^50
Emergencies.
Issuance as neg o t i a b l e instruments*
Tax levy, etc.
Guar a n t e e of payment.
PUBLIC LAW 516-MAY 10, 1956
[70
STAT.
dates on which they respectively become due may be reserved to the Territory on such terms and conditions, which may include the payment of a premium, as may be prescribed by the law authorizing the issuance of the bonds. The Territorial legislature may provide means and authority whereby any such debt may be refunded, in accordance with any privilege of redemption reserved to the Territory, but any debt incurred for refunding purposes shall be payable in annual installments so scheduled as not to extend by more than six months the maturity of any portion of the debt so refunded. SEC. 4. The Territory of Alaska is authorized and empowered, notwithstanding any provision of the Organic Act or any other Act of Congress to the contrary, to borrow on the credit of the Territory from time to time, when the legislature of the Territory is not in session, such sums as may be necessary to meet emergencies for which funds are not made available by appropriation or otherwise, and to issue certificates of indebtedness of the Territory for such borrowings. Such certificates of indebtedness shall be issued only by authorization of the Territorial legislature, shall bear interest at not more than the commercial interest rate, shall be sold for not less than their principal amount, shall become payable at such time or times, not later than one month subsequent to the date of convening of the succeeding regular session of the legislature, as the Territorial treasurer or other officer designated by the law authorizing the issuance of such certificates may prescribe, and shall be subject to redemption by the Territory prior to their maturity. The principal amount of such certificates of indebtedness outstanding at any one time shall not exceed the sum by which the principal amount of the bonds then outstanding under this Act is less than $20,000,000 and shall not, in any event, exceed $200,000. The term "emergencies" as used in this section shall be defined by Territorial law and the Governor shall be empowered to apply, and shall determine the application of, such definition. The faith of the Territory shall be solemnly pledged to the payment of all such certificates of indebtedness according to their terms. SEC. 5. The bonds and certificates of indebtedness provided for in this Act may be issued as negotiable instruments and, when so issued, shall be treated as negotiable instruments for all purposes. Such bonds or certificates of indebtedness may bear such date or dates, may be in such denominations, may carry such registration privileges, may be executed by such persons and in such manner, and may be subject to such other terms and conditions as may be prescribed, consistently with the requirements of this Act, by the laws authorizing their issuance, and shall be offered for sale on a competitive basis. SEC. 6. The Territorial legislature shall provide in the law authorizing any such bonds or certificates of indebtedness, and thereafter, for the payment of the interest upon and the principal of such bonds or certificates of indebtedness as the same shall fall due, by the levy of an adequate tax or otherwise, and by seasonable appropriation for payment. If at the time when any such interest or principal falls due sufficient moneys have not been appropriated to pay the same, the Territorial treasurer shall pay such interest or principal out of the first revenues thereafter received by him that are applicable to the general funds of the Territory. SEC. 7. The Territory of Alaska is authorized and empowered notwithstanding any provision of the Organic Act or any other Act of Congress to the contrary, to guarantee payment of bonds issued by municipalities, school districts and public utility districts in Alaska for constructing, altering, equipping, or acquiring public improvements of the nature for which the Territory may issue bonds in an aggregate amount which shall not at any one time exceed the sum by
�
