charge against the property improved and against the funds collected from the assessment levied against the property improved, but shall not be the general obligation of the municipality, nor shall such municipality be in any way liable to the holders of such bonds in the case of failure to collect the same; such bonds when issued shall convey and transfer to the owners thereof all right, title, and interest in and to the assessment, and the lien upon the respective lots or parcels of land herein provided for, which lien and assessment shall stand as security for such bonds or coupons to enforce the collection thereof by foreclosure in any court of competent jurisdiction. The first bond or coupon holder who institutes a foreclosure suit in any court against any property assessed, shall only be entitled to have the proceeds of said suit applied pro rata to the payment of his own bonds and the bonds held by others so that not more than one foreclosure suit shall be brought against any one lot or parcel of land. The costs of such foreclosure suit, including a reasonable attorney's fee, where the first bond or coupon holder is represented by an attorney in the foreclosure suit, shall be ascertained by the court and deducted from the proceeds of said suit before it is pro rated, as herein provided. Provided, however, that this section shall become void and inoperative from and after the adoption by the people of any constitutional amendment authorizing or permitting cities and towns of less than six thousand population to exclude from the constitutional debt limit of said cities or towns indebtedness thereafter incurred for sewer, street, sidewalk, or other improvements, whether of a like or different kind, to the extent that the cost thereof has been or is proposed to be assessed against the property benefited thereby.

Section 43. PROCEEDS OF BOND SALE: HOW APPLIED: The proceeds from the sale of bonds authorized to be issued by this article shall be applied only to the payment of the cost of the improvement or improvements designated in the ordinance providing for their issue, but should there be any surplus from any bond issue over and above such cost, it shall be applied to the payment of the principal of the bonds.

Section 44. ASSESSMENTS UNDER DIFFERENT ORDINANCES MAY BE GROUPED FOR THE ISSUE OF BONDS: Any municipality desiring to issue bonds under this article shall have power to group improvements under two or more improvement ordinances and make one issue of bonds under this article based on the combined estimated costs or combined assessments in respect of such improvements.

Section 45. DEPOSIT OF FUNDS ARISING FROM ASSESSMENTS; HOW DRAWN OUT:-The official charged with the duty of collecting assessments shall keep all sinking funds in some bank or banks paying interest on time deposits to be des

ignated by the governing body of said municipality, and shall provide and keep a separate sinking fund account for each bond issue. If said officer shall fail to provide and keep said separate sinking fund account for each such bond issue in said bank or banks or shall divert any of such funds to other uses or shall fail to pay any bond or bonds or the interest thereon properly payable from said funds, when available, any tax payer of the issuing municipality or any holder of bonds of the series affected by such diversion or failure, whether of bonds heretofore issued or to be hereafter issued, shall have the right to apply for a writ of mandamus, requiring said official to take such action, to any court of competent jurisdiction and said court shall on proof issue and enforce said writ.

Section 46. OFFICERS COLLECTING ASSESSMENTS LIABLE ON OFFICIAL BONDS FOR FUNDS:-The official charged with the duty of collecting assessments shall be required to give bond, including the amount of any official bond which may have been required of him by law, equal to not less than five per cent of the total amount in said sinking funds provided for in the preceding section and said bonds shall be increased and may be diminished from time to time in order to comply with this provision; the cost of said increased bond shall be paid by the municipality. Said official shall be liable on his official bond to any holder of the bonds authorized to be issued under this article, for any loss or injury to such holder caused by the diversion by said officer of any fund or part thereof, to the payment of any bonds or coupons, or indebtedness of the municipality, other than the bonds and interest coupons entitled and indebtedness herein authorized to be paid out of said fund or by the use or misappropriation by said officer of any part of the funds out of which said bonds required and contemplated in this article to be paid for any other purpose than provided for in this article; or for the benefit of the municipality or others. All members of the governing body or bodies of the municipality, who shall, by their vote, or in any other manner, cause, aid, or encourage any such diversion, use or misappropriation of the funds out of which the bond holders are entitled to be paid, for any other purposes than that authorized and required in this article, whereby loss or injury to the bond holders or any of them is caused, shall be jointly and severally liable to such bond holders injured, to the extent of such loss or injury. Any failure by any of the above officials to keep all funds collected from assessments in separate sinking funds in the bank or banks as provided in this article or to retire bonds when due out of such funds when available shall be construed as a diversion or misappropriation and any bond holder of a bond in the series affected, may, at any time enter suit against said official or officials in any court of competent jurisdiction for the satisfaction of such loss and injury.

Section 47. REDEMPTION OF BONDS:-At any time when the amount of any particular fund shall, with its accumulations, equal the amount of any one of the outstanding bonds and accrued interest entitled to payment out of such fund, the governing body of such municipality shall have authority to redeem any and all such bonds that may be presented for redemption at such times thereafter as the holders thereof may desire to present the same for redemption.

Section 48. REFUNDING TO PARTIES PROPORTIONATE AMOUNT OF EXCESS:-In the event the amount collected from the assessment under any improvement ordinance shall exceed the total cost and expense of the improvement, there shall be refunded to each of the parties affected by said assessment a proportionate amount of the excess upon demand made therefor by said parties within twelve months after maturity or payment of the bonds authorized by this article.

Section 49. LIMITATION FOR PRESENTING CLAIM:If such claims be not presented within twelve months from the date of the maturity or payment of the bonds, they shall be forever barred, and such amount shall be converted to the general revenue fund of the municipality.

Section 50. MUNICIPALITIES CONSOLIDATED: OBLIGATIONS OF CONTINUING MUNICIPALITY:-When any two or more municipalities are consolidated by special act, or under the general law, all assessment bonds upon property for improvements or obligations issued by such municipalities shall be the primary obligation of the municipality which continues its existence; which municipality may make all assessments and do any and all acts necessary to complete the improvements or contracts made by the municipality absorbed, and shall issue its bonds for said improvements when completed, as was authorized by the municipality absorbed, and such municipality shall assume and be subject to all liabilities and rights of action of such absorbed municipality.

ARTICLE V. PROVISIONS APPLICABLE TO ALL BONDS.

Section 51. PLACE OF PAYMENT OF BONDS:-All bonds may be made payable at the office of the State Treasurer of Alabama, or at such other places as the proper governing body may designate.

Section 52. MATURITY OF BONDS:-The principal of each issue of bonds issued under this code except bonds issued under Article IV hereof shall be payable in annual installments, none of which shall be more than twice as large as the smallest prior installments, and the first of which shall be payable not later than three years after the date of the bonds. The last in

stallment, except in the case of deficiency, funding or refunding bonds, shall be payable within the period of usefulness of the improvement or property for which the bonds are issued estimated according to section 53 hereof. In the case of deficiency, funding or refunding bonds the last installment shall be payable not later than thirty years from the date of the bonds, and in the case of refunding bonds the last installment shall be payable not earlier than fifteen (15) years from the date of the bonds. In no event shall the last installment of any bonds issued under this code be payable more than thirty years from the date of the bonds. If all of the bonds of an authorized issue are not issued at the same time, the bonds at any one time outstanding shall mature as aforesaid.

Section 53. PERIOD OF USEFULNESS:-The governing body shall estimate the period of usefulness of the improvement or property for which the bonds are issued and such estimate of the governing body shall be conclusive.

Section 54. REGISTERED OR COUPON BONDS:-Bonds issued under this code may be issued either in registered or coupon form. If they are coupon bonds, they may be made registerable either as to principal or as to both principal and interest. The governing body may appoint a bank or trust company within or without the State of Alabama as registrar and provide for the registration of registerable bonds and the transfer of registered bonds by such registrar.

Section 55. SELLING PRICE:-All bonds issued under this code shall be sold by the governing body at not less than 95% of their par value together with accrued interest from the date of the bonds to the date upon which they are delivered and paid for.

Section 56. ADVERTISEMENT AND SALE:-All bonds issued under this code shall be sold to the highest bidder at public sale unless sold within thirty days after failure to receive any legally acceptable bid at a duly advertised public sale in accordance with this section. A public sale shall be either on sealed bids or at auction. The notice of a public sale shall state whether the sale is to be on sealed bids or at auction and shall also state the amount of the bonds to be sold, the maturities thereof, the amount payable at each maturity, and either the rate of interest which the bonds are to bear or that the bidders are invited to name the rate of interest in their bids, and shall also state the time and place of sale or for submitting sealed bids. Such notice shall be published once in each of two consecutive weeks in a newspaper published in the municipality issuing the bonds, or there is no such newspaper, or if the sale is of county bonds, in a newspaper published in the county issuing the bonds or in which such municipality is situated. The first of such two publications

shall be not less than ten days before the last date for submitting bids, if the sale is on sealed bids, or the date of sale, if the sale is at auction, and if there is no newspaper meeting the above requirements the notice shall be posted at three public places in the county or municipality issuing the bonds for at least a like period of ten days. The governing body shall have the right to reject all bids. Nothing herein contained shall prevent the issue of bonds under Article IV hereof to the contractor in accordance with the provisions of that article.

Section 57. HIGH BIDDER; HOW DETERMINED:-In determining the highest bidder for bonds offered for sale, the net interest cost to the county or municipality as shown in standard bond value tables shall govern; provided, the determination of the governing body of such county or municipality shall be final.

Section 58. APPLICATION OF PROCEEDS OF SALE:The proceeds of the sale of any bonds hereafter issued shall be used for the purposes for which the bonds are issued; provided, however, that if such bonds are sold at a premium, the amount realized from such premium shall be applied to the payment of the principal of said bonds, and if for any reason any part of the proceeds of the sale of such bonds, other than premiums, be not necessary for such purposes, such unexpended part of such proceeds shall be applied to the payment of the principal of the said bonds.

Section 59. BONDS INCONTESTABLE THIRTY DAYS FROM DELIVERY:-Any bonds reciting that they are issued pursuant to this code shall in any action or proceeding involving their validity be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delvered in conformity herewith, and with all other provisions of statutes applicable thereto and shall be incontestable, anything herein or in other statutes to the contrary notwithstanding, unless such action or proceeding is begun before or within thirty days after the day upon which the bonds are delivered and paid for.

Section 60. SPECIAL TAX FOR PAYMENT OF BONDS: In every county and municipality the officers charged by law with the duty of levying taxes shall annually, without further authority, levy a tax, insofar as such a tax is or may be permitted by the present or any future provisions of the constitution, sufficient to pay (a) bond interest falling due in that year of all bonds issued after the date of approval of this act; (b) the principal of all serial bonds, issued after the date of approval of this act, falling due during the current fiscal year; (c) the sinking fund appropriation for the current fiscal year, if any, required by any agreement heretofore made or by any proceedings heretofore taken to establish a sinking fund for the payment of bonds now outstanding; (d) such arrears of interest, principal