tificates so reissued or issued and sold: Provided, further, That the provisions of this act shall not be so construed as to authorize a reissue of any bonds or certificates which were issued, the legality and validity of which is now questioned by legal proceedings in any of the courts of the Commonwealth And provided, further, That said reissued bonds shall not be liable to local taxation: And provided, further, That this act shall apply to municipalities the amount of whose legal indebtedness is limited in their respective charters of incorporation and supplement thereto as well as those not so limited. 19

19

Bonds issued since the 18th day of April, 1895, validated.

364. All bonds or other obligations of any county, city, borough, township, school district or other municipality or incorporated district within this Commonwealth, issued with the consent of the electors of such county, city, borough, township, school district or other municipality or incorporated district, in conformity with the requirements of the law, except that the same have been issued since the eighteenth day of April, Anno Domini one thousand eight hundred and ninety-five, in amounts in excess of two per centum of such last assessed valuation, be and the same are hereby made valid legal obligations of the respective county, city, borough, township, school district or other municipality or incorporated district, which has issued the same, and that the said respective county, city, borough, township, school district or other municipality or incorporated district shall be and is bound for the payment in full of said bonds or other obligations according to the tenor thereof. 20

Bona fide purchasers of school bonds or other securities. School district cannot deny statement to repudiate bonds.

365. "Where the president of a school board files with the clerk of quarter sessions of the county a sworn statement, showing the assessed valuation of taxable property in the district and the amount of its indebtedness, and that the

provisions of the act of April 20, 1874, P. L. 65, and its supplement of April 13, 1897, P. L. 17, have been complied with, the school district is estopped from setting up that the bonds were not issued in accordance with the provisions of the acts, as against a bona fide holder for value, who purchased them in reliance upon the facts set forth in the statement." 21

Where debt is lawful, though some provisions of the act not complied with, court will protect innocent purchasers of bonds. 366. When a school district issues bonds, payable out of assessments on property, and subsequently the assessment is declared illegal, the illegality of the assessment does not relieve the district from liability on the bonds.22 Illegality of assessment does not invalidate bonds.

367. A school district, desiring to borrow money for the purpose of erecting school houses or purchasing grounds whereon to erect school houses, must advertise in two newspapers for at least four weeks their intention to apply to the court of common pleas for its approval, as required by the act of April 21, 1871, P. L. 241, and procure the decree of the said court, before said district can file its statement in the office of the clerk, issue its bonds and levy the tax. But if the bonds have been issued without such proceedings and sold to innocent purchasers, if the debt so created is lawful and no proceedings have been instituted, until nearly three months after the sale of such bonds to restrain such issue, the court will decree the issue of such bonds, nunc pro tunc, when the statement is presented with all the formalities required by the acts of assembly.23

Court of common pleas has authority to authorize debt under act of 1871.

368. The several courts of common pleas of this Commonwealth shall have power to authorize the school direc

21. Parker Twp., School Dist. vs. Bruin Boro. School Dist. 13 D. R. 769, 1901.

22. Parker Twp. School Dist. vs. Bruin Boro. School Dist. 13 D. R. 769,

1901.

23. Phila. and Reading Coal and Iron Co. vs. Porter Twp. School Dist. 14 D. R. 581, 1905.

tors, of any school district within their respective jurisdictions, to borrow money for the purpose of erecting school houses, to an amount not exceeding five per centum upon the last preceded adjusted tri-ennial valuation of the property of said school district; and the said court may decree that such moneys shall be raised by bonds, mortgages or other security, at any rate not exceeding eight per centum, free from all taxation, and reimbursable at any period not exceeding twenty years from the date of such decree: Provided, That before exercising jurisdiction of the petition of the board of school directors, or a majority thereof for such decree, the said board shall produce to the court the consent, in writing, of a majority in number of the qualified electors of such district: And provided further, That no such decree shall be made until notice by advertisements in two papers of said county, if so many shall be therein published, shall have been given by the said board of directors, during at least four weeks, of their intention to make application for such decree. 24

Power of the court of common pleas to adjust indebtedness.

369. That the proviso of the act giving the courts of common pleas of this Commonwealth power to authorize school directors to borrow money, which requires them to produce to said court the consent, in writing, of a majority in number of the qualified electors of the district for whose use the money is wanted, be and the same is hereby repealed. 25

The act of 1871, above quoted, not repealed by the act of 1874.

370. "It was decided by this court, in an opinion filed by the late lamented Judge Cyrus L. Pershing, in the case of the City of Philadelphia vs. West Mahanoy Township School District (not reported), that the act of 1874 does not repeal the prior acts relating to school districts.

"If the act of 1874 did not repeal the act of 1868, neither, in our judgment, did it repeal the provisions of the school law, which expressly declares for what purposes and

in what way a debt may be created, and it is still necessary for the district desiring to borrow money for either of the two purposes mentioned in the act of 1854, to advertise in two newspapers for at least four weeks of their intention to apply to the court of common pleas for their approval, and procure the decree of the said court before said district can file its statement in the office of the clerk, issue its bonds and levy the tax." 26

Court may appoint an examiner to take testimony where petition is presented to borrow money.

371. On an application by school directors for permission to borrow money, it is lawful for the court to appoint an examiner to take testimony as to the facts alleged in the petition and remonstrance, and upon his report being filed, to direct the payment of a reasonable allowance for his services.

The school district may be directed to pay the allowance in the first instance, although the report of the examiner is favorable to the petition of the directors.27 Issuing of bonds in pursuance of centralization.

372. Should the board of school directors deem it necessary to issue bonds to purchase a site or sites, or erect a building or buildings, for the purpose of such centralization, then the election shall be conducted as provided in section three of this act, but in such case the ballots shall also have printed thereon: For levying a tax to purchase

.......

....site (or sites) and erect. . . . . .building (or buildings) for the centralization of schools, at a cost not to exceed $...... Yes, For levying a tax to purchase. . . . . .site (or sites) and erect. . . . . . building (or buildings) for the centralization of schools, at a cost not to exceed $. No; and if more votes are cast in favor of levying said tax for said purpose than against said proposition at such election, it shall be the duty of the said board of school directors, and the board of school directors is authorized to issue bonds and sell the same as provided by law, and to levy a special tax to provide for the payment of the same, together with

26. Phila. and Reading Coal and Iron Co. vs. Porter Twp. School Dist., 14 D. R. 581, 1905.

27. In re School Directors, 3 Kulp 59, 1884.

interest thereon, provided said levy shall not in any one year exceed five mills on the dollar valuation, and said bonds shall not bear more than five per centum interest, and shall not be sold at less than their face value.28

How to validate indebtedness created by school directors without assent of electors.

373. That whenever any school district in any borough or township of this Commonwealth shall have heretofore created an indebtedness for a lawful purpose, by action of the legal and proper officers thereof, such indebtedness being within the constitutional limit of seven per centum and in excess of two per centum of assessed valuation of such school district, and not having first obtained the assent of the electors thereof in favor of increasing such indebtedness as provided by law, it shall be lawful for the proper officers of such school district to cause to be submitted to the electors of such district the question of validating and giving binding force to such indebtedness theretofore attempted to be created.29

Duties of corporate authorities. Notice.

374. The corporate authorities of any such school district may, by resolution, signify their desire to validate and give binding force to such indebtedness, whereupon it shall be their duty to give notice during at least thirty days by weekly advertisements in the newspapers, not exceeding three in said district; and if no newspaper be published therein, by at least twenty handbills posted in the most public parts thereof, of an election to be held at the place or places of holding the municipal elections, in which such school district may be, on a day to be by them fixed, for the purpose of obtaining the assent of the electors thereof, to the making valid and giving binding force to such increase of indebtedness. Said notice shall contain a statement of the amount of the last assessed valuation, of the amount of the existing debt, of the amount and percentage of the increase proposed to be made valid, and of the purposes for which the indebtedness was created and the money used.30 28. Act of April 25, 1901, Sec. 4, P. L. 105.