North Carolina - Acts on Education Topics

An Act to Authorize the Town of Durham to Issue School Bonds.

1891 Public Laws: Chapter 589

Public Laws of the State of North Carolina Passed in 1891 - Pages 639-641.
Click Here to view the original February 22, 1887 Act, as described in Section 3 below.

The General Assembly of North Carolina do enact:

Section 1. That the commissioners of the town of Durham be and the same are hereby authorized to issue coupon bonds of the town of Durham not to exceed in amount the sum of twenty-five thousand dollars ($25,000), and in denominations of not less than one hundred dollars nor more than one thousand dollars, bearing interest from date of bonds at a rate not to exceed the rate of interest allowed by general law, and payable semi-annually on the first day of January and the first day of July of each year until the said bonds are paid; that the said bonds shall be made payable at a time to be fixed by said commissioners and named therein not to be less than ten nor more than thirty years from the date thereof: Provided, however, that the said bonds [board] of commissioners of the town of Durham may divide said bonds into classes as they may determine and have them mature at different convenient dates between the limits aforesaid. It is further enacted that said bonds and their coupons shall be numbered, and the bonds shall be signed by the mayor of the town of Durham and countersigned by the clerk of the board of commissioners of said town and have the corporate seal of said town affixed thereto, and the coupons thereto attached shall be signed by the mayor of said town; that a record shall be kept of said bonds showing the numbers and denominations thereof and to whom sold, the dates of issuing thereof and when the same will mature, and the interest-bearing rate thereof, the amount received from the sale of the same and the date of paying the proceeds into the treasury of said town, and such other data in relation to the same as said board of commissioners may direct to be kept.

Sec. 2. That the bonds hereby authorized to be issued shall not be sold for less than their face value, and the mayor of said town shall not deliver said bonds, or any of them, to the purchaser thereof until the purchase-money thereof shall be paid to the treasurer of said town, and his receipt to the purchaser produced before the mayor as evidence of such payment, and the treasurer of said town shall receive all such moneys paid in the purchase of bonds in his official capacity as treasurer of said town, and he and the sureties on his official bond shall be liable to account for and pay over the same as is provided in this Act, or as may be otherwise provided by the laws relating to the treasurer of said town of Durham; and it shall be the duty of the board of commissioners of said town of Durham to see to it that the bond of said treasurer shall at all times be sufficient in amount and with satisfactory sureties to provide against any loss of money arising from the sale of said bonds, and to that end may at any time require said treasurer to renew his official bond in such sum and with satisfactory sureties as they may require, and in default thereof remove him from his office as treasurer.

Sec. 3. That the treasurer of the town of Durham shall keep separate from all other public moneys coming into his hands the moneys arising as proceeds from the sale of said bonds, and the same shall be expended by the school committee of the town of Durham in Durham County, the body corporate created by and existing under chapter eighty-six, laws of one thousand eight hundred and eighty-seven, entitled "An Act in Relation to the Public Schools in the Town of Durham," and said moneys shall be expended in the purchase of lands in the town of Durham and the erection thereon of suitable buildings and improvements and furnishing the same with necessary equipments and furniture for the accommodation of the public schools of the town of Durham; Provided, however, this Act shall be submitted to the qualified voters of said town of Durham for their ratification or rejection at an election to be held in said town at the same time and places of holding the next general election for mayor and commissioners of said town; the said election shall be advertised by the said board of commissioners of eaid town of Durham for thirty days prior to the day of election in one or more newspapers published in said town, and said election shall be held under the supervision of inspectors and poll-holders or judges of election appointed by said board of commissioners, and returns of the result of said election be made and certified in like manner as all other elections in said town, and in like manner the returns of said election and the result thereof be canvassed by said board of commissioners and the result declared. At said election those who are in favor of issuing said bonds shall vote "For school bonds," and those who are opposed shall vote "No school bonds," on written or printed ballots; that the number of ballots cast for and against said bonds and deposited in the ballot boxes provided for that purpose shall be counted and the result of said election certified and returned to the said board of commissioners of the town of Durham, and the same, when canvassed and declared as aforesaid, shall be certified under the hands of the mayor of said town and the said clerk of said board of commissioners and the corporate seal of said town of Durhan to the secretary of state, which said certificate of the result of said election shall be filed by the secretary of state in his office. If at said election a majority of the qualified voters of said town of Durham shall not vote ''For school bonds," then this Act shall be thereafter of no force and effect; but if at said election the ballots cast "For school bonds" shall be a majority of all the votes cast and also a majority of all the qualified voters of said town of Durham, then said board of commissioners shall proceed at once to issue and sell said bonds or so many thereof as may be necessary, in the judgment and discretion of said "School committee of the town of Durham," in Durham County, for the purposes aforesaid.

Sec. 4. In order to pay interest on said bonds and to create a sinking fund to pay the principal of said bonds at maturity, the commissioners of the town of Durham shall levy and collect a special tax of ten cents on every hundred dollars worth [of] taxable property in said town and thirty cents on each taxable poll, or such other special taxes as may be necessary for that purpose, observing the equation of taxation between property and polls fixed by the constitution for the purpose of state and county taxation, and the money paid into the said town treasury received from taxes under this Act shall be appropriated for the payment of the said bonds and coupons and for no other purpose whatsoever: Provided, all moneys remaining in the treasury belonging to said fund after all the aforesaid bonds and coupons shall have been redeemed may then be transferred by order of said school committee to the general funds of said town of Durham.

Sec. 5. The treasurer of said town of Durham shall be allowed in full payment for his services a commission of two per centum on the amounts disbursed under this Act arising from the sale of said bonds, but shall not be allowed anything for receiving the same from the town tax collector.

Ratified the 9th day of March, A.D. 1891.

Daniel G. Fowle, Governor
Thomas M. Holt, Lt. Governor and President of the Senate
Rufus A. Doughton, Speaker of the House of Representatives

State of North Carolina,
Office Secretary of State,
Raleigh, June 13, 1891.

I, Octavius Coke, Secretary of State, hereby certify that the fore-
going are true copies of the original acts and resolutions on file in
this office.

Octavius Coke,
Secretary of State.



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