessed by them, with the powers, rights and authority contained in this and the succeeding sections of this Act to wit: Said incorporated Boards of Education shall have the power from time to time to borrow Bonds, right to money and issue revenue bonds or notes bearing interest at not more than six per cent per annum and maturing not more than one year from their date, for the purpose of providing funds in anticipation of the collection of school taxes, and revenues of the current calendar year in which said revenue bonds or notes are issued, said bonds or notes to be issued, for the purposes for which said taxes and revenues are collected, and also to issue refunding bonds or notes with like limitations upon interest and maturity, where such refunding notes or bonds shall be necessary to provide for the payment of any of such revenue notes or bonds at their maturity. At no time shall the Issue, limited total amount outstanding of one (1) such revenue notes or bonds issued anticipation of revenues, and (2) such refunding bonds or notes exceed seventy

five per cent of the revenues of such Board of Education derived from taxes for general school purposes of the previous fiscal year, exclusive of any taxes levied for the purpose of paying the principal and interest of the bonded debt of such Board of Education; provided, that where refunding notes or bonds have been issued or have been ordered issued for the purpose of refunding any of said revenue Lotes or bonds, the said original notes or bonds so ordered to be refunded shall not be included in estimating the total amount of revenue notes or bonds outstanding, but for that purpose, shall be treated as having been refunded and retired by such refunding notes or bonds; provided, however, that said power

shall not be exercised unless the consent of the Board of Commissioners, or other governing body of said cities or taxing districts shall first be obtained to the exercise of said power, and this consent shall be evidenced by a resolution regularly passed and entered upon the minutes of such governing body.

Sec. 2. Be it further enacted, That said revenue notes or bonds and said refunding notes or bonds Bonds, sale of shall be sold by said Board of Education in such manner, and upon such terms as they may elect, either at public or private sale, but shall not be solá for less than par, except by a vote of at least twothirds of the members of such Board of Education, and then at a price of not less than $99.00 on the $100.00

. The said notes or bonds, shall be in such form as may be prescribed by such Board of Education and shall be the absolute, direct and general obligation of such Board of Education. The proceeds of said revenue notes or bonds shall be paid, into the treasury of such Board of Education to the credit of the general fund or any special fund against which they shall have been issued.

Sec. 3. Be it further enacted, That the said Boards of Education are hereby clothed and vested with the irrepealable power and authority to pay Bonds, redemp the holders of said notes or bonds, as their interest

row

may appear, the receipts from taxes collected by the governing bodies of cities wherein said Boards of Education so issuing said notes or bonds have their situs for the account of said Boards of Education and likewise, the receipts from taxes levied and collected by the tax levying and collecting machinery of the State and County, wherein said Boards of Education have their situs. The said Boards of Education shall pay said notes or bonds. and the refunding notes or bonds and the interest on same as same mature and any lawful holder of any such note or bond or any refunding note or bond shall be entitled to enforce his rights thereunder by legal process.

SEC. 4. Be it further enacted, That such incorRight to borporated Boards of Education shall likewise have full power and authority to borrow money every year from time to time as needed for the purpose of providing for the payment of interest upon any of the bonded indebtedness of such Boards of Education, in anticipation of the collection of taxes already levied or to be levied for that purpose and may issue temporary temporary notes or bonds therefor, but the total amount of such temporary notes or bonds shall at no time exceed seventy-five per cent of the taxes levied for the payment of such interest, and said temporary notes or bonds shall be issued and sold subject to all restrictions and limitations as to maturity rate of interest, and price at which the same may be sold, as are stated in the preceding sections hereof with reference to other notes or bonds issued in anticipation of collection of revenue, provided, however, that said power shall not be exercised unless the consent of the Board of Commissioners, or other governing body of said cities or taxing districts shall first be obtained to the exercise of said power, and this consent shall be evidenced by a resolution regularly passed and entered upon the minutes of the governing body.