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treasurer, who loans it at the legal rate of interest, secured by mortgage on unencumbered real estate for a term equal to that the bonds have to run, or invests it in bonds of the State of New York or of the United States. At maturity of the town or village bonds, said money is applied to their payment by the supervisor of the town or president of the village, who receives it from the county treasurer, giving security for the same in double the amount received, and purchases or pays the bonds, and cancels them in presence of the town board or village trustees, as the case may be. By an Act of 1878, bonds may be paid up or retired by the issuing of bonds of the same amount; provided, however, that such new bonds shall only be issued when the existing bonds can be retired or paid by the substitution of new bonds or by money realised thereon in the place and stead of existing bonds bearing a lower rate of interest than the bonds authorised to be retired or paid. Holders of the old issue may exchange their bonds for bonds of the new issue at a lower rate of interest, and the date of payment of such substituted bonds may be extended for a period not exceeding thirty years beyond the time when the principal of the bonds surrendered would have become payable. Whenever any bonds of any village, city, town, or county become due and payable, or in anticipation thereof, the officers or boards may, in their discretion, cause to be issued new bonds having not more than thirty years to run, provided, however, such new bonds shall be sold at public auction after due notice as required by law in the case of the sale of mortgaged real estate under a decree of foreclosure in the supreme court, at not less than par.

No new bonds shall,

in any case, be sold except at a lower rate of interest than that borne by

those due and payable. The principal of such bonds may be made payable by instalments yearly, or in periods of years. The city and county of New York, the city of Brooklyn, and the county of Niagara, except the town of Niagara, are exempt from the provisions of this Act.

If a final judgment for a sum of money, or directing the payment of money, is recovered against any county, town, city, or incorporated village, and the same remains unpaid, and the execution thereof is not stayed as required by law, or if so stayed the stay has expired, it is the duty of the board of supervisors, or of the common council, or of the trustees of an incorporated village, to assess, levy, and cause to be collected, at the same time and in like manner as other moneys, for the necessary expenses of the county, town, city, or village, as the case may be, an extra sum of money sufficient to pay the said judgment, with the interest thereupon, and the fees and expenses chargeable by law upon the execution, if any, issued to collect the same.

No restriction or limitation imposed by law as to the sum to be raised in any year in any city or village applies to the moneys thus to be raised, but these moneys are raised in addition to any sum so restricted or limited. In the city of New York the powers and duties devolved upon the common council of a city are exercised by the board of estimate and apportionment.

Section 11 of article viii. of the constitution of the State of New York forbids any county, city, town, or village to "give money or property, or loan its money or credit to, or in aid of, any individual, association, or corporation, or become, directly or indirectly, the owner of stock in, or bonds of, any association or corporation, nor shall any such county, city, town, or village be allowed to incur

any indebtedness except for county, city, town, or village purposes. "This section was added in 1874, and practically abrogated a number of Acts, from time to time previously passed by the legislature, authorising a majority of the taxpayers of any municipal corporation (i.e., city, town, or incorporated village) who were taxed or assessed for property, not including those taxed for dogs or highway tax only, upon the last preceding assessment-roll or tax-list, and who were assessed or taxed, or represented a majority of the taxable property upon said last assessment-roll or tax-list, to present a petition duly verified by one of the petitioners to any judge of the supreme court at any special term of said court (previous to the Act of 1872 it had been the county judge of the county), setting forth, inter alia, that they desired that such municipal corporation should create and issue its bonds to an amount named in the petition, and invest the same, or the proceeds thereof, in the stock bonds (as said petition might direct) of such railroad company in this state as might be named in the petition. Any solvent corporation or company assessed or taxed as aforesaid might join in this petition, and had all the rights and privileges as other taxpayers. Any person, partnership, or corporation upon whom it should have been intended to 'levy a tax by virtue of said last assessment-roll and tax-list, under whatever name, and who should have paid, or was liable to pay, such tax thus intended to be assessed and levied, should be a taxpayer entitled to represent the property thus taxed. This petition might be absolute or conditional; and if conditional, the acceptance of a subscription founded on such petition bound the railroad company accepting it to the observance of the condition or conditions specified in the petition; provided, however,

or

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that the non-compliance with any condition inserted in such petition should not in any manner invalidate the bonds created and issued in pursuance of such petition. No municipal corporation should issue its bonds for a greater amount than 20 per cent of the taxable property thereof, as appeared on its said last assessment-roll or tax - list. Three freeholders, residents and taxpayers within the corporate limits of the corporation, were appointed commissioners, and held their offices for five years, and until others were appointed. A majority of these commissioners formed a quorum, and each commissioner received $3 per day for each day actually engaged in the discharge of their duties and their necessary disbursements, audited and paid by the usual disbursing officer of the municipal corporation. It was the duty of these commissioners, with all reasonable despatch, to cause to be made and executed the bonds of such municipal corporation, attested by the seal of such corporation affixed thereto, or, if it had no seal, by their individual seals, and signed and certified by said commissioners. These bonds should become due and payable at the expiration of thirty years from their date. The savings banks of the state were authorised to invest in said bonds not to exceed 10 per cent of their deposits. All taxes, except school and road taxes, collected for the next thirty years, or so much thereof as might be necessary, in any town, village, or city, on the assessed valuation of any railroad in said town, village, or city, for which said town, village, or city had issued bonds to aid in the construction of said railroad, should be paid over to the treasurer of the county in which said town, village, or city lay; and it was the duty of the treasurer with this money, including interest

thereon, to purchase the bonds of the town, issued by it, to aid the construction of any railroad, when the same could be purchased at or below par.

The bonds so purchased were immediately cancelled and deposited with the board of supervisors. In case the bonds could not be purchased at or below par, the treasurer invested the money, with the accumulated interest thereon, in the bonds of the state, or of any city, county, town, or village thereof, issued pursuant to the laws of the state, or in bonds of the United States, to be held as a sinking fund for the redemption and payment of the bonds issued in aid as aforesaid. These railroad commissioners subscribed, in the name of the municipal corporation which they represented, to the stock or bonds of the railroad company named in the petition (as the petition might direct), to an amount equal to the amount of bonds so created by them, and paid for the same by exchanging the said bonds therefor at par; or they might, at their discretion, sell and dispose of the said municipal corporation bonds at rates not less than par, and invest the proceeds thereof in such stock or bonds of such railroad company, as might be directed in said petition. They represented, either in person or by proxy, such municipal corporation at all meetings of such railroad bondholders or stockholders. Such stock or bonds so purchased might be sold by the commissioners before the maturing of the bonds of the municipal corporation, only upon the order of the county judge of the county, made upon the petition of a majority of the taxpayers of said municipal corporation, representing a majority of the taxable property thereof; and the proceeds from such sale should be forthwith paid by them to the treasurer (or other proper officer) of such municipal corporation, to be

by him invested in a sinking fund. These commissioners might vote for directors on the stock of such town, village, or city. The bonds of any municipal corporation, issued as aforesaid, are a charge upon the real and personal estate within the limits thereof, and the principal and interest thereof, when due (or as much thereof as shall fail to be met by the interest on such railroad bonds, or the dividends on such railroad stock or the said sinking fund), shall be collected and paid in like manner as other debts, obligations, and charges against the said corporation. The said commissioners should also provide, within three years from the time of issuing said bonds, for the annual payment of at least 1 per cent of the same to constitute a sinking fund, so as to secure the final liquidation of the bonds within twenty-five years after their date; and for that purpose they should receive and apply annually the surplus dividends on the stock held by said towns, over the amount necessary to pay the annual interest on said bonds; and if the amount of such surplus dividends was not sufficient for the annual payment of said 1 per cent, and the commissioners should not have received sufficient from the sale of the stock belonging to the town to pay the same, and from other sources, then the deficiency should be reported by the commissioners to the board of supervisors, to be levied and raised annually in the manner provided for paying the interest on these bonds. The treasurer (or other proper officer) of the municipal corporation has the custody of the bonds or certificates of stock, and collects the interest or dividends thereon; and applies the same towards the payment of the interest upon the said corporation's bonds, any surplus going to make up a sinking fund for the redemption of

the principal of the corporation bonds. In case the stock or bonds purchased by the commissioners are sold, the proceeds thereof are likewise invested in a sinking fund by the treasurer or other proper officer; and if not sold when the bonds issued by the commissioners mature, the commissioners sell the same, or so much thereof as is necessary, to pay the outstanding principal sum due on such bonds in full, and pay the proceeds thereof to such treasurer or proper officer, to be by him applied to the redemption and payment of such bonds. The bonds issued are registered in the office of the county clerk of the county in which such corporation is situated, and have the words, "registered in the county clerk's office," written printed upon them, attested by the official seal of said clerk. It was competent for any railroad corporation to enter into any agreement with the commissioners, limiting and defining the times when, and the proportions in which, the bonds or their proceeds should be delivered

or

to

said corporation, and the place or places where, and the purpose for which, such bonds or their proceeds should be applied or used. The commissioners should not be compelled by any court to deliver such bonds or their proceeds until such agreement should be executed, if required by them. But in case the commissioners and the railroad corporation could not agree, or in case the commissioners refused to make any agreement, then in either case the supreme court at general term might determine upon what terms and conditions the bonds should be delivered, and have power to compel such delivery by the usual process of the court. Review of the proceedings should be by certiorari. railroad commissioners were required

The

tors of their respective towns, cities, or villages, whose duty it is annually to examine and audit the receipts and disbursements of either town, city, or village officers, at each annual meeting of said boards of town auditors, or the auditing board of any city or village, all such bonds and coupons thereof which have been paid by them respectively during the year then ending; also to render a written statement or report annually to said board, showing in items all their receipts and expenditures with vouchers. All bonds and coupons so presented and cancelled are deposited for safe keeping and future reference in the office of the clerk of the county in which such towns, cities, or villages are respectively situated; and said boards of town auditors or auditing boards prepare and sign a certificate showing a full description of all bonds or coupons so cancelled and deposited by them, and file this certificate in the office of the clerk of their respective towns and villages, and in cities in the office of the clerk of the city. The railroad commissioners, within ten days after entering upon the duties of their office, and before receiving any funds belonging to the town, &c., make and deliver to the clerk thereof a bond in such penalty and with such sureties as the board of auditors prescribe, conditioned for the faithful discharge of their official duties. No commissioner of a town is eligible to the office of supervisor thereof. In 1875 were passed "An Act to authorise towns, cities, and villages to pay their bonds issued for railroad purposes by exchanging therefor their railroad stock or bonds, and to exchange their stock of any railroad corporation for the bonds of such corporation; " and also "An Act to provide for the sale of stock and bonds of bankrupt railroad companies by municipal corporations

to present before the board of audi- | holding the same, and for the dis

position of the proceeds of such stock or bonds." By the laws of 1877, chap. 349, it was made the duty of the railroad commissioners to report annually the total amount of bonds issued by the town, city, or village represented by such commissioners, the date and time when the principal of the bonds will become due, the rate and times of payment of interest thereon, the amount of such principal or interest paid, the amount of said principal or interest due and unpaid and to become due before the annual tax levy and collection of tax for the year next succeeding, and the amount in their hands applicable to the payment of the principal of said bonds or the interest thereon. This report, signed and with an affidavit (affixed thereto) of at least one commissioner that it is in all respects true and correct, is delivered to the board of supervisors of the county within three days after the commencement of the annual meeting thereof. It is the duty of this board, at the annual meeting when this report is received, to cause to be levied and raised by tax on the taxable property of said town, city, or village, the amount necessary to pay the principal and interest due and to become due at any time prior to the annual tax levy and collection of tax for the year then next succeeding, as shown by said report, after deducting moneys on hand for the purpose. The amount thus raised, and such other moneys, are paid over to the said commissioners, and by them applied to the purpose for which it was collected; but before any money is so paid to the commissioners, they shall severally execute to the town, city, or village, and deliver to the town, or city, or village clerk, as the case may be, a bond with two or more sureties in double the amount of the money to be so received by them, as near as can be ascertained,

conditioned for the proper and due disbursement of such money, and the proper accounting therefor, which bond shall be first approved by the supervisor or the county judge, and by the mayor or president of cities or villages; and said bond shall be renewed annually. It is the duty of the commissioners to pay the principal and interest of bonds at their maturity, to cancel the bonds or interest coupons as paid, and to keep a full record thereof, to be at all times open to the inspection of the supervisor, members of the board of town auditors, and justices of the peace of the town, or members of common councils, or trustees of cities or villages; and the commissioners roport in writing to the board of town auditors at their annual meeting, and to the common council or trustees of cities or villages on the first day of April of each year, the date, number, and amount of all bonds and interest coupons paid by them and cancelled during the past year and since their last report, and at the same time produce and deliver the bonds and interest coupons cancelled, taking a receipt therefor, which sets forth the date, number, and amount of each bond or coupon.

A

duplicate of this report is filed at the same time with the clerk of the town, city, or village. The town auditors, and common council or trustees, as the case may be, indorse upon the report that the bonds and interest coupons mentioned therein, duly cancelled, were received, if such is the case; and if all or any of them are not so received, so state in the indorsement. They then deposit the cancelled bonds and coupons, with the report, in the office of the clerk of the county for safety. The provisions of this Act do not apply to certain counties. In 1880 an Act authorised and empowered the several towns, cities, and villages in certain counties to

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