The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

authorized

to be

SECTION 1. By virtue of the power granted to the Legislature Loan by the seventh section of article seventeen of the Constitution of the State of Nevada, and for the purpose of paying the principal negotiated. and interest of the territorial proportion of the State Loan of February sixth, one thousand eight hundred and sixty-seven, heretofore assumed by the State, on account of territorial indebtedness and interest, a loan, not exceeding the sum of three hundred and eighty thousand dollars, is hereby authorized to be negotiated on the faith and credit of the State, to be paid within fifteen years from the date of negotiation of said loan, to bear a rate of interest not exceeding ten (10) per cent. per annum, from the date of the bonds, payable semi-annually, at such places in San Francisco and in New York City as may be designated by the Treasurer of this State, or at this office of the State Treasurer in Nevada, at the option of the party or parties to whom such bonds are issued.

SEC. 2. The State Controller shall cause the bonds to be pre- Bonds, how pared that are to be issued for the payment of the loan authorized prepared. by this Act; which bonds shall be signed by the Governor, countersigned by the Controller, endorsed by the Treasurer, and authenticated with the great seal of the State. Coupons for Coupons. interest shall be attached to each bond, so that the coupons may be removed without injury or mutilation to the bond. Said coupons, consecutively numbered, shall be signed by the State Treasurer.

sioners for

SEC. 3. The Treasurer and Controller of State, or either of Commisthem, by and with the advice and consent of the other, are hereby sale of made Commissioners on the part of the State, to negotiate the bonds. sale of the bonds provided herein to be issued; provided, no bonds shall be issued or negotiated until on or after the first day of January, one thousand eight hundred and seventy-two, except in exchange for bonds, interest, or other evidences of indebtedness against the State, as provided for in section nine (9) of this Act.

and Con

rate record.

SEC. 4. It shall be the duty of the Treasurer and Controller Treasurer of State each to keep a separate record of all such bonds as may troller to be issued, showing the number, date, amount and rate of in- keep sepaterest of each bond, and to whom issued. No bond shall be issued for a less sum than one hundred dollars. No bonds issued Sale of under the provisions of this Act shall be sold for any currency except gold and silver coin of the United States, nor at less than their par value; and for the payment of said bonds, both principal and interest in gold and silver coin of the United States, the faith and credit of the State is solemnly pledged.

bonds.

interest and sinking

SEC. 5. After the negotiation and sale of the bonds provided Territorial for in this Act, it shall be the duty of the State Treasurer to set apart a fund, for the purpose of paying the principal and interest of fund. said bonds, as the same may become due; which shall be called the "Territorial Interest and Sinking Fund." There shall be Tax to be levied and collected for the fiscal year commencing January first, levied. one thousand eight hundred and seventy-two, and annually there

Revenue

payment of

bonds.

after, until all the bonds issued and sold under this Act shall have been fully paid, both principal and interest, an ad valorem tax of twenty-five (25) cents upon each one hundred dollars of taxable property in the State. The revenue derived from said tax shall be paid into the "Territorial Interest and Sinking pledged for Fund," and is hereby set apart, apportioned and pledged, as well as the faith and credit of the State of Nevada, for and to the payment, both principal and interest, of all bonds of said State, issued in pursuance of the provisions of this Act. No part of the revenue derived from the tax herein before levied shall be paid out, or in any manner diverted from the State Treasury for any other purpose than paying or retiring the bonds, both principal and interest, issued pursuant to the provisions of this Act, except as hereinafter provided; provided, that in the event all of the bonds herein authorized to be issued are not sold or disposed of, then it shall be the duty of the Treasurer, immediately after each payment of the semi-annual interest on all outstanding bonds, to transfer to the general fund so much of the money derived from the tax aforesaid remaining in his hands as shall be the due proportion of the whole of said tax on bonds unsold or undisposed of under the provisions of this Act; provided further, that proceeds of no portion of any tax whatsoever levied on the proceeds of the mines, shall be construed to form any part of the revenue appropriated and pledged by this section for the redemption of the said bonds, but shall be paid into the General Fund for general State purposes.

Proviso.

Tax on

mines not

pledged.

Arrangements for payment of interest.

Surplus remaining

SEC. 6. It shall be the duty of the said Commissioners to make definite arrangements for the payment of the interest on the said bonds when the same shall fall due, at least sixty (60) days before the time of payment; and, in the event that said interest and sinking fund, as in this Act provided is insufficient, the said Treasurer shall draw on the general fund for such purpose; and, in the event that said funds prove inadequate, the Treasurer, by and with the consent of the Governor and State Controller, or either of them, is authorized and required to make such contracts and arrangements as may be necessary for the payment of said interest, and the protection of the faith of the State.

SEC. 7. Whenever, at the time of paying the semi-annual inon payment terest on the bonds provided to be issued by this Act, there shall of interest, remain a surplus after the payment of such interest, over and disposed of. above the amount which it may be necessary to reserve for the

how

payment of the next ensuing semi-annual interest, of five thousand (5,000) dollars, or more, in the fund created by the fifth (5th) section of this Act, it shall be the duty of the State Treasurer to advertise in one or more daily newspapers published in this State, and in the cities of San Francisco and New York, for sealed proposals for the surrender of bonds issued under this Act. He shall state in such advertisement the amount of money on hand applicable to the redemption of such bonds, and he shall accept such proposals, at rates not exceeding par value, as may redeem the greatest amount of bonds, until the cash on hand for Surplus to redemption is exhausted. If there shall be no bids for the surrender of bonds presented to, or received by the State Treasurer, as provided in this section, it shall be his duty, by and with the advice and consent of the Controller or Governor, to invest the

be invested, when.

surplus on hand in said interest and sinking fund, for the redemption of said bonds, in the interest-bearing gold bonds of the United States, which bonds, with the interest thereon, shall remain in said interest and sinking fund until it becomes necessary to dispose of them to meet the principal or interest of the bonds provided to be issued by this Act.

amount of

etc., to be

SEC. 8. The Treasurer and Controller of State, shall, on or Report of before the first day of January of each year, report to the Gov- bonds reernor, a full, true and correct statement of the amount of bonds deemed, redeemed, the amount of interest paid, the amount of interest- made. bearing gold bonds of the United States purchased, and the amount of money in the treasury belonging to the fund created by this Act, and the Governor shall report the same in detail to each biennial session of the Legislature.

may ex

other in

SEC. 9. Nothing contained in this Act shall be so construed as Treasurer to prevent the State Treasurer from exchanging the bonds issued change by virtue of this Act, for any of the outstanding bonds and in- bonds for terest, or other evidences of indebtedness provided to be paid or debtedness, retired by section one of this Act, but such exchange may be made etc. at their par value; and he shall use the proceeds obtained from the sale of bonds issued under the provisions of this Act only for the purpose of paying the bonds and interest thereon, provided to be paid by section one of this Act.

to advertise

SEC. 10. After the bonds authorized to be issued under the Treasurer provisions of this Act shall fall due, and there shall be in the readiness to State treasury money applicable to the payment of such bonds, pay bonds. the State Treasurer shall advertise in a newspaper published in this State, and in the cities of New York and San Francisco, for the period of thirty days, his readiness to redeem and pay said bonds, giving the number and date of each bond to be so redeemed. The Treasurer shall keep on hand the principal and in- When interterest on any advertised bond, and no bond shall bear interest after the expiration of thirty days from the time the Treasurer advertises his readiness to pay the same.

est to cease.

tion.

SEC. 11. The sum of three thousand (3000) dollars, or so much Appropriathereof as may be necessary, is hereby appropriated out of the general fund, not otherwise appropriated, to defray the expenses of the procurement and negotiation of the required bonds, and placing the proceeds thereof in the State Treasury.

Loan

authorized to be

CHAP. XXXIV.—An Act to authorize a State Loan, for the purpose of paying the State proportion of the Bonds issued under the Act, approved February sixth, one thousand eight hundred and sixty-seven; and to Fund the Floating Debt, and place the State upon a permanent cash basis.

[Approved February 27, 1871.]

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

SECTION 1. By virtue of the power granted to the Legislature by the third section of article nine of the constitution of the State negotiated. of Nevada, and for the purpose of paying the State proportion of the bonds issued under the Act, approved February sixth, one thousand eight hundred and sixty-seven, amounting to the sum of one hundred and twenty thousand (120,000) dollars, and to provide for the payment of registered warrants, and to place the State upon a permanent cash basis, a loan of two hundred and eighty thousand (280,000) dollars, is hereby authorized to be negotiated, on the faith and credit of the State, to be paid within ten years from the date of negotiation of said loan, to bear a rate of interest not exceeding ten (10) per cent. per annum, from the date of the issuance of the bonds, payable semi-annually at such places in San Francisco and in New York City, as may be designated by the Treasurer of this State, or at the office of the State Treasurer in Nevada, at the option of the party or parties to whom such bonds are issued.

Bonds, how

SEC. 2. The State Controller shall cause the bonds to be preprepared. pared that are to be used, for the payment of the loan authorized by this Act; which bonds shall be signed by the Governor, countersigned by the Controller, endorsed by the Treasurer, and authenticated with the great seal of the State. Coupons for interest shall be attached to each bond, so that the coupons may be removed without injury or mutilation to the bond. Said coupons consecutively numbered, shall be signed by the State Treas

Coupons.

Sale of bonds.

Commis

sale of

bonds.

Loan.

urer.

SEC. 3. No bonds issued under the provisions of this Act, shall be sold for any currency except gold and silver coin of the United States, nor at less than their par value; and for the payment of said bonds, both principal and interest, in gold and silver coin of the United States, the faith and credit of the State is solemnly pledged.

SEC. 4. The Treasurer and Controller are hereby made Comsiouers for missioners on the part of the State, and they or either of them, with the advice and consent of the other, are hereby authorized to negotiate the sale of the bonds provided herein to be issued. It shall be the duty of said Commissioners to negotiate a loan not exceeding one hundred and sixty thousand (160,000) dollars, to pay the registered warrants, and to place the State on a permanent cash basis, at as early a day as practicable; provided, the State Treasurer may exchange any of the bonds issued under this Act for outstanding registered warrants, at their par value, in sums not less than one hundred (100) dollars. It shall also be

Proviso.

the duty of said Commissioners on or after the first day of Jan- Loan. uary, one thousand eight hundred and seventy-two, to negotiate a loan, not exceeding one hundred and twenty thousand (120,000) dollars to pay the State proportion of the bonds issued under the Act of February sixth, one thousand eight hundred and sixtyseven, at their maturity; provided, the Treasurer may, at any time, Proviso. exchange any of the bonds issued under this Act, for any of the bonds named in section one, at their par value, in sums not less than one thousand (1,000) dollars.

interest and

SEC. 5. After the negotiation and sale of the bonds provided State for in this Act, it shall be the duty of the State Treasurer to set sinking apart a fund, for the purpose of paying the principal and interest fund. of said bonds, when they shall become due; which shall be called the State Interest and Sinking Fund. There shall be levied and collected for the first fiscal year, commencing January first, one thousand eight hundred and seventy-one, an ad valorem tax, of twelve and one half cents upon each one hundred dollars of the taxable property in this State, to provide for the interest on the one hundred and sixty thousand (160,000) dollars, and there shall be levied and collected, for the fiscal year commencing January first, one thousand eight hundred and seventy-two, and annually thereafter, until all the bonds issued and sold under the provisions of this Act, shall have been fully paid, both principal and interest, an ad valorem tax of twenty-five (25) cents upon each one hundred dollars of the taxable property in this State. The revenue derived from said tax shall be paid into the State Interest and Sinking Fund, and is hereby set apart, appropriated and pledged, as well as the faith and credit of the State of Nevada, for and to the payment, both principal and interest, of all bonds of said State, issued in pursuance of the provisions of this Act. No part Revenue of the revenue derived from the tax herein levied, shall be paid not to b out, or in any manner diverted from the State Treasury for any from other purpose than paying or retiring the bonds, both principal payment of and interest, issued pursuant to the provisions of this Act, except and interest as hereinafter provided; provided, that no portion of any tax Proviso. whatsoever, levied on the proceeds of the mines, shall be construed to form any part of the revenue appropriated and pledged by this section for the redemption of the said bonds, but shall be paid into the general fund, for general State purposes.

be

principal

ments for

payment of

SEC. 6. It shall be the duty of the Treasurer and Controller Arrangeof State to make definite arrangements for the payment of the interest on the said bonds when the same shall become due, at interest. least sixty days before the time of payment, and in the event that said interest and sinking fund, as in this Act provided, is insufficient, the said Treasurer and Controller shall draw on the general fund for such purpose; and in the event that said funds prove inadequate, the said Commissioners are hereby authorized and required to make such contracts and arrangements as may be necessary for the payment of said interest and the protection of the faith of the State.

remaining

SEC. 7. Whenever, at the time of paying the semi-annual Surplus interest on the bonds provided to be issued by this Act, there on payment shall remain a surplus after the payment of such interest, over of interest, and above the amount which it may be necessary to reserve for disposed of. the payment of the next semi-annual interest, of five thousand

how