of principal and interest and any other details it desires embodied in the bonds or in the ordinance providing for their issue and shall certify same to the governing body of said city, who shall at once adopt an ordinance in conformity therewith and cause the bonds to at once be properly prepared, executed and turned over to the board of education for sale and delivery," so that said section as thus amended shall read as follows:

"Section 26. Whenever the board of education shall deem it necessary for the proper accommodation of the schools of such city to acquire or enlarge sites for school buildings, to erect, improve, remodel, rebuild or restore buildings for high schools or for any other school purpose, or for any or all these purposes, and the annual funds raised from other sources, are not sufficient to accomplish said purpose or purposes, said board shall make a careful estimate of the probable amount of money required for such purpose or purposes and it shall certify to the general council or board of commissioners of said city the fact that an election for an issue of bonds for school improvement shall be held, together with the amount of money for which bonds shall be issued. and the purpose or purposes to which the proceeds thereof shall be applied. It shall thereupon be the duty of the general council or board of commissioners to adopt an ordinance submitting to the qualified voters of the city at the next regular election the question whether bonds of the city shall be issued for the purpose or purposes aforesaid. The bonds so issued shall be designated as "School Improvement Bonds," and the ordinance shall fix the time the bonds shall run, and if a serial issue, then the amount to mature at each time, and limit the rate of interest which will be permitted on said bonds, and the total

amount of bonds to be issued, and provide for the levy of a tax to pay the interest and to either redeem the bonds as they mature, or provide for the accumulation of a sinking fund to retire them at their maturity.

"No submission of the question of issuing bonds. hereunder shall be had prior to the regular election in November, 1913, and the total outstanding issue of bonds for school purposes, including bonds already issued, shall never exceed (two) per centum of the value of the taxable property of the city to be estimated by the assessment next before the last assessment previous to the incurring of the indebtedness. The question to be submitted shall be so framed that the voter may by his vote answer for or against.

"If the voters of the city shall determine by a twothirds majority of those voting that such bonds shall be issued they shall, when so issued, be placed under the control of the board of education, who shall determine when and at what price and how they shall be sold, and the date, number of bonds, denominations, whether coupon or registered, the rate of interest and frequency of payment thereof, place of payment of principal and interest and any other details it desires embodied in the bonds or in the ordinance providing for their issue and shall certify same to the governing body of said city, who shall at once adopt an ordinance in conformity therewith and cause the bonds to at once be properly prepared, and executed and turned over to the board of education for sale and delivery, Provided, That no such bonds shall be sold for less than par; and provided, further that any premium which may be obtained from said bonds shall constitute a part of the sinking fund for their ultimate retirement. As the bonds are sold, their proceeds shall be placed to the credit of the

board in the same depository which is selected for its other funds, but shall be kept in a separate account and shall be used only for the purposes for which the bonds were issued.

"It shall be the duty of the general council or of the commissioners, in addition to the levy made for the maintenance of the schools as herein before provided, to levy annually in its tax levy a rate that will raise a sum that shall be sufficient to pay the interest an create a sinking fund for the payment of the bonds at maturity. The said bonds, principal and interest, shall be a charge upon the sinking fund of said city, and it shall be entitled to have the annual tax that shall be levied as aforesaid."

§ 6. All laws in conflict herewith are hereby repealed.

"Whereas, the date for the selection of a treasurer under the act to which this act is an amendment and under this act, falls at such a time as will produce doubt and confusion in the business affairs of the boards of education of four large cities, an emergency is hereby declared to exist and it is hereby ordained that this act shall take effect from and after its approval by the Governor.

Approved March 23, 1916.

CHAPTER 58

AN ACT authorizing Boards of Education in cities of the second class to create a fund for protection against fire and other casualties and regulating its investment and use.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

1. The Board of Education of any city of the second class shall have power to establish a fund to

be known as the "Insurance Fund," which it may do by resolution so stating and fixing the maximum limit of said fund, and said fund, so set apart, shall be maintained separate and distinct from the other funds and moneys of this board, to be used exclusively for replacing and repairing any injury or destruction to any of the buildings owned by the board or to their contents, when caused by fire, tornado, windstorm, cyclone, casualty, explosion, riot or flood, but not when caused by wear and tear or the natural processes of decadence or deterioration.

§ 2. That the Board of Education may raise the maximum limit of said fund from time to time as it may deem best. Until the amount in said fund shall equal the maximum limit, the Board of Education shall each year, from the revenues under its control, set apart to said fund a sum equal to onetenth of the difference between the amount then in the fund and the then maximum limit of the fund, the same to be paid over and placed in said fund in January and July of each year, at least half in December and half in June of that year. Whenever any portion of said fund shall be used as herein provided, payments to restore the fund shall at once be begun and be continued until the restoration is complete. Whenever the fund is, for any reason, below the maximum limit, the interest derived from the investment thereof shall be accumulated and added to the fund, but otherwise said interest may be transferred to the general funds of said board.

3. That said fund shall be kept on deposit with the Treasurer of the board, unless by order of the board upon the recommendation of the committee on finance, it be invested under the super

vision of that committee, in United States, State, county, city or school bonds (not bonds payable from assessments, and registered, if practicable), and if said bonds be coupon bonds, then same shall be kept deposited in a safe deposit vault and be opened only by the business manager or clerk of the board in the presence of the President of the board and the chairman of the finance committee.

§ 4. The board shall once each year cause every building to be strictly examined by a competent insurance inspector, who shall make a written report of the result of his examination with recommendations.

$ 5. Whenever any injury occurs to any of the buildings, or their contents, from fire, tornado, windstorm, cyclone, casualty, explosion, riot or flocd, a sworn proof of loss in writing shall be prepared within thirty (30) days thereafter by the business director, which shall show in detail the items of injury, and in detail an estimate of the extent of the financial loss and whether and to what extent the same is covered by insurance, with the names of the companies, the numbers of the policies and the names of the agents, and shall file said statement with the Board of Education. Before the Board of Education shall have power to appropriate any portion of said fund, the building committee and the finance committee of said board shall report to the board in writing answering in detail the following questions and making such recommendations as it deem best:

$.

a. What is the entire

loss on the building? When and what caused it?

b. What, if any, deduction should be made for wear and tear and the natural processes of decadence or deterioration? $.