North Carolina - Acts on Education Topics

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

1899 Public Laws: Chapter 124

Public Laws and Resolutions of the State of North Carolina Passed in 1899 - Pages 251-254.

The General Assembly of North Carolina do enact:

Section 1. That the aldermen of the town of Durham be and the same are hereby authorized to issue coupon bonds not to exceed in amount the sum of sixteen thousand dollars and in denominations of not less than twenty-five dollars nor more than one thousand dollars, bearing interest from date of bonds at a rate not to exceed six per centum per annum, 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 aldermen and named therein, not to be less than three nor more than twenty-five years from date thereof; Provided, however, that the said aldermen of the town of Durham may divide said bonds into classes, as they may determine best 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 aldermen 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 the said town; that a record shall be kept of the 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 the board of aldermen 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 the town shall receive all such moneys paid in the purchase of the 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 aldermen of the 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, 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 money shall be expended in the purchase of lands in the town of Durham and the erection thereon of suitable buildings (either or both of these as the said school committee may deem best) and in furnishing the same with necessary equipments and furniture for the accommodation of the public schools of the town of Durham, and for such other purposes as the said school committee may order the same to be disbursed; 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 such a time as the aldermen may appoint within six months of the ratification of this Act; the said election shall be advertised by the said board of aldermen of the said town of Durham for thirty days prior to the day of election in one or more newspapers published in said town, and the said election shall be held under the supervision of inspectors and poll holders or judges of election appointed by the said board of aldermen, and the 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 the said board of aldermen and the result declared. At the 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 ballot; that the number of the ballots cast for and against the said bonds and deposited in the ballot boxes provided for that purpose shall be counted and the result of the said election certified and returned to the said board of aldermen of the town of Durham, and the same, when canvassed and declared as aforesaid, shall be certified under the hands of the mayor of the said town and the said clerk of the said board of aldermen and the corporate seal of the said town of Durham to the secretary of state, which said certificate of 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 the town of Durham shall not vote "For school bonds," then this Act shall be thereafter of no force and effect; but if at the 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 the said town of Durham, then the said board of aldermen shall proceed at once to issue and sell bonds or so many thereof as shall 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 the interest on said bonds and to create a sinking fund to pay the principal of said bonds at maturity the board of aldermen of the town of Durham shall levy and collect a special tax of six cents on every hundred dollars worth of taxable property in the said town and eighteen 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 the taxes under this Act shall be appropriated for the payment of 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 board of aldermen of the town of Durham may, if in their opinion at any time it becomes necessary or advisable, appoint a trustee whose duty it shall be to receive from the tax collector of the town of Durham all taxes collected under this Act for the purpose of paying the interest on said bonds and for creating a sinking fund to pay the principal of said bonds at maturity; and the said board of aldermen may prescribe the duty of said trustee, fix the amount of his compensation and the bond for the faithful performance of duty on his part. It shall be the duty of the said trustee to invest or lend the money coming into his hands for the purpose of creating a sinking fund in safe securities and upon real estate situated in the town of Durham; Provided, however, that no such investment or loan shall be made without the consent and approval of the school committee of the town of Durham, Durham County.

Sec. 6. The treasurer of the said town of Durham shall be allowed in full payment for his services a commission of one per centum of 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.

Sec. 7. This Act shall be in force from and after its ratification.

Ratified the 16th day of February, A.D. 1899.

Daniel L. Russell, Jr., Governor
Charles A. Reynolds, Lt. Governor and President of the Senate
Henry Groves Connor, Speaker of the House of Representatives

State of North Carolina,
Office of Secretary of State,
Raleigh, April 28th, 1899.

I, Cyrus Thompson, Secretary of State, hereby certify that the
foregoing (manuscript) are true copies of the original acts and reso-
lutions on file in this office.

Cyrus Thompson,
Secretary of State.



© 2017 - J.D. Lewis - PO Box 1188 - Little River, SC 29566 - All Rights Reserved