school board may determine. The money obtained as a loan on such bonds or notes shall be disbursed by order of such board in payment of expenses incurred in buying grounds, building school houses or in making repairs on school buildings heretofore erected for such school city or town, and for no other use or purpose whatsoever. Before any such debt is incurred, such school officers shall give notice by publication for three consecutive weeks in some newspaper published in such city or town, and if none be so published, then in some newspaper of general circulation in such city or town, or by posting such notice in five public places in such city or town for three weeks, which notices shall state the aggregate debt proposed to be incurred, the location of real estate, if it be proposed to buy real estate; the character and size of the building to be erected, and the nature of the improvement proposed: Provided, That no board of trustees shall create any indebtedness including all outstanding indebtedness exceeding two per centum of the taxable property of such city or town, as ascertained by the last assessment for state and county taxes previous to the incurring of the said indebtedness: and Provided, further, That said bonds or notes shall not be sold at a less rate than one hundred (100) cents on the dollar. (R. S. 1914, §6572.)

Construction of the act of 1909, amending the statutes authorizing school trustees to borrow money and to issue bonds or notes. Monical v. Heise, 49 App. 302; 94 N.E. 232.

The act of 1909, Acts 1909, p. 100, amending the statute providing for the contracting of an indebtedness by school corporations of cities, is to be construed in connection with the act of 1879 on the same subject and the notice required to be given by the act of 1909 applies in case an indebtedness is to be incurred by contract as well as in case of issuance of notes or bonds. Caldwell v. Bauer, 99 N. E. 117.

Schools-Cities and Towns-Refunding.

SECTION 1. Be it enacted by the general assembly of the State of Indiana, That in all cities of the State of Indiana, which are incorporated under the general laws of the state, and in all incorporated towns of this state, when the school city or school town of any such city or incorporated town is indebted at the time of the passage of this act, which indebtedness is evidenced by bonds, notes or other obligations heretofore issued or negotiated by any such school city or school town, for the purpose of funding or refunding such indebtedness or any part thereof, reducing the rate of interest thereon, extending the time of payment thereof, and cancelling so much thereof as may be due or which shall become

due, the board of school trustees of any school city or school town, in such cities or incorporated towns, are hereby authorized to issue the bonds of such school city or school town, with interest coupons attached, for an amount not exceeding in the aggregate the whole amount of the indebtedness of such school city or school town, which bonds may be in any denomination not less than fifty ($50.00) dollars nor more than one thousand ($1,000.00) dollars and shall be payable at any place named therein and at a time not later than twenty-five years from the date thereof, bearing interest not exceeding four and two-fifths per cent. per annum, payable annually or semi-annually, as such board of school trustees of any such school city or school town may negotiate such bonds at any market or place at not less than par. In the event any city or incorporated town in this state prior to the taking effect of this act, shall have issued its bonds, notes or other obligations for the purpose of procuring funds with which to buy school grounds or erecting school buildings, or repairing such school buildings, and the proceeds derived by reason of the sale of such bonds have been used by the school cities or school towns of any such city or incorporated town for the purpose of buying grounds for school purposes, or erecting buildings or making improvements to school buildings, then it shall be lawful for the board of school trustees of any such school city or school town in such cities or incorporated towns and they are hereby authorized to issue and negotiate the bonds of such school city or school town for the purpose of funding or refunding such indebtedness or any part thereof for the same purposes and in the same manner and on like terms and conditions as provided for in this section in other cases: Provided, That this act shall not be construed as authorizing and empowering trustees of such school cities or school towns to issue funding or refunding bonds for any indebtedness than (that) may be created after the taking effect of this act, except as herein porvided. (R. S. 1914, §6577 a.)

Levy-Sinking Fund-Interest.

SEC. 2. For the purpose of paying bonds issued as provided. in the foregoing section, the board of school trustees of any such. school city or school town shall add to the tax duplicates thereof annually, a levy sufficient to pay all yearly interest on said bonds and may provide a sinking fund for the liquidation of the principal thereof when it shall become due, which sinking fund, together

with the interest, increase of profit thereon, shall be applied to the payment of said bonds and to no other purpose. (R. S. 1914, $6577 b.)

Repeal.

SEC. 3. All laws or parts of laws in conflict herewith are hereby repealed.

Annexation School Territory-Liability for Debts.

SECTION 1. Be it enacted by the general assembly of the State of Indiana, That section 1 of an act entitled "And act to provide for the reimbursement of school townships where school property belonging thereto has been or shall hereafter be annexed to any city or incorporated town, and declaring an emergency"; approved March 3, 1899, be and the same is hereby amended to read as follows, to wit: Section 1. In all cases where any city or incorporated town of this state shall hereafter annex any territory, or where any town shall be hereafter incorporated in which territory so annexed or incorporated there shall be the property of any school township used by such school township for school purposes, and such school township shall be at the date of such annexations, indebted either for the purchase of said school property, or for buildings constructed thereon, it shall and is hereby made the duty of the school corporation of such city or incorporated town to pay such indebtedness, and such school corporation is hereby declared to be and made liable therefor. Until such city or town school corporation shall have paid such indebtedness, it shall not be entitled to a deed therefor, and if such indebtedness is paid by said school township, such school township shall be entitled to recover the amount so paid from said city school corporation with interest at the rate of six per cent. per annum from date of payment, and on payment of such amount the said school corporation shall be entitled to a deed of such property as now by law provided. Whenever any annexation of such property has been made prior to the passage of this act and subsequent to the passage of the act of which this is amendatory, then liability on the part of such annexing city or town for any such indebtedness remaining unpaid at the time of the passage of this act, shall be under this act the same as if such annexation had taken place subsequent to the passage of this act. (R. S. 1914, §6612.)

Before the passage of this act the annexation of territory by a city or town did not render such corporations liable for unpaid purchase-money

due on school property. Board v. Center Tp., 143 Ind. 391, 42 N.E. Rep. 808; Maumee Tp. v. School Town, 159 Ind. 423, 65 N. E. Rep. 285.

Schools-Old School Buildings-Tearing Down.

SECTION 1. Be it enacted by the general assembly of the State of Indiana, That whenever any city or town having title to real estate by purchase gift or otherwise, for school purposes within such city or town, upon which real estate there is situate a public school building or other buildings, connected therewith, which are in bad repair or otherwise insufficient to meet the necessary requirements for the full enjoyment and advancement of proper educational uses and activities, and should it now, or hereafter, be deemed by said board of trustees necessary for said school city or school town to tear down or otherwise remove such school building or buildings connected therewith, and in lieu of the use of them or any one of them construct new public school buildings or other buildings connected therewith, upon the real estate occupied by said old and insufficient school building or other buildings connected therewith, the trustees of school cities of incorporated cities and trustees of school towns of incorporated towns of the State of Indiana, are hereby authorized and empowered to tear down or otherwise remove any such old and insufficient school building or other buildings connected therewith, for the purpose of erecting upon said real estate a new school building, or other buildings connected there with in lieu of those removed or torn down. (R. S. 1914, §6563 a.)

Sale of Old Buildings-Use of Old Material.

SEC. 2. Boards of trustees of school cities and boards of trustees of school towns are hereby authorized, should said board of trustees deem it most advantageous to said school city or school town to do so, to sell at private sale said old and insufficient school building or other buildings connected therewith in all cases where it is necessary in order to meet the requirements for the enjoyment and advancement of proper educational uses and activities, to erect new school buildings, or other buildings connected therewith upon the real estate occupied by said old and insufficient school building or buildings. Before the sale of any such building or buildings shall be authorized, however, said board of school trustees shall cause said building or buildings to be appraised at a fair cash value by two reputable resident householders and freeholders of the school city or school town offering said building

or buildings for sale, and said appraisement shall be made under oath and spread of record upon the records of said board of trustees, and no sale shall be made for less than the appraised value, and for cash, and the same shall be applied to the payment of the cost of the new building or buildings proposed to be constructed. The board of trustees as aforesaid, shall also cause a notice to be given reciting therein the terms, time and place of sale, and a general description of the building or buildings to be sold by publishing the same once each week for a period of two consecutive weeks in some newspaper of general circulation printed and published in the city or town where said building or buildings are for sale. if no such newspaper be published in said city or town, then by publishing said notice for a like period of time in any newspaper of general circulation printed and published in the county where said building or buildings are for sale. If no newspaper be printed or published in the county then by publishing said notice for a like period of time in any newspaper, if any, circulating in said city or town, and in addition thereto by posting a written or printed notice in five different public locations in said city or town where said building or buildings are for sale: Provided, however, The board of trustees of school cities and boards of trustees of school towns may, if they deem it most advantageous to said school city or school town to do so, incorporate all or any part of the material constituting said old or insufficient school building connected therewith as a part of the plans and specifications used or to be used by said board of trustees in the construction of said new school building or other building connected therewith, and the value of said old material so incorporated as aforeasid, shall be taken into consideration and finally determined in the submission of bids for the construction of said new school building or other buildings connected therewith, by the person or persons, firms or corporations making sealed proposals for the construction of said building or buildings, as aforesaid, and all of said sealed proposals shall be based upon the quantum of material constituting said old building or buildings incorporated as aforesaid, in the plans and specifications ultimately adopted by said board of trustees for the construction of said new building or buildings; and the notice given to all contractors for sealed proposals for construction, and the award of the contract thereto, and the contract entered into by and between the successful bidder or bidders and said board of trustees for the construction of said new school building or other buildings connected therewith shall so provide: