37-27-71 - Declaration of intention to borrow; issuance of notes; repayment.
§ 37-27-71. Declaration of intention to borrow; issuance of notes; repayment.
In any such case the board of trustees of such agricultural high school, by resolution or order, shall declare its intention to borrow any sum not in excess of the limitation fixed in Section 37-27-69, and shall recite in said resolution or order with reasonable particulars the purpose for which said funds are to be borrowed, and shall fix a schedule of amounts and dates of maturities by which such loans shall be repaid. Such resolution or order shall be duly recorded in the permanent minutes of the board of trustees of such institution. All such loans shall be fully repaid within six years, and they shall be evidenced by notes signed by the president and secretary of the board of trustees, which shall bear appropriate reference to the resolution or order of the board of trustees authorizing such loan. Such loan shall be retired in installments of not less than one-fifth the amount thereof on the first day of April of the year next succeeding the date of such loan and an equal amount on the same date of each and every year thereafter until said loan is paid.
Notes issued in evidence of such loans shall bear interest at a rate of not to exceed four per cent per annum, all interest payable semi-annually, and no such note shall be sold or negotiated by said institution for less than par and accrued interest. Funds received by such institution from the sale or negotiation of any such notes shall be paid into the treasury of the institution and disbursed as other funds thereof are disbursed, but for no other purpose than that authorized by Section 37-27-69. Such notes shall be lithographed, or engraved, and printed in two or more colors to prevent counterfeiting. Such notes shall bear the signature of the agricultural high school issuing the same, by the president and secretary of the board of trustees thereof. They shall be impressed with the seal of such institution. Interest coupons attached may bear the facsimile signatures of the aforesaid officers of the board of trustees. Before negotiation or sale and delivery thereof, said notes shall be registered in a book kept in the business office of such institution.
All indebtedness so created shall be paid from first funds derived from tax levies for maintenance and operation of said school coming into the treasury thereof and from fees, rentals and other charges as provided in Section 37-27-73. In order to secure the prompt payment of any and all indebtedness, whether of principal or interest incurred hereunder, a special fund shall be established in the depository of the funds of said institution, the style of which shall be, "debt retirement fund of ________ agricultural high school," and immediately upon receipt of the distribution of said first funds derived from such tax levies, annually hereafter in advance of the due date of each and every installment of said indebtedness, a sufficient sum from said taxes shall be paid into said special fund for the retirement of all principal and interest coming due within said year equal to the difference, if any, between such principal and interest and the amount collected from fees, rentals and other charges, as provided in Section 37-27-73. Said debt retirement fund shall be used for no other purpose than for the payment of principal and interest of indebtedness incurred hereunder.
Sources: Codes, 1942, § 6466-02; Laws, 1946, ch. 366, § 2.