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provisions of the two next preceding sections to negotiate such bonds, but for no less than the par value thereof, and all the proceeds arising from the sale thereof shall be paid to the treasurer of the board of education, and shail be applied solely to the redemption and purchase of the bonds heretofore issued by such school district, or school organization superseded by it, for the purpose of erecting a high school building, and bearing interest at the rate of ten per cent per annum; Provided, none of the said bonds heretofore issued shall be redeemed or purchased for more than the face value thereof.

470 Sec. 106. How issued and paid.—The bonds issued under the provisions of the three next preceding sections shall not require a vote of the people to authorize their issue, and they shall be paid, and taxes shall be levied and collected for their payment in the same manner as is now provided by law for the payment of bonds, heretofore issued by such school districts.

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Chapter 68.

ARTICLE XVII.

WARRANTS.

6642 Sec. 354. Warrants paid in order of presentation.-All warrants upon the state treasurer, the treasurer of any county, city school district, or other municipal corporation shall be paid in the order of their presentation therefor.

If there is no money on hand with which to pay warrants when presented, the warrants shall be registered in the order of their presentation, and as soon as there are funds in the hands of the district treasurer it becomes his duty to notify the holder of the registered warrants and to pay them in the order of their registration, regardless of when the tax was levied. It has been held by the supreme court of Nebraska that the statute of limitations runs. for or against school districts the same as for or against individuals. 22 Neb., 205.

Where school districts, having registered warrants outstanding, consolidate into one district, said warrants should be paid in the order of their registration, as shown by the date of the endorsement thereon, without regard to which of the original districts issued the warrants.

School districts have no powers except those conferred by statute or necessarily implied therefrom. Their ability to pay debts is restricted by laws authorizing them to levy taxes, within fixed limits only, and by the funds arising from such levies, from fines and from other lawful sources. For the current expenses of running their schools they cannot incur indebtedness greater in amount than their revenue from all sources, and where a contract for such expenses provides for payment of a sum in excess thereof it is, to that extent, void. It does not follow, however, that taxes must actually be paid into the treasury before they can be made a basis for incurring debts. The supreme court has recently said: "Taxes levied at the annual school meeting held just prior to the commencement of the school year constitute a fund against which warrants may be drawn." Zimmerman vs. State, 83 N. W., 919.

6643 Sec. 355. Warrant register.—The treasurer of this state, and the treasurer of every county, city, school district, or other municipal corporation, shall keep a warrant register, which register shall show, in columns arranged for that purpose, the number, date, and amount of each warrant presented and registered, as hereinafter provided, the particular fund upon which the same is drawn, the date of presentation, the name and address of the person in whose name the same is registered, the date of payment, the amount of interest and the total amount paid thereon, with the date when notice to the person in whose name such warrant is registered, is mailed as hereinafter provided.

6644 Sec. 356. How warrants are to be registered. Whenever a warrant is presented for payment to any such treasurer and there are not sufficient moneys on hand to the credit of the proper fund to pay the same, it shall be the duty of every such treasurer to enter such warrant in his warrant register for payment in the order of its presentation, and upon every warrant so presented and registered he shall indorse, "registered for payment," with the date of registration, and shall sign such indorsement: Provided, however, whenever the state treasurer is authorized by the board of educational lands and funds to invest the educational trust funds of the state in

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state warrants, he shall have the right and it is made his duty to pay the owner or holder of any state warrant legally drawn upon its presentation and surrender the amount thereof from the moneys under his control belonging to such trust funds, unless there be sufficient money on hand belonging to the fund upon which such warrant is drawn out of which to pay the same. When any such warrant or warrants are taken up by the treasurer as aforesaid, he shall register the same and they shall be taken and considered in all respects as warrants purchased by the treasurer with and for the use and benefit of the trust fund, and the same shall draw interest at the rate now provided by law for registered state warrants until such time as there shall be sufficient moneys in the treasury to the credit of the fund against which the warrant or warrants are drawn to pay the same. If the treasurer is unable to pay for any such warrants the full amount thereof when presented to him, either from want of moneys to the credit of the funds against which such warrants are drawn, or because not authorized by the board of educational lands and funds to invest such trust funds in state warrants, or beacuse there are not sufficient moneys in such trust funds to pay the same, then the owner or holder of the warrants shall be entitled to have same registered, and not otherwise.

6645 Sec. 357. Duty of treasurer. It shall be the duty of every such treasurer to put aside in a separate and sealed package, the money for the payment of each registered warrant, in the order of its registration, as soon as money sufficient for the payment of such warrant is received to the credit of the particular fund upon which the same is drawn. Such package shall be endorsed with the number and description of such warrant, and the name and address of the person in whose name the same is registered, and interest upon such warrant shall thereupon cease, and such treasurer shall by mail immediately notify the person in whose name the same is registered, and shall endorse the date of the mailing of such notice upon such sealed package.

6648 Sec. 360. Receipts by city treasurer. The treasurer of every city or incorporated town, shall make duplicate receipts for all sums which shall be paid into his office, which receipts shall show the source from which such funds are derived, and shall by distinct lines and columns show the amount received to the credit of each separate fund, and whether the same was paid in cash, in warrants, or otherwise; one of which duplicates the treasurer shall deliver to the person making such payment, and the duplicate thereof he shall retain in his office.

6649 Sec. 361. How treasurer to keep books. Every such treasurer shall daily, as moneys are received, foot the several columns of his cash book, and of his register, and carry the amounts forward, and at the close of each year, in case the amount of money received by such treasurer is insufficient to pay the warrants registered, he shall close the account for that year in such register, and shall carry forward the excess.

6650 Sec. 362. Penalty for neglect of duty. Any such treasurer who shall fail regularly to enter upon his cash book the amounts so received and receipted for, or, who shall fail to keep his cash book footed from day to day, as required by this article, for the space of three days, shall forfeit for each offense the sum of one hundred dollars, to be recovered in a

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civil action on his official bond by any person holding a warrant drawn on such treasurer, one-half to the person bringing such action, and one-half to the school fund of the county in which such action is brought.

6651 Sec. 363. Inspection of books.-The cash book, register, and retained receipts of every such treasurer, shall at all times be open to the inspection of any person in whose name any warrants are registered and unpaid.

treasurer who

6652 Sec. 364. Failure to notify-penalty.—Any shall for the period of five days after moneys in amount sufficient to pay any registered warrant in its order have been received, fail to mail notice thereof to the person registering such warrant, shall forfeit to such person ten per cent on the amount of such warrant, and ten per cent additional for every thirty days thereafter during which such failure shall continue.

6653 Sec. 365. Failure to register or pay-penalty.-Any such treasurer, who shall fail to register any warrant, in the order of its presentation therefor, or shall fail to pay the same in the order of its registration, shall be liable on his official bond to each and every person, the payment of whose warrant or warrants is thereby postponed, in the sum of five hundred dollars, to be recovered in a civil action, one-half of which shall go to the person bringing such action, and one-half to the school fund of the county in which such action is brought.

6654 Sec. 366. Duplicate for lost warrant. Whenever it shall be made to appear to the satisfaction of any officer, authorized by law to issue warrants, that any warrant issued by him has been lost and destroyed, such officer shall have authority to issue a duplicate thereof, numbered the same as the original, with the word "duplicate" written or printed in red ink across the face thereof; Provided, That no such duplicate warrant shall be issued until the party applying for the same shall make affidavit that he was the owner of the original warrant, and shall also file with such officer an indemnity bond with good and sufficient security conditioned to refund any money by him or his assigns received on such duplicate in case of presentation and payment of the original by the treasurer upon whom the same is drawn, whether upon a genuine endorsement thereon or otherwise.

ARTICLE XVIII.

INVESTMENT OF PUBLIC FUNDS.

6670 Sec. 382. Sinking funds-investments in warrants.-When any warrant issued by the proper authorities of any county, township, city, town, or school district shall have been presented for payment and the same is not paid for want of funds, it shall be lawful for, and is hereby made the duty of such treasurer upon and under the direction of the county board of such county, to purchase and take up such registered warrants with sinking

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funds in his hands and to hold such warrants for the benefit of the fund so invested, until the same is paid in its order as provided by law.

6671 Sec. 383. Same-county board. The county board of any county in this state is hereby authorized to provide for the purchase and taking up of registered warrants, as provided for in the next preceding section, out of the sinking funds in the hands of the county treasurer, whenever in the judgment of such county board the same shall be safe and expedient. Before so investing any sinking funds the county board shall fix and prescribe, and enter of record general directions and authority to such county treasurer, as to the funds to be so invested, specifying the funds to be so invested, the kind and amount of warrants to be so invested in, and in so doing shall, as far as the same may be practicable, continue to invest the sinking fund which shall last become due and payable; Provided, not more than fifty per cent of the money so collected on any given sinking fund shall be so invested in warrants at any given time, and provided further, when practicable the warrants drawn by any given authority shall be provided for as above from the sinking funds belonging to the organization issuing such warrant, and of such provisions the county board shall give the treasurer notice.

6672 Sec. 384. Same-cities.-The city council of any incorporated city of this state may make similar provision for the taking up of warrants out of the sinking funds in the hands of the city treasurer of such city, provided, the warrants to be so purchased shall be limited to those of its own issue, or to those of any school district situated mainly or wholly within the boundaries of such city, and upon notice given of such direction, it shall be the duty of such treasurer to so take up such warrants.

6673 Sec. 385. Same-school districts.-The school board of any school district in this state is hereby authorized to direct the legal custodian of any of its sinking funds, to invest such sinking funds in the warrants of such school district, in like manner as herein before provided for, provided, that the investment of such school district sinking fund under this section shall be limited to the warrants of its own issue, and upon such direction of the school board, the custodian of such sinking funds shall preceed to take up the warrants of such school district as herein provided for.