such sinking-fund was created. Third, no sinking-fund shall be invested under this act in the bonds of any county, township, city or school district where the bonded and floating indebtedness thereof shall exceed five per cent of its total assessed valuation as shown by the last assessment preceding such investment. Fourth, any officer or officers investing sinking-funds under this act shall be authorized to pay such premium as may be necessary to secure the bonds desired in the open market; provided, that no premium shall be paid for any bonds purchased under this act which shall have the effect of reducing the annual income from such investment to less. than three per cent.

SEC. 12. Penalty for Issuing Illegally. [7636.] If any schooldistrict officer, whose duty it is under the provisions of this act to issue or assist in any manner in the issuance of the bonds of any school district, shall prepare, sign or deliver, or aid, counsel or assist in preparing, signing or delivering, or shall cause to be prepared, signed, or delivered, any bond or bonds of any school district, at any time before such bond or bonds are authorized by this act to be prepared, signed or delivered, such officer shall be guilty of a felony, and upon conviction shall be fined in a sum of not less than $500 nor more than $5000, or by imprisonment in the penitentiary for not less than one year and not longer than five years, or by both such fine and imprisonment. And if the board of directors of any school district, or any member thereof, shall use or dispose of any school-district bonds, or the money accruing from the sale of such bonds, in any other manner or for any other purpose than that for which the same was created or intended, he or they shall be liable to be punished by fine in any sum not less than $1000, by information or indictment in any court of competent jurisdiction, or by imprisonment in the county jail not more than six months, or by both such fine and imprisonment. (Laws 1879, ch. 49, sec. 6.)

SEC. 13. Final Disposition. [7637.] On the payment of the bonds or coupons of any school district, the county treasurer shall immediately cancel the same, and indorse thereon the date of payment; and at the time of his settlements with the several school-district treasurers of his county he shall deliver to each the canceled bonds and coupons of his district, and take a receipt therefor, and such canceled bonds and coupons shall be destroyed by the district treasurer in the presence of all the officers of the district, a complete record of their destruction being made by the district clerk. On the last Saturday of July of each year, each and every county treasurer shall make to the clerk of his county a detailed report of all the bonds and coupons canceled during the year, and the date of payment of the same, accompanied by the receipts given by district treasurers therefor; and the county

clerk shall immediately thereafter cancel the registry of all such bonds and coupons by indorsing thereon the date of payment of each. (Laws 1879, ch. 49, sec. 7.)

NOTE. All school bonds must first be offered to the School-fund Commission, and the commission has the option to purchase same at not more than par. See section 518 of this book.

SEC. 14. Payment before Maturity. [7716.] If at any time any board of education, school district, township, county or city of any class shall have accumulated in the treasury sinking-fund sufficient to pay in full any bond or bonds issued by such board of education, school district, township, county or city of any class before the maturity, the state permanent school fund, State Normal School fund, or the University permanent school fund, or Agricultural College endowment fund being the holders thereof, such board of education, school district, township, county or city of any class may pay the same to the state treasurer at the time any interest coupon is due, and take up such bond or bonds, and the state treasurer is hereby authorized to receive the same and cancel such bond or bonds and the unmatured coupons attached thereto, and deliver the same so canceled to the officer paying the amount; provided, that the state treasurer, before delivering said bond or bonds, shall present the same to the auditor of the state, together with a statement showing the amount of coupons upon which no moneys have been received, and upon examining such statement, and comparing with the coupons attached to such bond or bonds, the auditor shall credit the treasurer with the amounts shown to be canceled before maturity. (Laws 1905, ch. 382, sec. 1.)

SEC. 15. Payment before Maturity-Additional Provisions. [605.] Whenever any county, city, township or school district in this state shall owe any outstanding and unmatured bonds, and at the same time shall have in its treasury any sinkingfunds raised to pay such bonds, the proper officers of such county, city, township or school district may use such funds to purchase or pay any of such bonds and cancel the same, whenever they can be so purchased or paid at or below par, or at such reasonable price above par as may be requested by a majority of the resident taxpayers of such county, city, township, or school district, and which request may be made by a written petition to that effect, directed to such officers. (Laws 1905, ch. 72, sec. 1.)

SEC. 16. Payable at State Treasury. [622.] From and after the taking effect of this act all bonds issued by the state, or any county, township, municipality, or school district, and the interest coupons thereon, shall be made payable at the office of the state treasurer, in the city of Topeka, in the state of Kansas. (Laws 1908, ch. 58, sec. 2.)

SEC. 17. State Treasurer. [7705.] At least thirty days before the maturity of any bonds or coupons belonging to the

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permanent school fund or sinking-fund, it shall be the duty of the state treasurer to furnish a detailed statement to each county or city treasurer, or the treasurer of any board of education, of the amount due from them respectively, describing in such statement the number of the district or the name of the city, the amount of interest due, and the amount of principal due, if any. (Laws 1877, ch. 174, sec. 2.)

SEC. 18. County and City Treasurers. [7706.] It shall be the duty of each county and city treasurer, and the treasurers of boards of education, to remit to the state treasurer, at least ten days before the maturity of any bonds or coupons, all moneys collected by them for the redemption of such bonds and coupons, and all express charges and postage shall be a proper charge against such city or school district and shall be allowed to such treasurer on settlement. (Laws 1877, ch. 174, sec. 3.)

SEC. 19. Cancellation. [7707.] On receipt of any funds by the state treasurer, he shall immediately cancel all coupons or bonds for which funds are remitted, and return such coupons or bonds to the office of the treasurer remitting the same. (Laws 1877, ch. 174, sec. 4.)

SEC. 20. Penalty. [7708.] Any county or city treasurer, or treasurer of any board of education, who shall neglect or refuse to perform the duties required of him by this act, shall be liable to the state in a sum equal to double the amount of such bonds or coupons remaining unpaid by reason of such neglect or refusal, which may be recovered in a suit at law against such treasurer and his bondsmen; and it is hereby made the duty of the county attorney of the proper county, upon the request of the attorney-general, to prosecute all such suits. (Laws 1877, ch. 174, sec. 5.)

SECTION 21. Bonded Indebtedness may be Refunded. [Laws 1911, ch. 67, sec. 1.] That section 588 of the General Statutes of Kansas of 1909 be and the said section is hereby amended to read as follows: Sec. 588. Every county, every city of the first, second or third class, the board of education. of any city, every township and every school district is hereby authorized and empowered to compromise and refund its

bonded indebtedness, including coupons and judgments thereon, upon such terms as can be agreed upon, and to issue new bonds with semiannual interest coupons attached in payment for any sums so compromised; which bonds shall be sold at not less than par, shall not be for a longer period than thirty years, shall not exceed in amount the actual amount of outstanding indebtedness, inclusive of attached coupons, and shall not draw a greater interest than six per cent per annum. No indebtedness of any kind shall be funded or refunded under the provisions of this act except bonded indebtedness actually existing at the time of the passage of this act or hereafter legally created; and nothing herein contained shall be construed to validate or invalidate any existing bonded indebtedness; provided, that whenever any of the property of any city of the first class having a population of 40,000 and over is subject to an indebtedness consisting of mortgage bonds, and such city of the first class has paid in cash more than fifty per cent of the purchase price of such property, then such mortgage bonds shall be deemed to be bonded indebtedness of such city within the meaning of this act.

NOTE.-Maturing interest coupons may be included, but unearned interest coupons should not be included. See Kelly v. Cole, 63 Kan. 386.

SEC. 22. Bonds Shall be Signed by Whom. [589.] Bonds issued under this act by any county shall be signed by the chairman of the board of county commissioners, and attested by the county clerk, under the seal of the county. Bonds issued by any city shall be signed by the mayor, and attested by the city clerk, under the seal of the city. Bonds issued by any township shall be signed by the trustee, attested by the township clerk, and countersigned by the township treasurer. Bonds issued by the board of education of any city shall be signed by the president, and attested by the clerk of the board, under the seal of such board. Bonds issued by any school district shall be signed by the director, attested by the clerk, and countersigned by the treasurer of the school-district board, and the coupons shall be signed by the mayor, president, director, trustee, or chairman of the board of county commissioners, and the clerks respectively. Such bonds may be in any denominations, from $100 to $1000, and made payable at such place as may be designated upon the face thereof, and they shall contain a recital that they are issued under this act. (Laws 1879, ch. 50, sec. 2.)

SEC. 23. How Issued and When. [590.] When a compromise has been agreed upon, it shall be the duty of the proper officers to issue such bonds at the rate agreed upon to the holder of such indebtedness, in the manner prescribed in this act; but no bonds shall be issued under this act until the proper evidence of the indebtedness for which the same are to be issued shall be delivered up for cancelation; provided, that no bonded in

debtedness shall be refunded by the board of county commissioners, or any mayor and city council, or any board of trustees of any township, or any school-district board, or board of education, under this act, except such as have been issued and outstanding at least two years at the time of such refunding; and provided further, that except for the refunding of outstanding debt, including outstanding bonds and matured coupons thereof, or judgment thereon, no bonds of any class or description shall hereafter be issued where the total bonded indebtedness of such county or township would thereby exceed one per cent1o of the assessment for taxation, as shown by the last finding and determination by the proper board of equalization, or of such city, school district or board of education exceed one and one-fifth per cent of such assessment; but this restriction shall not apply to cities of the first class. (Laws 1909, ch. 62, sec. 2.)

SEC. 24. Bonds Issued for Payment of Outstanding Warrants. [Laws 1911, ch. 264, sec. 1.] That all school districts in the state of Kansas prior to the passage of this act having outstanding warrants representing valid indebtedness of the district be and they are hereby empowered and authorized, by and through their duly elected, constituted and appointed boards of directors, or duly elected, qualified and acting boards of education, to compromise and refund such indebtedness upon such terms as can be agreed upon, and to issue the bonds of said district in any amount not to exceed the actual amount of said warrant indebtedness, nor to exceed five per cent of the assessed valuation of all the taxable property in said district as ascertained by the assessment of the year 1910; said bonds may be issued in any amount not less than one hundred dollars nor more than five hundred dollars, with semiannual interest coupons attached, and shall be issued in all respects in conformity to and in accordance with an act entitled "An act to enable counties, municipal corporations, boards of education of any city, and school districts to refund their indebtedness," being general sections 588 to 598, inclusive, of the General Statutes of 1909; provided, that no limitation expressed in any other act shall apply to bonds issued under this act.

SEC. 25. Bonds Registered. [591.] The clerk of every county, city, township, school district and board of education issuing bonds under this act shall register the same in his office. Such bonds shall also, in every case, be registered by the county clerk, showing the date, number and amount thereof, rate of interest, number of coupons and amount of each, to whom payable, where payable, date of maturity, and, if optional, under what conditions; and all bonds refunded under this act shall have the words "Paid in full"

10. Bonds cannot be issued to exceed one and one-half per cent for all purposes, except as provided in sections 4 to 7. See section 1.