(union free or common) 111) 1119 school district No.-‒‒‒‒‒‒‒‒‒ of the town of.. county of do hereby certify that I have compared the papers attached hereto with the original papers and records on file in the office of the clerk of said district and that the same are true copies of such papers and records and the whole thereof. DISTRICT CLERK In addition to the foregoing a certificate should be obtained from the Commissioner of Education certifying that the plans and specifications have been approved by him as required by section 451 of the Education Law. This certificate should be attached to the certified proceedings described above. Such certificate may be obtained on application to the Commissioner of Education. Such application should show the number of the district and the name of the town in which it is located and the date on which such plans and specifications were approved. The state department of public instruction in Wisconsin has also issued a general handbook relating to school law, but it is not as detailed in regard to issuing bonds as is the New York handbook. The state department in Wisconsin has prepared a sample ballot for its union free high school districts, a sample of which appears in Form 17. Such a ballot as this is required by law in many states, and under such conditions must, of course, be used. However, this kind of ballot is most confusing to voters and should be discarded unless it is legally required. It seems to the author that many other state departments of public instruction could well emulate New York and Wisconsin in assisting local communities in the issuance of school bonds. APPENDIX A. GLOSSARY Amortization-The retirement, payment, and the removal of debt. Annuity System-A schedule for paying off a bond issue by annual payments on principal. Annual Interest-Interest paid each year. Bonded Debt-Debt secured by bonds. Bond-An instrument issued by a corporate body in order to borrow money, in which the issuer promises to pay within a stated time a certain stipulated sum with interest at some fixed rate. Coupons-Little promissory notes attached to couponbonds in the form of coupons, one note maturing on each interest date. Coupon-bonds-Negotiable instruments that ordinarily do not have on them the name of the owner. Therefore, they pass from hand to hand like bank notes. Capital Outlay-The payment of money for anything which results in an increase in the total amount of permanent property possessed by the school system. Corporation-A legal person, perfectly distinct from the members which compose it, having a special name and having such powers, and only such, as the law prescribes. A corporation can sue and be sued, have a common seal and have a continuous legal existence. Current Expense-Running expenses. Date of Bond-Date on which interest begins. Debt Service-The payment of interest and the payment of principal of bonds and short term loans. Denomination-Size of bond. Discount-When a bond sells at less than par value the discount equals par value minus selling price. Direct Obligation-Obligation on a tax levying body. Escrow1-Escrow is the practice of depositing papers or securities with a third party to be held until a designated event takes place. For example, a municipality may deposit its bonds with a bank, and the purchaser may pay the purchase price to the same bank, the transaction to be consummated when proof in stipulated form is deposited with the bank that no litigation exists with regard to the issuance of the securities or the purchase of property for which the bonds are issued. Face Value-Par or full value. Floating Bonded Debt-Debt which is to be paid within a short time after assumption, usually one year. Gross Bonded Debt-Securities for which payment is provided by bonds. Gross Rate of Interest-Quoted rate. Gross Yield-See gross rate of interest. Income Basis-Rate paid after premium or discount has been considered. Interest-Money paid for loan of principal. Interchangeable Bonds-Registered bonds which may be changed for coupons, or coupon bonds that may be changed for registered bonds. Legal Rate of Interest-Per cent which may be paid for loan of principal, determined by law. Maturity Schedule-Retirement plan. 1Fraser Brown. "Municipal Bonds." |