245.230. Board may issue bonds--how funds are to be used. - Missouri Statutes

Board may issue bonds--how funds are to be used.

245.230. 1. The board of supervisors may, if in theirjudgment it seems best, issue bonds not to exceed ninety-onepercent of the total amount of the taxes levied under theprovisions of section 245.180, in denomination of not less thanone hundred dollars, bearing interest from date at a rate not toexceed six percent per annum, payable semiannually, to mature atannual intervals within twenty years, commencing after a periodof years not later than five years, to be determined by the boardof supervisors, both principal and interest payable at someconvenient banking house or trust company's office to be named insaid bonds, which said bonds shall be signed by the president ofthe board of supervisors, attested with the seal of said districtand by the signature of the secretary of the said board.

2. All of said bonds shall be executed and delivered to thetreasurer of said district, who shall sell the same in suchquantities and at such dates as the board of supervisors may deemnecessary to meet the payments for the works and improvements inthe district. Said bonds shall not be sold for less thanninety-five cents on the dollar, with accrued interest, shallshow on their face the purpose for which they are issued, andshall be payable out of money derived from the aforesaid taxes.A sufficient amount of the levee tax shall be appropriated by theboard of supervisors for the purpose of paying the principal andinterest of the said bonds and the same shall, when collected, bepreserved in a separate fund for that purpose and no other. Allbonds and coupons not paid at maturity shall bear interest at therate of six percent per annum from maturity until paid, or untilsufficient funds have been deposited at the place of payment.Any expenses incurred in paying said bonds and interest thereonand a reasonable compensation to the bank or trust company forpaying same, shall be paid out of the other funds in the hands ofthe treasurer and collected for the purpose of meeting theexpenses of administration. It shall be the duty of said boardof supervisors in making the annual tax levy, as heretoforeprovided, to take into account the maturing bonds and interest onall bonds, and to make ample provisions in advance for thepayment thereof. In case the proceeds of the original tax levymade under the provisions of section 245.180 are not sufficientto pay the principal and interest of all bonds issued, then theboard of supervisors shall make such additional levy or levies asare necessary for this purpose, and under no circumstances shallany tax levies be made that will in any manner or to any extentimpair the security of said bonds or the fund available for thepayment of the principal and interest of the same.

3. Said treasurer shall, at the time of the receipt by himof said bonds, execute and deliver to the president of the boardof supervisors of the said district, a bond with good andsufficient sureties, to be approved by the said board ofsupervisors conditioned that he shall account for and pay over asrequired by law and as ordered to do by said board of supervisorsany and all money received by him on the sale of such bonds, orany of them, and that he will only sell and deliver such bonds tothe purchaser or purchasers thereof under and according to theterms herein prescribed, and that he will return, duly canceled,any and all bonds not sold to the board of supervisors, whenordered by said board so to do, which said bond shall remain inthe custody of the said president of said board of supervisors,who shall produce the same for inspection or for use as evidencewhenever and wherever legally requested so to do.

4. The said treasurer shall promptly report all sales ofbonds to the board of supervisors, and the board shall, at theproper time, issue warrants for the payment of the maturing bondsso sold and the interest payments coming due on all bonds soldand a reasonable compensation to the bank or trust company, andthe said treasurer shall place sufficient funds at the place ofpayment to pay the same. In case proper warrants are not issuedby the board of supervisors as herein provided then the treasurershall of his own accord place said funds at the place of paymentand the canceled bonds and coupons and the receipt of the bank ortrust company shall be accepted in lieu of warrants.

5. The successor in office of any such treasurer shall notbe entitled to said bonds or the proceeds thereof until he shallhave complied with all the foregoing provisions applicable to hispredecessor in office; provided, if it should be deemed moreexpedient to the board of supervisors, as to moneys derived fromthe sale of bonds issued, said board may by resolution, selectsome suitable bank or banks or other depositary, as temporarytreasurer or treasurers, to hold and disburse said moneys on theorders of the board as the work progresses, until such fund isexhausted or transferred to the treasurer by order of the saidboard of supervisors.

6. The funds derived from the sale of said bonds or any ofthem shall be used for the purpose of paying the cost of thelevee works and improvements and such costs, expenses, fees andsalaries as may be authorized by law and used for no otherpurpose.

(RSMo 1939 § 12534)

Prior revisions: 1929 § 10944; 1919 § 4638

CROSS REFERENCES:

Bond issues, proceeds and moneys for interest and sinking fund to be kept separate, RSMo 108.180 to 108.230

Refunding bonds authorized, payment of, RSMo 108.140 to 108.160