To amend chapter 34, General Statutes (being chapter XXVIII of
Revised Statutes of 1866), entitled "Interest."

Be it enacted by the Legislature of the state of Nebraska:

That chapter 34 of General Statutes, being chapter XXVIII of Revised Statutes of 1866, be and the same is amended to read as follows:

interest to be

SECTION 1. Any rate of interest which may be agreed what rate of upon, not exceeding ten dollars per year upon one hun- valid. dred dollars shall be valid upon any loan or forbearance of money, goods, or things in action; which rate of interest so agreed upon may be taken yearly, or for any shorter period, or in advance, if so expressly agreed.

SEC. 2. Interest upon the loan or forbearance of same. money, goods, or things in action, shall be at the rate of seven dollars per year upon one hundred dollars, unless a greater rate, not exceeding ten per cent per annum, be contracted for by the parties.

decrees.

SEC. 3. Interests on all decrees and judgments for Interest on the payment of money, shall be from the date of the judgments and rendition thereof, at the rate of seven dollars upon cach one hundred dollars annually, until the same shall be paid; Provided, that if said judgment or decree shall

In other cases.

Consequences of usury.

Agent of borrower and lender.

be founded upon any contract, either verbal or written, by the terms of which a greater rate of interest, not exceeding the amount allowed by law, than seven per centum shall have been agreed upon, the rate of interest upon such judgment or decree shall be the same as provided for by the terms of the contract upon which the same was founded.

SEC. 4. On money due on any instrument in writing, or on settlement of the account from the day the balance shall be agreed upon, on money received to the use of another, and retained without the owner's consent, express or implied, from the receipt thereof, and on money loaned or due, and withheld by unreasonable delay of payment, interest shall be allowed at the rate of seven per cent per annum. Unsettled accounts between parties shall bear interest after six months from the date of the last item thereof.

SEC. 5. If a greater rate of interest than is hereinbefore allowed shall be contracted for or received, or reserved, the contract shall not, therefore, be void; but if in any action on such contract, proof be made that illegal interest has been directly or indirectly contracted for, or taken, or reserved, the plaintiff shall only recover the principal, without interest, and the defendant shall recover costs; and if interest shall have been paid thereon, judgment shall be for the principal, deducting interest paid: Provided, the acts and dealings of an agent in loaning of money shall bind the principal, and in all cases where there is illegal interest by the transaction of the agent, the principal will be held thereby as if he had done the same in person. Where the same person acts as agent for the borrower who obtains the money from the lender, he shall be deemed to be the agent of the loaner also.

Persons may be SEC. 6. Any person charged with taking illegal inanswer under terest may be required to answer touching the same, on

required to

oath.

oath, in any civil proceeding.

pendent on

SEC. 7. Relief to a complaint in case of an usurious Relief not deloan, may be given without payment or tender by him tender of prinof the principal sum.

cipal.

actions for

SEC. 8. Any officer or agent of a person or a corpora- Witnesses in tion, whether interested or not, may be summoned as usury. witness in any action for usury against such person or corporation, and required to disclose all the facts of the case, but the testimony of such witness, or the answer of the party as required in section 6, shall not be used. against such witness or party in any criminal prosecution for perjury.

be deemed by

SEC. 9. When in any law, or in any instrument in When rate to writing specifying a rate of interest, no period of time the year. is mentioned for which such rate is to be calculated, it shall be deemed to be by the year.

warrants and

SEC. 10. All warrants issued by the proper authori- Interest on ties of the state, county, city, town, or other municipal bonds. subdivision less than a county, shall draw interest from and after the date of their presentation for payment, at the rate of seven per cent per annum, and all bonds issued by any county, city, township, precinct, or school district, shall not draw interest at a rate exceeding eight per cent per annum.

ucational lands

SEC. 11. The rate of interest fixed by this chapter Interest on edshall not affect interest on purchase money of school, Delinquent university, and agricultural college lands, or on lands delinquent or sold for the non-payment of taxes.

taxes.

Rev. Stat. 241.

SEC. 12. Chapter 34, of general statutes, being chap- Acts repealed. ter XXVIII of revised statutes, 1866, and all other acts Gen. Stat. 446. and parts of acts conflicting with this act be and the

same are hereby repealed.

Approved, February 27th, A.D. 1879.

Precincts and

towns may issue bonds.

Petition.

To authorize precincts, townships and towns, to vote bonds to aid works of internal improvements, and to repeal section seven of chapter thirty-five of the general statutes entitled "Internal Improvements."

SECTION 1. Any precinct, township, or town (less than a city of the second class), organized according to law, is hereby authorized to issue bonds in aid of works of internal improvements for public use, viz: Railroads, roads, bridges, court houses, and draining of swamp and wet land, to an extent not exceeding ten per cent of the assessed value of the taxable property within such precinct, township, or town, in the manner hereinafter directed, viz: First, a petition signed by not less than ten freeholders of the precinct, township, or town, shall be presented to the county commissioners, or board authorized by law to attend to the business of the county within which such precinct, township or town is situated. Said petition shall set forth the nature of the work contemplated, the amount of bonds sought to be voted, the rate of interest, and the date when the principal and interest shall become due; and the said petitioners shall give bond, to be approved by the county commissioners, for the payment of the expenses of the election, in the event that the proportion [proposition] shall fail to receive

a majority of the votes cast at the election. Second, upon
the reception of such petition, the county commissioners

shall give notice and call an election in the precinct, Election.
township, or town, as the case may be. Said notice,
call, and the election, shall be governed by the law, regu-
lating the election for voting bonds by a county.

SEC. 2. If two-thirds of the votes cast at said elec- Duties of county officers. tion shall be in favor of the proposition, the county commissioners, or board, shall, without delay, cause to be prepared and issue the bonds in accordance with the petition and notice of election. Said bonds shall be signed by the chairman of the board, or person authorized to sign county bonds, and attested by the county clerk, under the seal of the county. Said bonds shall state for what purpose issued; the amount, and when payable, interest and when payable, and the number of each bond. The county clerk shall enter upon the records of the board the petition, bond, notice, and call for the election, canvass of the vote, the number, amount, and interest, and date at which each bond so issued shall become payable; and the county clerk shall cause such bonds to be registered in the office of the secretary of state, and state auditor, as required by law.

to levy and collect tax to pay principal

SEC. 3. The county commissioners, or persons charg- Proper officers ed with levying the taxes for the county, shall each until the bonds voted under authority of this act be and interest

year,

paid, levy upon the taxable property in the precinct, township, or town, a tax sufficient to pay the interest and five per cent of the principal of bonds issued under this act; and at the tax levy, preceding the maturity of any such bonds, levy an amount sufficient to pay the principal and interest due on said bonds.

when due.

SEC. 4. All proceedings in relation to such election proceedings. and the issuance of the bonds shall be in accordance

with the provisions of this act.