security, it shall be the duty of the principal officer or officers of such municipality or incorporated district to prepare a statement, showing the actual indebtedness of such district, the amount of the last preceeding assessed valuation of the taxable property therein, the amount of debt to be incurred, the form, number and date of maturity of the obligations to be issued therefor, and he shall make and append thereto his oath or affirmation of the truth of the facts therein stated, and shall file the said statement in the office of the clerk of the court of quarter sessions of the proper county; upon failure to do so, he shall be guilty of a misdemeanor, and on conviction thereof shall be punished as provided in the first section of this Act. Certified copies of the record of such statement under the seal of said court shall be competent evidence in all the courts of this Commonwealth: Provided, That the bonds shall not be sold at less that their par value."

167 Under Article IX. Section 8, of the Constitution, an increase of indebtedness in excess of two per cent. of the assessed taxable property can only be authorized and created by an election. Such election should be held under the provisions of the Act of April 20, 1874, and the supplement thereto of April 13, 1897.

168 A vote of the electors of a borough authorizing the council to create an indebtedness for the express purpose of liquidating a floating debt which has been contracted in excess of the two per cent. limit without a vote of the electors, is such a recognition and ratification of the debt as makes it enforceable.

169 Where a full statement of the financial affairs of a borough shows that a proposed increase of the debt will exceed the constitutional limit, the borough will be enjoined from issuing the bonds for the increase. But the borough will not be enjoined from paying outstanding warrants held by persons not parties to the suit nor will contracts made with parties not on the record be declared void.

170 Section 3 of this act as amended by Act of 1891, P. L. 252 provides a method by which indebtedness may be in

rceased to the amount exceeding two per cent. and not exceeding eight per cent.

seven

171 Section 5 of this act provides: "The word 'indebtedness used in this Act shall be deemed, held and taken to include all and all manner of debt, as well as funded, of the said municipality; and the net amount of such indebtedness shall be ascertained by deducting from the gross amount thereof the moneys in the treasury, all outstanding solvent debts, and all revenues applicable within one year to the payment of the same.'

172 A contract for an annual sum, payable monthly, for lighting the streets for a limited time is not the incurring of a new indebtedness under the Constitution or the Act of 1874. 165 Pa. 479. 43 Pitts. L. J. 11. 30 Atl. 959.

173 A contract by a borough to pay for a portion of the cost of a sewer cannot be enforced if the result would be an increase of indebtedness to an amount exceeding two per centum upon the assessed value of property in the borough, without the assent of the electors. 198 Pa. 525.

174 Sections 6 and 7 of this Act provides for publication and for re-issue of bonds or certificates, none to be issued for a longer period than thirty years and provision to be made for the payment of principal and interest.

175 Act of 1875, P. L. 46.--“Section 6. The corporate authorities of every such municipality or district shall, at the end of their fiscal year, prepare and publish in at least two newspapers of said municipality or of the county of which the same is situated, if so may be printed therein, a statement showing in detail the actual indebtedness, the amount of the funded debt, the amount of the floating debt thereof, the valua tion of taxable property therein, the assets of the corporation, with the character and value thereof, and the date of maturity of the respective forms of funded debt thereof; and a neglect or failure so to do shall be a misdemeanor, punishable by fine not exceeding one thousand dollars."

176 Act of 1875, P. L. 55.-"Section 1. The burgess and town council of each of the several boroughs throughout this Commonwealth, be and are hereby authorized and empowered

to levy and collect in each and every year, an annual tax upon the assessed valuation of each of the several boroughs, in addition to the tax which they are already authorized by law to levy and collect, a special or additional tax not exceeding a per centum of eight mills on each dollar of such assessed valuations."

177 Act of 1891, P. L. 302, amends the foregoing act, as follows:-"The money so raised and collected shall be used, laid out, and expended for the following purposes and none other, namely:-"For the purpose of purchasing, erecting, contracting for, and maintaining such fire plugs or hydrants, posts, gas, kerosene, or electric lamps, and hose for fire engine companies as may be required to supply the said boroughs with a sufficient supply of water for the extinguishment of fires, cleansing the streets, and other public purposes, and with gas, kerosene oil, electric light or other illuminant for the purpose of properly lighting and illuminating the streets, lanes, alleys, and other public places in said boroughs, or paying for said gas, water, electric light, and hose for fire engines, and defraying the expenses in making all necessary attachments to gas, water and electric mains in said boroughs, together with all necessary expense in securing a full, sufficient and abundant supply of gas, water, electricity and hose for fire engines in and throughout said boroughs for said purposes, subject to all the further provisions of said Act."

178 Act of 1875 then continues as follows:--“Provided, however, before the burgess and town council of any or either of the said boroughs, unless heretofore otherwise authorized by law, shall be entitled to exercise any of the powers conferred by virtue of this Act, the same shall be approved of and accepted by the majority of the town council of such borough or boroughs, at any one of their regular and stated meetings, by resolution; which said resolution shall be entered upon their regular minutes; at the same meeting a time for holding a special election for a vote of the people shall be fixed and entered upon the regular minutes, whereupon it shall be the duty of the burgess of the said borough to notify

the constable or constables of the same, who are hereby authorized and required, within ten days after the receipt of such notice, to make proclamation in the same manner and for the same length of time as provided by law in case of borough and township elections, for a special election, to be held in the usual places of holding borough elections for said borough, said special election to be held by the board or boards of borough election officers; at which time and place the legal voters of said borough shall vote for the adoption or rejection of this Act by voting written or printed tickets, having on the outside the words 'gas and water tax', and on the inside 'for a gas and water tax,' or 'against a gas and water tax.' The majority of the legal votes so cast for or against a gas and water tax shall decide for or against the application of the said Act to the said borough; the expenses of said election to be paid out of the general fund of said borough: And provided also, that nothing in this Act shall be construed to authorize the levying or collection of such additional tax in boroughs where water or gas works have heretofore been erected by such boroughs."

179 This was supplemented by the Act of 1891, P. L. 302, as follows:-"Section 2. That where any of the boroughs of this Commonwealth have heretofore accepted the provisions of the Act of General Assembly to which this is a supplement, approved April sixteenth, one thousand eight hundred and seventy-five, and the special or additional tax has been duly authorized as provided by said Act, it shall be lawful for the burgess and town council of such boroughs to use, lay out, and expend any part of such funds so raised and collected as may be necessary for the purpose of lighting said boroughs with electric light."

Act of 1879, P. L. 153, provides for the redemption of bonds before maturity with the consent of the holders and to issue new bonds to secure such indebtedness at a lower rate of interest, the bonds so issued not to exceed the amount of the bonds so redeemed.

Act of 1881, P. L. 10, as amended by Act of 1899, P. L. 6.-"Section 1. That in all cases where any county,

city, borough, municipality or school district in this Commonwealth, has, by virtue of any general or special Act of Assembly, issued bonds or other interest bearing evidence of indebtedness, with or without interest coupons attached, to secure any indebtedness of any such county, city, borough, municipality or school district, which may have matured but remain unpaid and uncancelled, or are about to mature and become payable, or whenever any county, city, borough, municipality or school-district, shall have the option to redeem or pay any such bonds or interest bearing evidences of indebtedness of any county, city, borough, municipality or school district, which may not have matured or become redeemable, are willing to surrender the whole or any part of such issue of bonds or interest bearing evidences of indebtedness, it shall be lawful for any such county, city, borough, municipality or school district, for the purpose of redeeming or paying off any or all of the bonds or other interest-bearing evidences of indebtedness, payable, redeemable or offered for redemption, as aforesaid, to issue and sell either registered or coupon bonds, bearing interest at a rate not exceeding the rate the issue proposed to be refunded bears, and payable at any time not exceeding thirty years after the date thereof, and not exceeding in the aggregate the amount of the bonds of other evidences of indebtedness so redeemed or paid, and the said bonds so issued or sold, in accordance with the provisions of this Act, shall be exempt from taxation except for State purposes: Provided, however, That all moneys for the redemption of the issue of bonds proposed to be refunded, placed in the sinking fund if any, shall be first applied to the payment, as far as applicable, of the principal of such bonds, and the balance of such issue only shall be redeemed by the issue of new bonds.

182 Section 2 of the Act of 1881 was expressly repealed by the Act of 1899."

183 Act of 1895, P. L. 250.-"Section 1. That any borough may redeem its existing bonded indebtedness as the same becomes payable, whether by maturity or under an option giving the borough the right to redeem before maturity,