Page:United States Statutes at Large Volume 45 Part 1.djvu/1535

 1484 Limitationonindebt- edn ess. Post, :1485. Limit ation on all e n- cumbrances. Sale price of bonds and debentures. Preferred stock. Proce eds f rom tolls . Use for operation, dividends or interest on obligations . Application to use of grantee, retiring obliga- tions, etc. On retiring all bonds, etc ., brid ge property, etc., in United States to be conveyed to Michi- gan, etc. Property in Canada to be conveyed thereto. Disposal of r evenues thereafter . Rates of toll to pro- vide for o pera tion . Acquisition author- ized by Michigan and Canada, etc ., after com- ple tio n. SEVENTIETH C ONGRESS. SESS. II. CH. 497 . 1929 . SEC. 5. The said Maynard D. Smith, his heirs, successors, and assigns, shall not encumber said bridge by the issue of stocks, bonds, notes, mortgages, debentures, or other evidences of indebtedness in an am ount w hich, inclu ding a ll pre vious encum brance s, whe ther retired or still outstanding, shall at any time exceed in the aggre- gate the cost as reported to and determined by the Secretary of war in accor dance with se ction 8 hereo f . Not less than two-thirds of all encumbrances or securities other than preferred stock issued against said bridge shall be first mortgage bonds, and not more than one-third may be debentures. None of said bonds issued against said bridge shall be sold for less than 92 per centum of their par value no r bear intere st at a fixed rate in exces s of 61/2 pe r centum per annum. None of said debentures issued against said bridge shall be sold for less than 90 per centum of their par value nor bear interest at a fixed rate in excess of 7 per centum per annum. Any preferre d stock issue d shall be at par plus accr ued dividend, shall represent value, and shall be entitled to accumulative dividends at not to exceed 7 per centum per annum. SE C. 6. The proceeds from tolls charged for the use of such bridge shall be used : First, to pay the maintenance, repair, and operation costs ; second, to pay dividends or interest on outstanding preferred stocks, bond s, notes, mor tgages, deben tures, or othe r obligations issued by the said Maynard D. Smith, his heirs, successors, and assigns ; and, third, 20 per centum of any funds then remaining shall be retained by the said Maynard D. Smith, his heirs, successors, and assigns, and the othe r 80 per cent um thereof sha ll be applied by said Maynard D. Smith, his heirs, successors, and assigns, in the purchase and retirement in accordance with section 5 hereof of said bonds, debentures, preferred stock, or other outstanding obligations legally incurred against said bridge. At the close of the fiscal year, when all bon ds, debenture s, preferred stock, or othe r obligations legally incurred against said bridge shall have been retired in accord- ance herewith, such bridge and the approaches thereto and all structures, property, property rights, and franchises, so far as the same are located within the United States, shall be conveyed by the said Maynard D. Smith, his heirs, successors, and assigns, without cost or expense, to the State of Michigan or to such municipality or agency of the State of Michigan as the legislature of said State may designate, and, so far as the same is situated within the Dominion of Canada, shall be conveyed, without cost or expense, to the Dominion of Canada or to such Province, municipality, or agency thereof as the Domin ion of Canad a may desig nate ; an d all right, title, and interest of said Maynard D. Smith, his heirs, successors, and assigns, therein shall then cease and determine. After said outstanding obligations of the said Maynard D. Smith have been retired, said 80 per centum of the net earnings shall be held by said Maynard D. Smith, and half thereof shall be turned over to the State of Michigan, or its designated municipality or agency, and half to the Dominion of Canada, or its designated municipality or agency, at the same time as the bridge is turned over. The rates of toll, if any, shall thereafter be so adjusted as to provide a fund of not to exceed the amount necessary for' the proper maintenance, repair, and operation of the bridge and its approaches under economical management. If said bridge shall not have become the property of the State of Michigan and the Domi nion of Canad a, or such ag encies as may be authorized by them, in accordance with the provisions of this section, within twenty years after the date that it is completed and formally opened to traffic, the said State of Michigan and the Dominion of Canada, or such agencies as may be authorized by them, shall have the additional r ight at any t ime thereafte r to acquire s aid bridge by

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