be agreed upon by the contracting parties. Said bonds shall be printed, lithographed or engraved on good bond paper, and a duly authenticated copy of this act shall be printed on the back of each bond, and they shall recite upon their face that they have been issued under and by authority of this act (naming it by its title, and giving the date of its approval).

§ 3. BONDS AUTHORIZED BY ELECTION.] Bonds issued under the provisions of this act shall be authorized, in the case of an incorporated board of education, after the issuance of bonds shall have been approved by an election, as hereinafter provided by a resolution of the board of education, and said bonds shall be executed by the president and attested by the clerk thereof, and the seal of said board of education shall be affixed thereon; and in the case of a school district they shall be authorized by a resolution of the school board, and shall be executed by the president or director of such board, as the case may be, and attested by the clerk thereof.

§ 4. BONDS, HOW NEGOTIATED.] The officers authorized by the provisions of this act to authorize the issuance of the bonds, shall provide for the sale and negotiation thereof, or for the exchange of said bonds for the outstanding bonds, warrants, orders or other evidences of indebtedness authorized to be refunded under this act, as they may deem best, provided that such refunding bonds shall not be sold or exchanged for less than their par value.

§ 5. BOND REGISTER TO BE KEPT.] A register of all bonds issued under the provisions of this act shall be made by the clerk of the board issuing them, and shall be kept in his office as a public record, showing the number, date, amount, rate of interest (whether payable annually or semi-annually) and the time and place of payment, of all bonds so executed and issued.

§ 6. REGISTRATION AND CANCELLATION.] And after such outstanding bonds, warrants, orders, or other evidences of indebtedness, shall have been so refunded, the same shall be registered in the manner hereinbefore provided for bonds issued under the provisions of this act, and shall be canceled by writing across the face of each bond, warrant, order, or other evidence of indebtedness, the words: "Paid by refunding bond No....., this day of...., 188..," (inserting the number, date and amount) and the clerk shall carefully preserve such refunded evidences of indebtedness.

§ 7. TAX FOR PAYMENT OF INTEREST.] At the same time that other taxes are levied there shall be levied annually on the taxable property of any school district or city whose incorporated board of education is authorized to levy taxes upon the taxable property therein, for the support and maintenance of the schools therein, a tax sufficient to pay the interest on such bonds as the same becomes due, and after seven (7) years from the date of such bonds in addition thereto, annually a sinking fund tax sufficient to pay the

principal of such bonds when they mature, which tax shall become due and be collected the same as other taxes.

§ 8. MATURED BONDS TO BE PAID ON PRESENTATION.] When said bonds and the several interest coupons thereto attached mature, it shall be the duty of the treasurer of such incorporated board of education or school district issuing them, to pay the same on presentation and to cancel them as hereinbefore provided for the cancellation of refunded bonds, warrants, orders or other evidences of indebtedness.

§ 9. NOTICE OF ELECTION—WHAT TO CONTAIN.] The question of refunding such bonds, warrants, orders or other evidences of indebtedness, shall first be submitted to a vote of the qualified electors of the town or city wherein said board of education shall be situated, or doing business, or in said school district, by giving twenty (20) days' notice of such submission, by posting up written notices in three (3) of the most conspicuous and public places within the limits of such board of education or school district, and by publishing said notice for twenty (20) days, in a newspaper published in the county, giving the time and place of holding such election, and the amount of bonds to be issued in refunding, the rate of interest which they shall bear, and the length of time they shall run, and the voting shall be done by means of written or printed ballots, and all ballots deposited in favor of issuing the bonds shall have thereon the words: "For issuing bonds in the amount of $....," (naming the amount) and those opposed thereto shall have thereon the words: "Against issuing bonds," and if two-thirds () of all the votes cast shall be in favor of issuing bonds, the proper officers shall forthwith proceed to issue bonds in accordance with the votes cast, but if one-third () of all the votes cast are opposed to issuing bonds, then no further action can be had and the question shall not again be submitted to a vote for one year thereafter; Provided, That no school district in which less than twenty-five legal votes were cast at the annual school election next preceding the election herein provided for, shall avail themselves of the provisions of this act.

§ 10. All acts or parts of acts, whether general or special provisions of the charter of any incorporated board of education or city, in conflict with the provisions of this act are hereby repealed. § 11. This act shall take effect and be in force from and after its passage and approval.

Approved, March 11, 1887.

CHAPTER 12.

AUTHORIZING CITIES TO REFUND OUTSTANDING BONDED INDEBTEDNESS.

AN ACT Authorizing Cities to Refund Outstanding Bonded Indebtedness.

Be it Enacted by the Legislative Assembly of the Territory of Dakota:

§ 1. BONDS MAY BE REFUNDED.] All bonds heretofore issued by any city, or by or under the authority of the board of education of any city in this Territory for school or school house purposes, may be refunded in the discretion of said board in the manner hereinafter provided, whenever there is not sufficient money in the treasury of such city to pay such bonds, and legally applicable thereto.

§ 2. DENOMINATION OF BONDS.] Said bonds shall be in denominations of not less than one hundred nor more than one thousand dollars, shall be numbered from one upward consecutively, shall bear the date of their issue, shall be made payable to the purchaser or bearer, shall be payable ten years from date, and shall bear interest at a rate not exceeding seven per cent. per annum, payable annually, with interest coupons attached, and principal and interest shall be made payable at such place as may be designated by the board of education. The bonds and each coupon shall be signed by the mayor and attested by the city clerk, under the seal of the city. Said bonds shall be printed, engraved or lithographed on good bond paper, and a duly authenticated copy of this act shall be printed on the back of each bond.

§ 3. BOARD OF EDUCATION TO LEVY TAX.] The board of education shall levy each year upon the taxable property of such city a tax sufficient to pay the interest on said bonds as the same accrues, and after five years from the date of said bonds, an annual sinking fund tax, sufficient for the payment of said bonds at maturity, which taxes shall become due and be collected the same as other city taxes.

§ 4. BONDS, HOW EXECUTED.] The refunding of indebtedness and the issuance of bonds provided in this act shall be under the control and direction of the board of education, and a resolution of said board directing the execution of such bonds, and specifying the number and amount of each bond, shall authorize and require the mayor and city clerk to execute the same in the manner herein provided, and deliver the bonds so executed to the board of education, who shall provide for the sale and negotiation

thereof, or for the exchange of said bonds for outstanding bonds authorized to be refunded under this act, as they may deem best; Provided, That such refunding bonds shall not be sold or exchanged at less than par value. Both principal and interest of said bonds shall be paid by the city treasurer by warrants drawn upon the funds created therefor, and issued under the direction of the board of education. A duly certified copy of the resolution of the board of education, authorizing and directing the execution of such bonds by the mayor and city clerk, shall be printed on the back of each bond. A register of all bonds so executed shall be made by the city clerk and kept in his office as a public record, showing the number, date, amount, interest, name of payee, and when and where payable, of each and all bonds executed under the provisions of this act. And after such outstanding bonds shall have been so refunded, the same shall be placed in the hands of the city clerk, after having been first marked across the face thereof in red ink the words, "refunded bond;" and the city clerk shall thereupon make a record of each bond in the same manner provided herein, for bonds issued under this act, and at the next regular meeting of the city council shall cancel and burn. said bonds in the presence of the city council, and make a record of such action in the proceedings of the council. Approved, March 8, 1887.

CHAPTER 13.

AUTHORIZING COUNTIES TO FUND OUTSTANDING INDEBTEDNESS.

AN ACT Entitled an Act Authorizing and Empowering the Organinized Counties of Dakota to Issue and Dispose of Bonds to Provide Funds to pay Outstanding Indebtedness, and to Provide for the Payment of the Principal and Interest Thereof.

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Each and

Be it Enacted by the Legislative Assembly of the Territory of Dakota: § 1. COUNTY COMMISSIONERS TO ISSUE BONDS.] every organized county of this Territory is hereby authorized and empowered by and through its board of county commissioners, when in the judgment of said board it is deemed to be to the best interests of the county, to issue its negotiable bonds in the name of the county corporation, for the sole purpose of funding the outstanding indebtedness, which existed against such county on the first (1st) day of January, 1887; Provided, That no bonds shall be issued under the provisions of this act to pay or fund any indebtedness, except such

as is represented by the legally issued county warrants or orders of such county, issued since January first (1st), 1880. Said bonds shall be in denominations of not less than one hundred (100) dollars, nor more than one thousand (1,000) dollars, shall bear the date of their issue, shall be made payable to the purchaser or bearer, and shall be made payable in not less than five (5) nor more than fifteen (15) years from their date, and bear interest at the rate of not exceeding seven (7) per cent. per annum, payable semi-annually, with coupons attached for each interest payment; Provided, That no bonds shall be issued under the provisions of this act to provide money, to pay, or to fund any indebtedness created after July twenty-ninth (29th), 1886, which in the aggregate, including the then existing indebtedness, exceeded four (4) per centum on the value of the taxable property within such county, to be ascertained by the last assessment for territorial and county taxes, previous to the incurring of such indebtedness. The bonds and each coupon shall be signed by the chairman of the board of county commissioners, and shall be attested by the county clerk; Provided, That in counties having an auditor, the attestation shall be made by the auditor. The seal of the county shall be affixed to each bond, but not to the coupons. Said bonds shall be printed, engraved or lithographed on good bond paper, and each bond shall state on its face that it is issued in accordance and in strict compliance with an act of the Legislative Assembly of the Territory of Dakota, entitled "An act authorizing and empowering organized counties of Dakota Territory to issue and dispose of bonds, to provide funds to pay outstanding indebtedness, and to provide for the payment of the principal and interest thereof." Approved.. ..1887, (inserting date of the approval of this act,) and a copy of this act shall be printed on the back of each bond. Said bonds may be made payable anywhere in the United States.

§ 2. BONDS HOW SOLD.] Said bonds may be exchanged at not less than their par value for an equal amount of the orders or warrants permitted to be funded under the provisions of section one (1) of this act of the county issuing them; or said bonds may be sold by the board of county commissioners, at not less than their par value, and the proceeds applied solely to the payment of such indebtedness. When such warrants are so taken up and paid by the issue of bonds, as herein provided for, such warrants shall be marked "Paid by bond No...." (giving number of bond) and shall be retained by the county treasurer until his settlement with the county commissioners, and shall then be carefully compared with the bond register, and after such comparison shall be placed in the custody of the county auditor or county clerk, and it shall be his duty to preserve the same. The county treasurer shall endorse upon each warrant so taken up and paid, the amount of interest allowed thereon.

§ 3. TAX FOR INTEREST AND SINKING FUND.] The board of