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validity of this act, and the fact that any provision, section or part of any section is void, shall not be held to invalidate any other provision of this act.

Approved May 12, 1919.

Purposes for which may bond.

Consent required.

Authority granted.

Words defined.

Bonds, how issued.

[No. 226.]

AN ACT to authorize school districts in cities having a population of more than two hundred fifty thousand and comprising a single school district to borrow money to make permanent improvements by the issue and sale of bonds.

The People of the State of Michigan enact:

SECTION 1. Whenever the board of education of any school district in any city having a population of more than two hundred fifty thousand and comprising a single school district by resolution determines to purchase any buildings, or sites for buildings, playgrounds, athletic fields, or other lands which it is authorized to purchase; or to institute condemnation proceedings to acquire any buildings or sites for buildings, playgrounds, athletic fields, or other lands which it is authorized to acquire; or to erect or equip buildings which it is authorized to erect or equip; or to make any other permanent improvement which it is authorized to make, and the common council, city commission or other legislative body of the city in which said district is situated shall by resolution consent to and approve of the resolution by which said board of education so determines, said school district may, to purchase said buildings, sites or other lands, or to pay awards made in said condemnation proceedings, or to erect or equip said buildings, or to make any other said permanent improvement, borrow money by the issue and sale of bonds.

SEC. 2. Definition. The words "a single school district" as herein used shall signify the principal or dominating district in any city in which there is a principal or dominating district and but parts of other districts in outlying sections, and shall signify also the school district in any city wherein the territorial limits of said district and the jurisdiction of its board of education are coterminus [coterminous] and coextensive with the territorial limits of said city.

SEC. 3. Bonds issued and sold hereunder shall be designated General Public Improvement Bonds, School District of.... (here is to be inserted the name of the city in which said district is situated); they may be issued and sold on the faith and credit of said district for a fixed term of years, not exceeding thirty, payable at the end thereof or

in serial form with pro rata apportionment of sums payable annually; to bear interest, payable semi-annually, at a rate. not to exceed six per centum per annum; to be payable, both principal and interest, in gold coin of the United States of the standard of weight and fineness as of their date, or in lawful money of the United States; and in amounts, manner and form determined as herein provided.

Board may issue bonds.

determine to

Approval by

legislative

If approved.

SEC. 4. The board of education of said district may from time to time by resolution determine to issue and sell bonds hereunder on the faith and credit of the district; in its said resolution said board shall determine the sum of the bonds to be then issued and sold, the term of years for or over which they shall run, and a maximum rate of interest, payable semiannually, thereon. Said resolution shall be transmitted to the legislative body of the city in which the district is situ- body. ated and said legislative body may consent to and approve of the contemplated issue and sale of said bonds if upon the issue and sale thereof the gross debt of said district will not be in excess of two per centum of the assessed value of all the real and personal property in said district; or may, at Referendum. its option, submit the same to the electors of said district at any election, general or special; or may refuse to consent to and approve thereof, which refusal shall not preclude renewal of the project to issue and sell said bonds. If said legislative body consents to and approves of the contemplated issue and sale of said bonds or if a majority of said electors voting thereon approve the same and by the issue and sale thereof the gross debt of said district will not be in excess of two per centum of the assessed value of all the real and personal property in said district; or if three-fifths of the electors voting thereon approve the contemplated issue and sale of said bonds and by the issue and sale thereof the gross debt of said district will not be in excess of five per centum of the assessed value of all the real and personal property in said district, said legislative body shall by resolution determine the amounts of the several bonds which are to make up the sum of those to be issued and sold, the medium in which principal and interest will be payable, and where the same will be payable, and direct the controller or other like ministerial officer for sealed of said city to advertise, in manner and form and for a time proposals. by said legislative body prescribed, for sealed proposals to be by said ministerial officer received to a day and hour in said resolution fixed, or for open proposals to be received at an auction of said bonds to be conducted by said ministerial officer in the meeting place of said legislative body on a day and at an hour in said resolution fixed, proposals to be for open prosaid bonds at the greatest premium above par and the rate of interest in said resolution named, not greater than the maximum determined upon by said board of education, or at par and the lowest rate of interest named in the proposals, all proposals to indicate whether bonds are desired to be

Amounts of bonds, etc.

To advertise

posals.

May accept or reject.

Duty in acceptance of proposals.

Resolution

transmitted.

How bonds signed,

sealed, etc.

Delivery of bonds.

Funding of proceeds.

No bonds at less than par.

Tax to pay interest and principal.

payable at the end of the term of years for or over which they are to run or in serial form with pro rata apportionment of amounts payable annually. Said legislative body may accept proposals or may reject them, and may direct said ministerial officer to further advertise for proposals.

SEC. 5. Whenever said legislative body shall accept proposals for bonds it shall by resolution determine its acceptance thereof, authorize the sale of said bonds, determine the form of the bonds to be issued and sold, consistent with said acceptance, and direct said ministerial officer to prepare the same as coupon bonds or, if the purchaser thereof shall have so elected, as registered bonds. This resolution shall be transmitted to said board of education and if it be ratified by resolution of said board said ministerial officer shall so prepare said bonds.

SEC. 6. Said bonds shall be signed by the president of said board of education and bear the seal of said school district; be dated, numbered and recorded as may be by law directed as to bonds of the city in which said district is situated; be countersigned by the mayor or other like executive officer of said city and by said ministerial officer thereof and be attested by the city clerk of said city; and be delivered to the treasurer of said school district who shall, upon the outside fold thereof, certify over his signature and official title that

"This bond has been issued and sold in compliance with law; has been duly entered in the books of this office; and the par value of same, and all premiums on sale, and interest accruing before delivery, have been paid into this office."

Upon payment to him of the moneys payable under the accepted proposals therefor, with interest accrued to date of delivery, said treasurer shall deliver said bonds to those entitled thereto. Premiums and accrued interest shall be credited to the interest fund. Principal shall be used only for purposes for which said bonds were issued and sold, and shall be controlled and disbursed as is by law directed with reference to other funds of said district. Principal and interest shall be paid, and exchange of coupon bonds for registered bonds shall be made, as is by law directed with reference to like matters related to other bonds. No bonds shall be issued and sold hereunder at less than par, nor if disapproved on a referendum, but disapproval shall not preclude re-submission or renewal of project to issue and sell said bonds.

SEC. 7. In the annual budget of said board of education there shall be included and appropriated sums to be raised by taxation sufficient to pay interest on bonds issued and sold hereunder and to pay principal due on serial bonds at Sinking fund. maturity; in said budget, to provide a sinking fund for the payment of bonds payable at the end of a fixed term of years, there shall be included and appropriated each year prior to the fiscal year in which said bonds mature at least a pro

rata part of seventy-five per centum of the principal thereof, to be raised by taxation, and in the budget of the fiscal year in which said bonds mature there shall be included and appropriated amounts to be raised by taxation sufficient, with the amounts previously provided and the increment thereof, to pay said bonds at maturity.

construed.

SEC. 8. The provisions hereof are supplemental to, and are Provisions not to repeal, other provisions of law under which bonds of said district are authorized to be issued and sold, but no bonds shall be issued and sold hereunder by authority of said board of education and legislative body, even though approved by a majority vote of the electors, which, with other bonds of the district, will make the gross debt of said district in excess Maximum of two per centum of the assessed value of all the real and gross debt. personal property in the district. Bonds may, however, be issued and sold hereunder which, with other bonds of said district, will make said gross debt in excess of said two per centum, if approved by a three-fifths vote of the electors voting thereon at any election, general or special, but in no case shall bonds be issued and sold hereunder which with other bonds of the district will make said gross debt in excess of five per centum of said assessed value.

Approval for

excess.

SEC. 9. All provisions of law which require that the pro- Laws ceedings of said board of education or legislative body be applicable. submitted to the executive officer of said city and which regulate the procedure of said board or body on a veto of said proceedings shall apply concerning the issue and sale of bonds hereunder.

officers made

ex-officio

officers.

SEC. 10. All officers of the city in which said district is Participating situated, herein given participation in matters relating to the issue and sale of bonds hereunder, and those upon whom participation therein would devolve under revision or amendment of any special or local act, are for the purposes hereof made ex-officio officers of said district.

Approved, May 12, 1919.

Section amended.

Prerequisite deposit by foreign companies.

Companies on monthly payment premium plan.

[No. 227.]

AN ACT to amend section five of chapter two of part two of act number two hundred fifty-six of the Public Acts of nineteen hundred seventeen, entitled "An act to revise, consolidate and classify the laws of the State of Michigan relating to the insurance and surety business; to regulate the incorporation of domestic insurance and surety companies and associations and the admission of foreign companies; and to provide for the departmental supervision and regulation of the insurance and surety business within this State."

The People of the State of Michigan enact:

SECTION 1. Section five of chapter two of part two of act number two hundred fifty-six of the Public Acts of nineteen hundred seventeen, entitled "An act to revise, consolidate and classify the laws of the State of Michigan relating to the insurance and surety business; to regulate the incorporation of domestic insurance and surety companies and associations and the admission of foreign companies; and to provide for the departmental supervision and regulation of the insurance and surety business within this State," is hereby amended to read as follows:

SEC. 5. No foreign life insurance company shall be at liberty to transact the business of life insurance within this State and no foreign insurance company shall be at liberty to transact the business of casualty insurance within this State until such company, in addition to the requirements now made by law, shall have deposited with the State Treas urer at least one hundred thousand dollars, or in case of a foreign company organized to insure on the monthly payment premium plan any person or persons against bodily injury or death by accident and against disability on account of sickness, at least twenty-five thousand dollars, of the like securities required to be deposited by similar domestic companies formed under or subject to this act, which shall be held as security for any loss suffered by policy-holders of said company or companies, upon the same terms and conditions and with the same authority of sale or collection to satisfy judgments as are set forth in this act with respect to domestic Proviso, when companies: Provided, however, That when, by the statutes

security

waived.

of any other state, life insurance companies and casualty insurance companies organized or doing business therein are required to keep on deposit with the State Treasurer, Commissioner of Insurance or other State officer securities for the protection of policy-holders generally and any such company shall furnish to the Commissioner of Insurance of this State the certificate of the proper officer of such state, showing the

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