Public Law 74–133

That the incorporated town of Seward, Territory of Alaska, is hereby authorized and empowered (a) by contract or contracts, or by its own agents and employees, or otherwise than by contract, to construct a municipal electric system, together with all parts thereof and appurtenances thereto necessary or convenient for the generation, production,

To acquire land and water rights.

transmission, and distribution of electric energy, and to acquire by gift, purchase, or the exercise of the power of eminent domain, lands, easements, or rights in land or water rights in connection

Operation, Etc.

therewith; (b) to operate and maintain said system for its ownuse and benefit and for the use and benefit of public and private consumers or users within and without the territorial boundaries of said town; (c) to issue its bonds to finance in whole or in part the

Bond issue.

cost of the construction of said system; (d) to prescribe and collect

Service fees.

rates, fees, or charges for the services, facilities, and commodities furnished by said system; (e) to pledge to the punctual payment of

Pledge payment of obligations.

said bonds and interest thereon all or any part of the gross or net revenues of said system (including improvements, betterments, or extensions thereto thereafter constructed or acquired); (f) to enter

Enter contracts.

into contract with the United States of America or any Federal agency created or continued by or pursuant to the Emergency Relief Appropriation Act of 1935; and (g) to subscribe to and comply

Comply with prescribed rules, etc.

Ante, p. 115.

with all rules and regulations prescribed or continued by the President of the United States of America pursuant to the Emergency Relief Appropriation Act of 1935. The common council of said

Construction costs.

town in determining the cost of the construction of said system may include all costs and estimated costs of the issuance of said bonds, all engineering, inspection, fiscal and legal expenses, and

Interest.

interest which it is estimated will accrue during the construction period and for six months thereafter on money borrowed or which it is estimated will be borrowed pursuant to this Act.

Sec. 2.

The construction of said system may be authorized under

Common council of town may authorize construction and bond issue.

this Act, and bonds may be authorized to be issued under this Act by resolution or resolutions of the common council of said town. Said bonds shall bear interest at such rate or rates not exceeding

Interest rate, maturity, etc.

6 per centum per annum, payable semiannually, may be in one or more series, may bear such date or dates, may mature at such time or times not exceeding forty years from their respective dates, may be payable in such medium of payment, at such place or places, may carry such registration privileges, may be subject to such terms of redemption, with or without premium, may be executed in such manner, may be in such form, either coupon or registered, may contain such terms, covenants and conditions, and may be declared or become due before the maturity date thereof, as such resolution or subsequent resolutions may provide. Said bonds shall be sold for

Bond sale, etc.

not less than par and may be sold at either public or private sale. Pending the preparation of the definitive bonds, interim receipts or

Interim receipts; certificates.

certificates in such form and with such provisions as the common council of said town may determine, may be issued to the purchaser or purchasers of bonds sold pursuant to this Act. Said bonds and

Negotiability.

interim receipts or certificates shall be negotiable for all purposes. Said bonds bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all the persons whose signatures appear thereon shall have ceased to be officers of the town.

Sec. 3.

Any resolution or resolutions authorizing the issuance of

Covenants in resolution authorizing bond issue.

bonds under this Act may contain covenants as to (a) the purpose or purposes to which the proceeds of sale of said bonds may be applied and the use and disposition thereof, (b) the use and disposition of the revenue of said system, including the creation and maintenance of reserves, (c) the transfer from the general funds of the town to the account or accounts of said system a sum or sums of money for furnishing such town or any of its departments, boards, or agencies with the services, facilities, and commodities of said system, (d) the issuance of other or additional bonds payable from the revenue of said system, (e) the operation and maintenance of said system, (f) the insurance to be carried thereon and the use and disposition of insurance moneys, (g) books of account and the inspection and audit thereof, and (h)‘the terms and conditions upon which the holders of said bonds or any proportion of them or any trustee therefor shall be entitled to the appointment of a receiver by the District Court for the Territory of Alaska, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of said system, operate and maintain the same, prescribe rates, fees, or charges, and collect, receive, and apply all revenue thereafter arising therefrom in the

Enforcing provisions.

same manner as the town itself might do. The provisions of this Act and any such resolution or resolutions shall be a contract with the holder or holders of said bonds, and the duties of the town and of its common council and officers under this Act and any such resolution or resolutions shall be enforceable by any bondholder, by mandamus or other appropriate suit, action, or proceeding in any court of competent jurisdiction.

Sec. 4.

The common council of said town shall prescribe and collect reasonable rates, fees, or charges for the services, facilities, and commodities of said system, and shall revise such rates, fees, or charges from time to time whenever necessary so that said system shall be and

Rate provisions.

always remain self-supporting. The rates, fees, or charges prescribed shall be such as will produce revenue at least sufficient (a) to pay when due all bonds and interest thereon, for the payment of which such revenue is or shall have been pledged, charged, or otherwise encumbered, including reserves therefor, and (b) to provide for all expenses of operation and maintenance of said system, including reserves therefor.

Sec. 5.

No holder of any bond issued under this Act shall have the right to compel the levy of a tax by said town to pay the principal of or interest on such bonds. All bonds issued under this Act shall be payable solely from the. revenues pledged to the payment thereof and shall contain a recital to that effect. Such bonds may be issued notwithstanding any debt or other limitation or restriction prescribed by any other law.

Sec. 6.

This Act shall become effective thirty days after its passage: Provided, however,

Proviso.

Restriction on exercise of powers granted.

Sale by Seward Light and Power Company of holdings.

That none of the powers herein granted to the said town of Seward, Alaska, shall be exercised by said town in the event that the Seward Light and Power Company, a corporation, shall within one week after a copy of this Act is served on said Seward Light and Power Company, offer in writing to sell and convey to the said town of Seward all right, title, and interest in and to its electric generating plant or plants, electric distributing system, pipe lines, and water rights now owned by it and used and employed in supplying electric energy to the inhabitants of said

Price.

town, said offer of sale to be for the sum of $75,000, and to guarantee that delivery of said title, free from encumbrance and debt of any kind, shall be made to said town upon payment of said sum, anytime within six months from date of said written offer to sell: Provided further,

Time limitation.

That said offer and agreement to convey title must be delivered by said Seward Light and Power Company, to the town clerk of said town of Seward, Alaska, within the time specified above. Service of copy of this Act on the Seward Light and Power Company shall be made by delivery thereof to its president, S. M. Graff, or any other officer of the corporation: And provided further,

Bond issue authorized.

That in the event the said Seward Light and Power Company offers to sell and convey its properties as provided for in this section? the said town is authorized to purchase such properties and to issue bonds for such purpose in an amount not to exceed $75,000, such bonds to be issued in the manner provided for in this Act.