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such city, or the board of trustees of any such village, or the school board of any such school district, upon petition of two-thirds of the resident freeholders of such county, precinct, township or town, village or school district shall have the authority, and they are hereby required to issue the coupon bonds of such county, precinct, township or town, city, village, or school district, and after reg.stration to deliver the same to the owner or owners, holder or holders of such indebtedness, in satisfaction of the same, not exceeding the amount of the original indebtedness.

403 Sec. 39. Rate of interest-tax by board. Before issuing bonds under the provisions of the three next preceding sections, the board issuing the same shall by resolution entered upon its records recite the number and denomination of the bonds to be issued, the rate of interest, and to whom and when payable. Such bonds shall be payable in not more than twenty years from the date of their issue, or at any time before maturity, at the option of the board issuing the same. They shall bear interest at a rate not exceeding six per cent per annum, and not exceeding the rate of the indebtedness compromised, with interest coupons attached, payable annually or semi-annually, as provided in said bonds, and said board shall levy a tax on all the taxable property in such county, precinct, township or town, city, village, or school district in addition to other taxes, to pay the interest and principal of said bonds as the same shall mature.

404 Sec. 40. Record of transaction.-Every board issuing bonds under the provisions of the four next preceding sections shall keep a complete record of all the transactions connected therewith.

*Act held not to empower a school district to issue its bonds and deliver them to parties in compromise, or to take the place, of an indebtedness evidenced by school district war(45 Neb., 13.)

rants.

447 Sec. 83. School district issue bonds, when.-The district officers of any school district in Nebraska shall have power to issue the bonds of the district, for the purpose of purchasing a site for, and erecting thereon, a school

*Applies to sections 30-32, inclusive,

Conditions-description.

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house or schoolhouses, and furnishing the same, in such district, on the terms and conditions set forth in the succeeding sections of this article.

448 Sec. 84. Question to be submitted to vote.-No bonds shall be issued until the question has been submitted to the qualified electors of the district, and two-thirds of all the qualified electors present and voting on the question shall have declared by their votes in favor of issuing the same, at an election called for the purpose, upon a notice given by the officers of the district at least twenty days prior to such election.

All persons who are qualified to vote in a school district meeting are entitled to vote upon the proposition to issue bonds of the district whenever such question is properly submitted. Women entitled to vote at school elections may lawfully vote for or against school district bonds. 86 Neb,, 135.

449 Sec. 85. Petition for submission.-No vote shall be ordered upon the issuance of such bonds, unless a petition shall be presented to the district board, suggesting that a vote be taken for or against the issuing of such amount of bonds as may therein be asked for, to purchase a site for, or build a schoolhouse or houses, or for furnishing the necessary furniture and apparatus for the same, or for all these purposes, which petition shall be signed by at least one-third of the qualified voters of such district; Provided, the board of education in any city of the metropolitan class may order a vote upon the issuance of such bonds without a petition therefor

"One-third qualified voters," how ascertained. 41 Neb.. 593.

450 Sec. 86. Amount of bonds.-That no such bonds shall be issued in the aggregate amount to exceed five per cent (excepting in districts having over one hundred (100) school children) of the last complete assessment of the taxable property of the district, for state and county purposes, nor shall any district issue bonds unless there are at least twelve (12) children of school age residing within such district.

451 Sec. 87. Amount of bonds limited. The amount of bonds shall in no case exceed five hundred ($500) dollars in those districts having less than twenty-five (25) children and not less than twelve (12) of school age; and the amount of bonds shall not exceed two thousand ($2,000) dollars when the number of children of school age is twenty-five (25) or more and less than fifty (50); and the amount of bonds shall not exceed five thousand ($5,000) dollars when the number of children of school age in the district is fifty (50) or more but less than one hundred (100); and in districts having one hundred (100) or more children of school age, such amount as may be agreed upon, not to exceed twelve per cent of the assessed valuation of the last completed assessment.

452 Sec. 88. Rate of interest.-The bonds issued under this article shall draw such interest as shall be agreed upon, but not to exceed six per cent per annum.

453 Sec. 89. Description of bonds.-The bonds shall specify on their face the date, amount, for what purpose issued, the time they run, and the rate of interest; shall be printed on good paper, with coupons attached for each year's or half year's interest, and the amount of each year's interest shall be placed in corresponding coupons until such bonds shall become due, in a manner, so as to have the last coupon fall due at the same time as the

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bond; said bonds and coupons thereto attached shall be severally signed by the director, moderator, and treasurer of the district board.

454 Sec. 90. Statements-transmitted to state auditor. It shall be the duty of the proper officers of any school district in which any bonds may be voted under the authority of any law of this state, before the issuance of such bonds, to make a written statement of all proceedings relative to the vote upon the issuance of such bonds, and the notice of the election, manner, and time of giving notice, question of submission, results of a convass of the vote on the proposition on account of which it is proposed to issue such bonds together with a full statement of the assessed valuation, the number of children of school age residing in the district, and total bonded indebtedness of the school district voting such bonds. Such statement shall be certified to under oath by the proper school board of the district, and be transmitted with the bonds proposed to be issued, to the auditor of public accounts.

455 Sec. 91. Registration by auditor. The auditor shall examine the statement and bonds so submitted to him, and if he be satisfied that such bonds have been voted in conformity to law, and are in all respects in due form, he shall record the statement and register the bonds in his office, and no such bonds shall be issued or be valid unless they shall be so registered and have endorsed thereon a certificate of said auditor and the secretary of state, showing that such bonds are issued pursuant to law, the data filed in the office of said auditor being the basis of such certificate.

456 Sec. 92. Certificate of registry-payment.-Upon the registration of such bonds aforesaid, the auditor of public accounts shall certify the fact to the county clerk of the county in which the district is situated, and also to the proper officers of such school district, and whose duty it shall be to enter the same upon the proper records of such school district and taxes for the payment of such bonds and the interest thereof shall be levied in the manner provided by this article.

457 Sec. 93. When auditor return unregistered.—If the auditor of public accounts is not satisfied that such bonds have been issued according to law, he shall return the same to the proper officer with a certificate to that effect.

458 Sec. 94. Taxation for payment-sinking fund.—It shall be the duty of the county board in each county to levy annually upon all the taxable property in each school district in such county a tax sufficient to pay the interest accruing upon any bonds issued by such school district, and to provide a sinking fund for the final redemption of the same, such levy to be made with the annual levy of the county, and the taxes collected with other taxes, and when collected shall be, and remain in, the hands of the county treasurer a specific fund for the payment of the interest upon such bonds, and for the final payment of the same at maturity. It shall be the duty of the county clerk to furnish a copy of his register to the county treas

urer.

The county commissioners seem to be required to levy the necessary taxes for the payment of bonded indebtedness of a district without any action of the voters and officers of the district. From Maxwell's Practice, 398. Cited 22 Neb., 700.

459 Sec. 95. School district defined.-The phrase and

expression

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"school district," as used in the preceding section is hereby declared to mean, intend, and refer to the school district as it existed immediately prior to and at the time of the issuance of any bonds by said school district, including all lands and property and inhabitants comprised and contained in said school district at the time of the issuance of any bonds, and including all and any portions of said district subsequently separated from said district, whether by the formation of a new district or by any change of boundaries of said original district.

Cited 19 Neb., 485. 15 Id., 1.

460 Sec. 96. Excess of tax over payment due-investment.-Any money remaining in the hands of any treasurer, after the payment of interest due on any bonds which are a valid and legal obligation against the school district to which such money belongs, and the retention of a sufficient amount to pay the accruing interest upon such bonds for the current year, shall be retained as a sinking fund for the final redemption of such bonds, and shall be, by the treasurer, when so ordered by the school board, invested as follows, to-wit: First, in redeeming bonds of the school district issuing the same; second, in registered bonds of the county in which the district is situated; third, in the bonds of the state of Nebraska; fourth, in the bonds of the United States; Provided, That the bonds thus purchased shall in all cases be purchased at the lowest market price, after twenty days' notice by publication in at least one newspaper published and in general circulation at the capital city of the state; the cost of which advertising, at legal rates, shall be paid out of the sinking fund for the redemption of such bonds.

461 Sec. 97. Payment, where and how made. When the interest and principal, or interest only, of such registered bonds are payable in New York City, or elsewhere out of the state, payment shall be therein [then] made at the place so designated in such bond or coupon, or at the commercial [financial] agency of the state for such purposes, and in order that the funds may not be misapplied, the treasurer shall procure a draft for the amount, to be transmitted by drawing his check on some bank in this state, and both check and draft shall be so endorsed as to show upon what bond or bonds the funds shall be applied; or, at the request of the party holding or owning said bonds, payment may be made at the office of said treasurer.

462 Sec. 98. County treasurer liable. The tax and funds so collected shall be deemed pledged and appropriated to the payment of the interest and principal of the registered bonds herein provided for, until fully satisfied, and the treasurer shall be liable on his official bond for the faithful disbursements of all moneys so collected or received by him. After the principal and interest of such bonds shall have been fully paid, and all obligations for which such fund and taxes were raised have been discharged, the county clerk, upon the order of the county board, shall notify the county treasurer to transfer all such funds remaining in his hands to the credit of the district to which they belong.

463 Sec. 99. Cancellation of bonds-fees of county treasurer. When any registered bond shall mature, the same shall be paid off by the treasurer, at the place where the same shall be payable, out of any money in his hands or under his control for that purpose, and when so paid the same

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shall be endorsed by the treasurer on the face thereof, "Cancelled," together with the date of such payment; and thereupon be filed with the clerk, who shall enter satisfaction of such bonds upon the records of such school district. In case such bonds are payable out of the state, an allowance of one-fourth of one per cent shall be made to the treasurer for the expense attendant in making such payment to be deducted from any money in his hands remaining after payment of such matured bonds.

464 Sec. 100. When school bonds may be refunded. Any school district in the state of Nebraska which has heretofore voted and issued bonds to build, or to furnish a schoolhouse, or for any other purpose, and which bonds, or any part thereof, still remain unpaid, and remain and are a legal liability against such district, and bearing interest, is hereby authorized to issue coupon bonds at a rate of interest not exceeding six per centum per annum, to be substituted in place of, and exchanged for such bonds heretofore issued, whenever such school district can effect such substitution and exchange at a rate of not to exceed dollar for dollar. Provided, That all bonds issued under the provisions of this act must, on their face, contain a clause that the district issuing such bonds shall have the right to redeem such bonds at the expiration of five years from the date of the issuance thereof.

465 Sec. 101. Recitals in new bonds.-The new bond so issued shall have recited therein the object of its issue, the section of the law under which the issue was made, stating the issue to be in pursuance thereof, and shall also state the number, date, and amount of the bond or bonds for which it is substituted, and such new bond shall not be delivered until the surrender of the bond or bonds so designated.

466 Sec. 102. How issued and paid. The new bonds as issued shall not require a vote of the people to authorize such issue, and they shall be paid, and the levy made and tax collected for their payment in accordance with laws now governing the said bonds heretofore issued.

467 Sec. 103. High school redemption bonds. Any school district in any city of the first class in this state be and is hereby authorized and empowered to issue its coupon bonds of such demoninations as the board of education of such school district may deem best, and in an amount equal to the amount outstanding and unpaid of bonds bearing interest at the rate of ten per cent per annum, heretofore issued for the purpose of erecting a high school building by such school district, or by any school organization or board of regents which shall have been superseded by such school district.

468 Sec. 104. Conditions-description. Any bonds issued under the provisions of this act shall be for the payment, by the school district issuing the same, of the sum specified therein, made payable in the city of New York, in not more than twenty years nor less than five years from the time they are issued, with interest at a rate not exceeding seven per cent per annum, payable semi-annually; said bonds and coupons shall be required [signed] by the president of the board of education and countersigned by its secretary; Provided, That such bonds may be made redeemable at any time after five years, at the option of the board of education

469

Sec. 105. Disposition and avails of bonds.—It shall be the duty of the board of education of any school district issuing bonds under the