Report of a Special Investigation Relative to Municipal Finance and Accounts, January 1, 1917 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 edition. Excerpt: ... PAET I. INDEBTEDNESS. 1. Scope of the Present Law. Its Inadequacy for the Needs of Present Conditions. The indebtedness of New Hampshire municipalities is, in general, of three kinds: first, the bonded or fixed debt issued under the authority of the "Municipal Bond Act of 1895" (Ch. 43, Laws 1895); second, the floating debt for the most part represented by outstanding demand notes which have been issued under the provisions of Ch. 21, Laws 1907; Sect. 22, Ch. 43, of the Public Statutes; and third, trust funds the principal of which has been appropriated to city or town uses, a practice authorized by Ch. 40, Laws 1899, and Ch. 83, Laws of 1901. This third form of debt will be considered at length in Part II of this report, as it is one of the methods of disposition of trust funds. The other two forms of debt are treated in this chapter. The purposes which the Municipal Bond Act (Ch. 43, Laws 1895) sought to accomplish were: first, to prevent the incurrence of indebtedness for excessively long periods of time, periods longer than the life of the improvement for which the bonds were issued; second, to prevent the incurrence of bonded debt unrestricted as to amount; third, to insure that proper provision be made for the payment of debt at maturity. To the first end the act provides that the bonds shall be payable within twenty years from the time of their issue. The debt evidenced by bond's issued under the provisions of this act may be extended from time to time and such bonds refunded by the issue of other bonds, but in no case shall the time for the final payment of the debt be extended beyond the period of twenty years from the date of the original issue. To prevent the iiicurrence of bonded debt unrestricted as to amount the act provides that...