of bond sale, (10) proof of publication of notice of bond sale, (11) proof of posting notices, (12) bond without coupons, (13) bond with coupons, (14) title of indorsement, and (15) certificate of proceedings. In order to help communities to adhere to these forms the state department of education in New York has issued a handbook which contains the following forms as well as the laws authorizing the issuance and sale of school bonds:

ISSUE AND SALE OF BONDS

1-Power to issue bonds. The law provides that trustees or boards of education are "authorized, whenever a tax shall have been voted to be collected in instalments, for the purpose of building a new schoolhouse, or building an addition to a schoolhouse, or making additions, alterations or improvements to buildings or structures belonging to the district or city, or for the purchase of a new site, or for an addition to a site, or for the purchase of land or buildings for agricultural, athletic, playground or social center purposes, to borrow so much of the sum voted as may be necessary, at a rate of interest not exceeding six per centum, and to issue bonds or other evidences of indebtedness therefor, which shall be a charge upon the district, and be paid at maturity, and which shall not be sold below par" (see Education Law, section 480, subdivision 1.)

Money may not be borrowed and bonds issued for a purpose not specified in this section. Movable furniture, apparatus and fixtures may not be purchased from the proceeds of bonds sold. The resolution usually authorizes and directs the board of education or trustee to borrow money and issue bonds therefor (see forms Nos. 6 and 7), but this is not essential so long as the resolution directs that the tax voted be collected in instalments. It is preferable to authorize the bond issue, and the forms herein provide for it. The law further authorizes the board of education or trustee to fix the rate of interest and this should be observed and followed unless emergency arises making it necessary to increase such rate.

The statute directs the board of education or trustees to issue and sell the bonds. They may not exceed the amount voted by the resolution, but if in their judgment the proposed building or improvement may be erected in accordance with the plans and specifications adopted and approved by the department, or the lands may be acquired, for a less sum than that voted, the amount of bonds issued and sold may be less than the amount voted. The number of instalments in which the tax is to be collected is prescribed by the resolution and this is binding upon the trustee or board. But the amount of each instalment and the denomination of each bond may vary in

accordance with the amount of money required for the purpose for which it was voted.

2-Resolution of trustees or board of education authorizing bond issue. In a common school district having a sole trustee, it is not required that the trustee take any formal action prior to the sale. In such district the trustee should immediately give notice of the bond sale.

In union free school districts, and in common school districts having more than one trustee, the board of education, or board of trustees, should hold a meeting and adopt a resolution providing for the issue and sale of district bonds. The resolution may be in the following form:

FORM 9

RESOLUTION OF BOARD Authorizing BOND ISSUE

Resolved, That pursuant to a resolution adopted by the qualified electors of‒‒‒‒‒‒ school district No.----of the town of

19----, and in accordance with the authority conferred upon this board by section 480 of the Education Law, this board of---_borrow on the credit of said district the sum of

(education or trustees)

dollars ($.

and issue district bonds therefor in the said sum of____

dollars ($

-),

‒‒‒‒‒‒‒‒‒), each of said bonds dollars

-

--to the __day of

to be in the denomination of.. ($_ -‒‒‒‒‒‒‒), and to be numbered from 1 to-‒‒‒‒‒‒ inclusive, and bearing interest at the rate of--------per centum per annum, payable----at the_ (annually or semi-annually) (bank or trust company) holder thereof at New York Exchange, on the-in each year that any of said bonds are outstanding. Said bonds shall be dated_. such bonds shall mature on the_ 19 and one bond shall mature___

--days of

19____and one of

-day of

thereafter

(annually or semi-annually)

--

until all of such

on the bonds have matured. Said bonds shall not be sold at less than their par value.

Resolved, That a public sale of such bonds shall be held at

This resolution must be entered in full in the minutes of the meeting by the clerk.

3-Notice of bond sale. The law requires "notice of the time and place of the sale of such bonds shall be given by the trustees (of a common school district) or board of education (of a union free school district) at least ten days prior thereto by publication twice in two newspapers, if there be two, or in one newspaper, if there be but one, published in such district. But if no newspaper shall then be published therein, the said notice shall be posted in at least ten of the most public places in said district ten days before the sale" (Education Law, section 480, subdivision 2).

Section 9 of the general municipal law provides that “all bonds hereafter issued by any municipal corporation, or by any school district or civil division of the state, shall be sold, in the case of a city of the first class as required by its charter or by any special act under which such bonds are issued, in the case of a city of the second class as required by section sixty-one of the second class cities law, and in all other cases at public sale not less than five or more than thirty days after a notice of such sale, stating the amount, date, maturity, and rate of interest, has been published at least once in the official paper or papers, if any, of any such municipality, provided that if there is no official paper, then such notice of sale shall be published in a newspaper published in the county in which such bonds are to be issued, or a copy thereof shall be sent to and published in a financial newspaper published and circulating in New York City."

If there are one or more newspapers published in the district, the notice must be published, and need not be posted. There should be wide publicity given to the sale. If there are no newspapers published in the district, the notice must be published in a newspaper published in the county or in a financial newspaper published and circulating in New York City, in addition to posting in ten of the most conspicuous places at least ten days before the sale. The provision as to posting, in those districts in which newspapers are not published, is mandatory. It is also suggested that copies of the notice be mailed to bankers and others known to have money to invest in municipal securities. The notice may be in the following form:

FORM 10

NOTICE OF BOND SALE

Notice is hereby given that the____

(trustee, board of trustees, or of-..

board of education)

school district No.-----

county of

town of

(union free or common)

will receive sealed proposals (or, in

case bonds are sold at auction, "will sell to the highest bidder”) at

of---.

at auction)

in the----

day of___

19---- (for the purchase of) bonds of said district of the denomination of.. ___dollars ($‒‒‒‒‒‒‒‒‒‒‒‒) numbered from 1 to‒‒‒‒‒‒‒‒‒‒‒‒inclusive and bearing interest at the rate of------per cent per annum, payable annually at the First National Bank of.. -to the holder thereof in New York exchange. Said bonds will not be sold below par, will be dated___ 19----, and one of such 19----,

bonds will mature on the first day of-and one bond mature annually thereafter on the first day of __until all of such bonds shall have matured.

Purchasers will be required to deposit with their bids in cash, by certified check or by bank draft ten (10 per cent) of the amount of such bonds and pay the balance with accrued interest when such bonds are delivered. The right to reject any and all bids is reserved. Dated___. 19-----9

Bonds may be sold either by receiving sealed proposals for the purchase thereof, or at public auction to the person who bids the highest amount therefor. The notice must specify how the bonds are to be sold. The above notice may be modified as indicated, so as to provide for sale by either method.

If the notice has been published as required by law in one or more newspapers in the district, proof of publication should be made in the following form:

FORM 11

PROOF OF PUBLICATION OF NOTICE OF BOND SALE

STATE OF NEW YORK

SS.

COUNTY OF.

manager of..

------9

being duly sworn says that he is the

a newspaper published

within union free school district No.‒‒‒‒‒ town of...

and that a notice of the sale of bonds of said district, a copy of which is hereto attached, was published in said newspaper twice as follows: once in the issue of.. 19----, and once in the issue 19- (Deponent further says that the is the only newspaper

of_

1111)

published in said union free school district.)

Sworn to before me this

---day of______19__

NOTARY PUBLIC

If two newspapers are published in the district, the last sentence should not be inserted and an affidavit of publication should be obtained from the publisher or manager of each newspaper.

If there are no newspapers published in the district the clerk of the district, or the trustee, who posted the notices in ten conspicuous places in the district must make the following affidavit:

posted ten copies of the

notice of sale of bonds, a copy of which is hereto annexed, in said district as follows: one on the door of the schoolhouse of said district, one in the post office at_-

one at (state the ten places where the notices were posted.) Sworn to before me this

In districts where no newspaper is published, there should also be furnished proof of publication of such notice in a newspaper of the county or in a financial newspaper of New York City.

4-Conduct of sale. The sale of bonds must be conducted at the time and place, and in the manner specified in the notice. The trustee, board of trustees, or board of education should meet at the time and place specified and open the sealed bids which are submitted. If the sale is by public auction, the trustee, or president of the board, should call for bids. The bonds should be declared to be sold to the person who offers to pay the greatest amount over and above the par value of the bonds. The bonds may not be sold for less than par. If no proposals or bids are received, or if those made are not to advantage of the district, the trustee or board may adjourn the sale and cause a new notice to be given.

The board of trustees or board of education should act as a body in transacting the business of selling the bonds. The proceedings of the meeting should be entered upon the minutes. If the district has a sole trustee, he should cause the clerk to enter in the minutes of the district a statement of the names of the persons who submitted proposals or made bids, the amount bid by each person, and the name of the person to whom the bonds were sold. A similar statement should be entered upon the minutes of the board of trustees or the board of education by the clerk.