COMPILED CODE - Iowa Legislature - State of Iowa

274
§ 3988. CONSTRUCTION OF WATERWORKS IN CITIES. Tit. XIII, Ch. 28.
15 mortgages or bonds shall bear not more than six per cent interest per
16 annum ; but no part of the general fund of such city shall be applied
IT upon such contracts, bonds or mortgage. In the payment thereof, the
18 city and holders of said contracts, bonds or mortgages shall be re-
19 stricted to the proceeds of the said taxes and the net revenues of the
20 said waterworks, as hereinbefore provided; and such contract, con-
21 tracts or bonds shall not bear a higher rate of interest than five per
22 cent per annum, payable semiannually. Cities of the first class and
23 cities of the' second class having a population of over ten thousand
24 which have adopted or may adopt an ordinance availing themselves
25 of the privileges conferred herein, shall in addition thereto have and
26 possess the following powers :
27 1. In addition to mortgage on the water plant to secure the bonds
28 hereinbefore authorized, the said city may, in addition to the security
29 of said mortgage and as a part thereof, grant a franchise to maintain
30 and operate said plant on foreclosure sale under said mortgage, said
31 franchise to become effective only on the passing of title under the
32 said foreclosure Sale and to continue for a period of not exceeding
33 twenty-five years thereafter; providing that the granting of such fran-
34 chise shall be approved by a majority of the electors of said city, vot-
35 ing at an election thereon, which election shall be held as provided in
36 section thirty-nine hundred eighty-six of the compiled code.
37 2. They shall have power to issue the general bonds of the city
38 creating an indebtedness of said city to an amount which, with its
39 other existing indebtedness, shall not exceed five per cent of the actual
40 value of the taxable property of said city, as shown by the last pre-
41 ceding assessment, the said bonds or proceeds of sale thereof to be
42 used in the purchase or construction of a water plant, as herein pro-
43 vided ; provided, however, that such bonds can be issued by order of
44 the city council of said city only after a contract for the purchase or ,
45 construction of a water plant and providing for the issuance of such
46 bonds has been approved by the majority of the electors of said city
47 voting at an election thereon to be held in accordance with the provi-
48 sions of section thirty-nine hundred eighty-six of the compiled code.
49 Neither the said bonds nor the proceeds thereof shall be diverted to
50 another purpose than as herein provided. Said cities may purchase
51 or contract a water plant and pay for the same partly out of the water
52 bonds and partly out of the general bonds herein provided, or wholly
53 out of either class of bonds or proceeds thereof, as such city may
54 determine. The general bonds of the city herein provided shall bear
55 interest at not exceeding five per cent per annum, payable semiannual-
56 ly, and shall be payable not more than twenty years after date and in
57 the general form of bonds provided by section thirty-two hundred
58 sixty-one of the compiled code, with such changes as may be necessary
59 to conform the same to this statute and the ordinances or contract of
60 the city under which they are issued.
[C, '97, § 745; S., '13, § 745; 39 G. A., ch. 49, § 4.]
SEC. 3988. Applicable to first-class cities.
1 All the provisions of section thirty-nine hundred eighty-seven of
2 the compiled code shall be held and construed as applying to cities
3 of the first class, and cities of the second class having a population
4 of over ten thousand.
[S., '13, § 747-b; 39 G. A., ch. 49, § 5.]