Newton v. Hall, Secretary of State

120 S.W.2d 364, 196 Ark. 929, 1938 Ark. LEXIS 284
CourtSupreme Court of Arkansas
DecidedOctober 19, 1938
Docket4-5352
StatusPublished
Cited by35 cases

This text of 120 S.W.2d 364 (Newton v. Hall, Secretary of State) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton v. Hall, Secretary of State, 120 S.W.2d 364, 196 Ark. 929, 1938 Ark. LEXIS 284 (Ark. 1938).

Opinions

Smith, J.

The only question presented for our consideration and decision in this case is the sufficiency of the ballot title under which it is proposed to submit Amendment No. 28 to the electors for their action at the coming general election. This amendment is generally referred to as the Refunding Amendment.

To present the objections made to the sufficiency of the ballot title it will be necessary to copy the amendment in this opinion, notwithstanding its length, and in doing so we shall, after copying each section of the amendment, also copy the portion of the ballot title relating to that section.

Section 1 of this amendment reads as follows:

“Section 1. The Refunding Board created by § 1 of act 11 of the Second "Extraordinary Session of the Forty-ninth General Assembly of the state of Arkansas, approved February 12, 1934, may issue refunding bonds of the state of Arkansas for the purpose of refunding all bonds and obligations issued under said act. Bonds of the state of Arkansas may from time to time be issued hereunder and exchanged for the bonds and obligations, of equal face amount, which are described in said act 11 of 1934, at the following rates:
“For bonds or obligations which bear interest at the rate of five per cent., bonds may be issued hereunder bearing interest at not more than four per cent.; for bonds or obligations which bear interest at the rate of four and three-fourths per cent., bonds may be issued hereunder bearing interest at not more than three and nine-tenths per cent.; for bonds or obligations which bear interest at the rate of four and one-half per cent., bonds may be issued hereunder bearing interest at not more than three and three-fourths per cent.;' for bonds or obligations which bear interest at the rate of four and one-fourth per cent., bonds may be issued hereunder bearing .interest at not more than three and one-half per cent.; for bonds or obligations which bear interest at three and one-half per cent., bonds may be issued hereunder bearing interest at not more than three per cent.; for bonds or obligations which bear interest at not more than three per cent., bonds may be issued hereunder bearing not more than the same rate of interest.
“Bonds issued hereunder and exchanged for Road District Refunding Bonds, Series B, shall not bear interest until January 1st, 1949, and from that date at such rate as may be prescribed by the General Assembly, but not exceeding three per cent, per annum.
‘ ‘ The bonds and obligations issued under the provisions of said act 11 of 1934, and not refunded under this amendment may be refunded in such other manner as the General Assembly may direct; but the bonds so refunded shall not share in the benefits of this amendment as all such benefits are reserved for bonds issued hereunder.
“Should the office of State Bank Commissioner be abolished by the General Assembly then the other officials mentioned in § 1 of said act 11 of 1934, shall continue to function as the Refunding Board.
“The Refunding Board shall prepare the forms of all bonds to be issued under this amendment, and fix the dates and maturities thereof.
“All bonds issued under this • amendment shall be signed with the facsimile or lithographed signature of the Governor and Secretary of State, and by manual signature of the Treasurer of State or his deputy, and sealed with the great seal of the state. The interest coupons attached thereto shall be signed with the facsimile signature of the Treasurer of State. Delivery of the bonds so executed shall be valid notwithstanding any change in such officers occurring after their execution.
“The Treasurer of State shall keep a record of all bonds issued hereunder containing full descriptions of said bonds'and the coupons thereto attached, including numbers, dates, amounts, maturities and rates of interest. Any bond issued hereunder may be registered by the Refunding Board in such manner as it may direct upon the request of the holder. Such bond when registered shall thereafter be non-negotiable until the registration is cancelled by an indorsement of the Governor and Treasurer of State.”

The portion of the ballot title relating to this section reads as follows:

“A proposed constitutional amendment to authorize the refunding of all bonds and obligations issued by the state of Arkansas under the terms of act No. 11 of the Second Extraordinary Session of the Forty-ninth General Assembly of the state of Arkansas, approved February 12, 1934; to provide that all bonds and obligations other than those bearing interest at three per cent, be refunded at a lower rate.”

Section 2 of the amendment reads as follows:

“Section 2. Refunding bonds issued under this amendment may be issued from time to time as they can be exchanged for bonds and obligations described in said act 11 of 1934, of equal face amounts, at the interest rates as provided in § 1 hereof. When bonds herein authorized can be sold at not less than par, bonds and obligations issued under said act 11 of 1934, and then outstanding, may be called as provided in said act 11 of 1934, or may be purchased on the market, with the proceeds from the sale of bonds issued hereunder. When bonds are purchased on the market the procedure in making such purchases shall conform as near as may be to the procedure prescribed by §§ 37 and 38 of said act 11 of 1934. Bonds can be issued for sale hereunder only when the proceeds are to be used for the purpose of calling or purchasing the bonds or obligations issued under said act 11 of 1934, and only when the annual saving in interest will be not less than one-fifth of the interest paid on the bonds or obligations called or purchased. Bonds issued for sale hereunder shall not be sold at less than par on the basis of interest at the rate of four per cent, per annum from the date of the bonds, but if they bear interest at less than four per cent, they may be sold for less than par, provided, the amount received and the interest to be paid shall be the equivalent of not less than par on a basis of interest at the rate of four per cent, per annum. All bonds issued under this amendment shall be- negotiable and the direct general obligations of the state of Arkansas, for the payment of which its full faith and credit and all of its resources are hereby irrevocably pledged. The funds coming into the custody of the Commissioner • of Revenues which are to be remitted to the paying agent or agents of the bonds issued hereunder are declared to be trust funds and dedicated to the payment of such bonds and the interest thereon. Such bonds shall be payable at a bank or trust company of New York, New York, or St. Louis, Missouri, or in both cities, to be chosen by the Refunding Board; provided, however, that bonds issued hereunder for the purpose of funding certificates of indebtedness issued to municipal improvement districts under the terms of act 11 of 1934, may be made payable at a bank or trust company in the city of Little Rock, Arkansas.

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Bluebook (online)
120 S.W.2d 364, 196 Ark. 929, 1938 Ark. LEXIS 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-hall-secretary-of-state-ark-1938.