91.130. Proposition to sell to be in writing--publication--deed, how made. - Missouri Statutes

Proposition to sell to be in writing--publication--deed, how made.

91.130. 1. The proposition so submitted by the said person,firm or corporation shall be in writing, and shall state theprice at which the city may acquire the property, and shallcontain an agreement to accept in payment of such price the bondsprovided for by sections 91.090 to 91.300, which bonds shall notcreate any personal or general liability on the part of the city,or the persons signing the same, for the payment of the bonds,nor shall the city be liable to pay for the city waterworkssystem other than by the execution and delivery of bonds asprovided in said sections. In case the waterworks system isowned by a corporation, the proposition submitted by it to thecity shall be authorized by the board of directors of thecorporation, and also shall have the consent of a majority of thestockholders of the corporation owning the waterworks system anda majority of the bondholders thereof, which consent shall beobtained at a meeting of the stockholders of the corporation inpursuance to notice published for three weeks in a newspaperpublished in the city where the corporation is located, signed bythe president or the secretary of the corporation, stating theobject of the meeting; and by a written notice addressed to eachstockholder at his usual place of residence, postage prepaid anddeposited in the United States post office, ten days before themeeting.

2. The deed to said waterworks property shall be placed inescrow when the proposition is made to the city, and the person,firm or corporation submitting such proposition shall, at thetime of submitting the same, deposit with the city clerk a sumsufficient to defray the expenses of the election held to vote onsuch proposition. The city shall be the grantee in said deed,which deed shall convey to it the title to said property, subjectto the payment of the bonds provided for in said sections, givenfor the purchase price thereof, and the deed may contain thefollowing reservation, to wit:

"The power is reserved in the members of the board ofwaterworks commissioners and their successors in office to conveythe property hereby conveyed--in case of default in the paymentof the bonds or interest coupons provided for in sections 91.090to 91.300, RSMo, authorizing the city to purchase a waterworkssystem and issue bonds in payment therefor, as is provided insaid sections; that is to say: That in case of default in thepayment of said bonds and interest coupons, the property herebyconveyed shall be conveyed by said board of waterworkscommissioners by deed of conveyance to the bondholders, to beheld by them in the relative proportion that the bonds held byeach shall bear to the entire bond issue; provided, that saidproperty may be conveyed to a trustee designated by a majority ofthe bondholders to be held for the use of all the bondholders inthe proportion aforesaid. The power hereby reserved in saidboard of waterworks commissioners is to be irrevocable, and thecity, by the acceptance of this deed, hereby recognizes suchirrevocable power in said board of waterworks commissioners forthe purpose of securing the payment of said bonds and coupons."

3. At the time of the delivery of the deed, the deliverythereof shall be accompanied with at least a majority of thebonds of the corporation, if there are any outstanding bonds; andin case all of the bonds are not delivered, the person, firm orcorporation so making the deed to the city shall depositsufficient money in the depositary selected for the waterworkssystem, as herein provided in said sections, to pay off any suchoutstanding bonds as are not delivered at the time of thedelivery of the deed, so that the city will receive the propertyfree and clear of all liens, and subject to no lien except thelien of the bonds given by the city, as provided in said sectionsfor the purchase price thereof.

(RSMo 1939 § 7810)

Prior revisions: 1929 § 7665; 1919 § 9103; 1909 § 9928