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orders of the directors. TThenever there is a balance in the
hands of a township treasurer to the credit of a district, said bal-
ance, or any part thereof must, in like manner, be paid out at any
time upon presentation of legal orders from the directors. But if
a district has no funds to its credit, in the hands of the township
treasurer, the latter cannot, of course, honor any order drawn by
the directors of said district, nor can the directors of said district
lawfully draw any order on the treasurer in such case until their
schedule has been filed, and apportionment made, as required in
the last clause of section 53 of the act. Township treasm-ers must
be careful to cash no orders unless legally drawn, and duly sign-
ed. All orders must be in vpriting — must specity the particular
use or purpose to which the money is to be applied — and must
be signed by the president and clerk of the board of directors, or
by a majority of said board. Treasurers will reject aU orders
which do not C(»nform to these conditions. For all orders receipts
mast be taken, and said orders and receipts must be carefully
filed in the office of the township treasurer. Funds must in no
case be paid out on verbal orders.

For refusal to pay any just and legal order of a board of di-
rectors, funds being in his hands belonging to the district, suf-
ficient therefor, the township treasurer is hable to an action to
compel him to pay such order ; which action may be brought by
the' directors, in their corporate name, against both the trustees



OTnCIAL A2s~D .jrDICIAL DECISIOIS'S. 149

and treasurer. But it is cleai-ly the intention of the la\r, (section
67) that orders shall be drawn in favor of third parties, or the
persons to whom the money is actually due, and tor iadebted-
ness already incurred, and that treasurers should pay the money
to such actual creditors directly, and not to the directors them-
selves. There may be special cases in which a different course
would be justifiable, but the foregoing is the plain intention of
the law, and the only safe course. If funds may be drawn from
the ti'easurer before due, and to he expended at some fdtttre time,
it is plain that aE the funds of the district might be so transferred
from the treasurer to the directors, and the protection afforded by
the bond of the treasurer be wholly lost, for school directors are
not authorized to act as the custodians of any school fands what-
ever. There would be no certain check against the conversion of
the funds of the district to the private use or benefit of the di-
rectors. An interpretation that is liable to these grave objec-
tions cannot be the true one.

15. 2lay Institute Suit. — ^If default be' made by the borrower
in the payment of interest or principal, the township treasnrer
may institute suit for the recovery of the same without an order
from 'the board of trustees. It is to be presumed that he will
avail himself of the advice and approval of the trustees, and ob-
tain an order from them before commencing an action : bnt such
are his legal relations and obligations to the township fund that,
when circumstances reqnire. he may. 1 think, proceed in the
premises without a formal order Ironi the board of trustees. This
is evident from section 61 of the act, which makes it the dnty of
the treasurer to proceed to the collection of all claims due the

- township, when they mature ; and if any loss accrues from his
neglect iu this particular, he and his securities become liable (see
§ 64), unless he acted, or was warranted in his failure to act, by
an order of the board of trustees, entered upon their journal and
subscribed by the president and clerk ; in which case, if loss
accrues, the trnstees become responsible. In case of loss by the
neglect, he is responsible for failing to collect, in proper time,
the debts due the township, unless he was ordered, in the manner
prescribed above, not to collect. { §§ 61 and 64.)

16. Interest on Balances due Teachers. — 'By section 54 of
the act, teachers' schedules are declared payable on the first
Mondays of Apnl and October of each year, and any portion



150 SCHOOL LAWS OF ILLINOIS, WITH

of the amount certified in said schedules to be due, and re-
maining unpaid, after said dates, draws interest at the rate of ten
per cent, per annum until paid. And township treasurers are re-
quired to allow and pay said rate of interest upon all such un-
paid balances ; and they are further required to pay said bal-
ances and the interest accruing thereon, out of the first moneys
in their hands, or coming into their hands, to the credit of the
proper district, and not otherwise specifically appropriated. Jus-
tice to teachers, whose contracts are, at best, but credit contracts,
as well as the positive requirements of law, demand the prompt
liquidation of unpaid schedules, with accrued interest as aforesaid,
A schedule thus certified is a liquidated account, and, in contem-
plation of law and the contract between the directors and the
teacher, should be paid at the time provided by law for the dis-
tribution of school funds, unless they otherwise agree or contract.
The directors who make the contract with the teacher have the
power to provide the means of payment, and are supposed to con-
tract with reference to the means to be at their disposal at the
time when, by the contract, the teacher should be paid. If they
have been negligent in providing the means, or if there has been
default in collecting, or if from any other cause they are unable
to pay at the proper time, they stand, in their corporate capacity,
like other debtors, and should pay interest. Their liability, how-
ever, is a corporate liability, and not a personal liability ; and the
interest should be paid, with the principal, out of the funds be-
longing to the district. All orders drawn by directors for such
unpaid balances due teachers, must include the accrued interest
thereon.

IT. Must settle with Directors. — Township treasurers must
furnish, on demand, to each board of directors in their respective
townships, on the first Mondays of April and October of every
year, a written statement or exhibit, showing the condition of the
account of each district, and the amount of funds in their hands,
as shown by their books, to the credit of and belonging to each
district respectively. Said statement must be duly certified and
signed by the township treasurer in his official capacity, and, for
failino- or refusino^ to render such statement, on demand^ treasurers
are liable to the penalties provided in the act for neglect of official
duty. (§ 63.)

18. Fay for Clerical Services. — It is the right of township



OFFICIAL AND JUDICIAL DECISIONS. 151

treasurers to demand, and the duty of boards of trustees to allow,
a fair and reasonable amount annually, for their services as clerks
of said boards, t© be paid out of the township funds. The
amount so allowed should be deducted by the trustees before ma-
king the apportionment required by section 34. The duty of
trustees to make an appropriation as aforesaid, is as peremptory
as any other duty enjoined upon them by law, and in default
they are liable, and treasurers have redress. (§ 72.)

19. Garnishee of Money Due on Schedules, — Creditors of
teachers have raised the question whether money due on sched-
ules — both schedules and money being in the hands of the treas-
urer — can be taken by the garnishee process. There is no
authoritative decision of our courts directly upon the question.
Some of our circuit courts have held that money in the hands
of a school treasurer, unappropriated to a particular creditor or
on a designated schedule, could not be garnisheed. Others have
held that if the money has been appropriated to the payment of
a particular schedule it may be garnisheed. It must remain for
the courts to determine under what circumstances, if any, money
due teachers can be garnisheed.

20. Schedules Known to he Illegal or Fraudulent may he Re-
jected.- — If directors employ a teacher who has not a certificate,
as required by law, and the treasurer knows the fact, yet the di-
rectors certify to his schedule, the treasurer cannot pay it. It
would be a case of open violation of a positive requirement of the
law, and should not be overlooked. Known and palpable fraud
always vitiates. This does not conflict with the decision else-
where given, that treasurers cannot, as a general rule, go behind
a schedule and traverse the certificate of the directors. Known
deception, or violation of law, cannot be disregarded.

21. Must File Permits of Transfer. — Under the amended
law, written permissions allowing the transfer of pupils from one
district to another must be tiled with the township^reasurer, in-
stead of the teacher as heretofore ; and, as such permits now con-
stitute the only evidence of consent, they must be carefully pre-
served by township treasurers, for their guidance in the payment
or rejection of separate schedules. Schedules of transferred pu-
pils cannot hereafter be accepted and paid without such written
evidence of consent, of which fact treasurers should notify the di-
rectors of their townships, that, having due notice, they may



152 SCHOOL LAWS OF ILLINOIS, WITH

govern themselves accordingly. The written permits are a con-
dition precedent, and should be filed as aforesaid before the pu-
pils are received into the school of the district to which they are
transferred. This is the plain requirement of the law, by a strict
compliance with which all doubt in respect to the payment of
separate schedules will be removed. (§ 35.)

22, Sejparate Schedules. — Where schools are composed of
pupils from different districts, the amount certified in each sepa-
rate schedule to be due must be computed upon the basis of the
total number of days' attendance of all the schedules of said
school. Should the whole amount due the teacher be inserted in
each of such separate schedules, or should the amount certified
be computed upon any other basis than that fixed by law, town-
ship treasurers, knowing such to be the fact, may reject such
schedules. Separate schedules made out and returned according
to law, and the several amounts computed and certified as afore-
said, must be accepted and paid as promptly as the regular sched-
ules of the district in which the school is taught, (§ 35.)

23, Must Change Map., etc. — The mode of forming union
districts is clearly pointed out in section 35 of the amended law.
Upon receiving a certified fecord of the proceedings prescribed in
said section, the action of the board of school directors should be
immediately recognized by the trustees, and the township treasurer
must change the map of the township in accordance with said
action, and file said map with the clerk of the county court, as
required by law. After the necessary steps have been taken by
the board of directors, as aforesaid, the trustees and treasurer can
not neglect, refuse, or delay to ratffy the action of the directors,
by altering the township map and filing the same, as aforesaid.
( § 35.) But even if the trustees should refuse to change the map
of the township, in accordance with the act of consolidation, under
section 35, the validity of that act would not be thereby impaired,
it being complete and conclusive in itself; for, the object in requi-
ring a plat of the district to be furnished, properly certified, to the
county clerk, is to enable the clerk correctly to extend the tax
against the tax-payers of the district, and the provision is only direc-
tory.^ and it can form no objection in a collateral proceeding.
{Munsonvs. Minor ^ 22 lU.^ 597.)

24, Town'ihijp Reports. — The statistical report, required by
section 36 of the act, must be prepared by the board of trustees,



OFFICIAL AND JUDICIAL DECISIONS. 153

or they must cause tlie same to be done. The trustees have a
right to require the township treasurer to furnish said report, and
they do in fact, as a general rule, impose that duty upon him.
Among the items that must always be embraced in said statisti-
cal report, is the enumeration of persons under twenty-one years
of age, a knowledge of which is essential to enable the trustees to
apportion one-half of the school fund among the districts. Said
statistical report is required to be made annually, and as the treas-
urer retains a copy thereof, the trustees can never be without the
latest enumeration upon which to make the apportionment afore-
said. It will thus be seen, and must be distinctly understood,
that the duty of taking the census of children under twenty-one
years of age, or causing the same to be done, is imposed by law
upon the trustees, and not upon boards of directors, and that the
trustees may lawfully require that duty to be performed by the
township treasurer. A separate enumeration of persons under
twenty-one must be made for each district. The vital importance
of the punctuaUrendition of said report and enumeration will be
seeii from the heavy penalty consequent upon failure, being no
less than the forfeiture of the whole of the public funds for the
next ensuing year. The forfeiture here prescribed will not be
enforced for default heretofore made in rendering said annual re-
ports, for the reason that the requirements of the amended law
were not generally known, but in future, township trustees and
treasurers will be held to a strict accountability, and must not
expect to escape the legal consequences of their neglect. (§ 36. )

25. To Order JElections. — If a board of school directors fail to
give the required notice of election, and no election for directors
is held on the first Monday of August, the township treasurer
must, within ten days thereafter, order such election. He must
also order an election, as aforesaid, to fill vacancies in boards of
directors, when the latter fail to order such election as required
bylaw. (§42.)

26. Must Deliver CertiJiGates to County ClerTc. — By section 44
of the new law the tax certificates of school directors, with lists of
resident tax-payers, are required to be delivered to township treas-
urers, instead of the county clerk, as heretofore, and township
treasurers must deliver the same, after due examination and the
correction of errors, if any, to the clerk of the county court, on or
before the second Monday of September, annually. The day up-



154: SCHOOL LAWS OF ILLINOIS, WITH

on or before which said certificates must be filed with township
treasm-ers is fixed by law, and said treasurers may refuse to re-
ceive any returns made to them after the first Monday of Sep-
tember, just as the county clerk may reject certificates delivered
to him after the second Monday of September. If directors fail
in their duty they are responsible ; if treasurers receive the certi-
ficates in season, and fail to deliver them to the county clerk in
time, they are responsible. It is essential to the validity of a
school tax, that it be certified to the county clerk by the day de-
signated by law. {Covjgill v. Long, 15 III., 202.) Whenever
changes have occurred in the boundaries of districts since the last
return, township treasurers must file with the county clerk, with
the certificates aforesaid, a new map of their township showing
such changes. (§ 44.)

27. Miist Insjpect Becords. — Directors are required to submit
their records to the township treasurer, for his inspection, on the
first Mondays of April and October, and at such other times as he
may require. It is hoped that treasm-ers wiU fa'thfuUy perform
this duty, and do aU they can by their aid and advice to bring
about a uniform and reliable system of district records. They
will be more than repaid in the increased facilities afi"orded them
in making out their annual reports to the school commissioner.
(§42.)

28. Schedules to he Filed and Preserved. — Towhship treas-
urers are required to "receive and safely lieep, according to law,
aU books and papers of every description belonging to their
townships." Among the "papers" included in the requu-ement
are teachers' schedules, which must not, therefore, be destroyed,
but carefully filed and preserved. They form a part of the
official documents of the treasurer's office, and their preservation
may be, hereafter, of much legal and historical importance.
Should the accumulation of schedules become inconveniently
large, they may be boxed up, so as to occupy but little space, and
laid away properly labeled. Other old papers may be disposed
of in the same manner ; but no official papers can lawfully be
destroyed.

29. Failure or Refusal to Turn Over Funds and Pajpers to
Successors. — When a township treasm-er resigns, or is removed, or
when his term of service expires, he is required, by section 65,
to turn over to his successor all funds, books and papers, belong-



OFFICIAL AND JUDICIAL DECISIONS, 155

ing to the township. His official bond, (section 55), is also ex- ''
pressly so conditioned. If he fail to comply with this obligation,
and neglect or refuse to turn over all moneys and papers to his
successor, he is not only liable on his official bond, but also to a
separate and special "penalty of not less than ten nor more than
one hundred dollars ;" the payment of which leaves him still
liable, as fully as before, upon his official bond, (Section 65,)
In case suit should be necessary to compel the treasurer to turn
over the funds and papers of the township to his successor as
aforesaid, it should be brought by the townshvp trustees^ in their
corporate name, in an action of debt, or replevin, or both.
Township treasurers are made insurers of the funds coming into
their possession, and nothing should or can excuse them but the
act of God, or of the public enemy. Another duty no less im-
perative, is, that they will deliver to their successors in office all
moneys, etc., in their hands as such township treasurers,
{TJiomson v. Trustees^ 30 III. 99.)

30. Purchaser of School Lomd may he Treasurer. — The stat-
ute, section 32, provides that the person appointed township treas-
urer "shall not be a director or trustee." There is no other
restriction. The prohibition is limited to those two classes — di-
rectors and trustees. Any other person, who can give bonds
with the necessary security, may be appon ted township treasurer.
Of course, therefore, a person who has purchased school land and
given his note and executed a mortgage therefore, is not thereby
disqualified for holding the office of treasurer. The only ques-
tion is one of prudence and sound policy. Since such a person
would have the care and custody of his own note, his appoint-
ment as treasurer, though legal, would not be advisable.

31, Renewal of Notes. — Township funds cannot be loaned for
less than six months, or more than five years. In respect to se-
curity the statute provides for two classes of cases : One hundred
dollars, or less, may be loaned for one year, or less, upon person-
al security ; two responsible names being sufficient : For all oth-
er loans, the notes must be secured by mortgage on unincum-
bered real estate, in value double the amount loaned. The se-
curities of these notes are in all cases holden until the notes are
paid and canceled. Bat it is the duty of the treasurer to require
every note to be renewed at maturity, or a new one be executed,
so that the securities may be released if they wish to be. If he



156 SCHOOL LAWS OF ILLINOIS, WITH

fail to do so, and loss result from sucli failure, lie is liable on Ms
bond, unless he was instructed or authorized in his course by the
board of trustees. Parties, who, as securities, become liable joint-
\j and severally with the maker of a note, have a right to expect
release at the expiration Of the time for which the note was given,
and it is unjust not to affv>rd them the opportunity. They allow
the use of their names for a limited time only. JSTo man would
assume the obligations of suretyship upon any other condition.

The continued pre-payment of interest on a note does not give
the borrower a legal claim to keep the money beyond the time
specified in the note, but the principal may be sued for and col-
lected at any time after due, noth withstanding the tender and ac-
ceptance of further advance interest. But the debtor would in
that case be entitled, on final settlement, to a deduction equal to
the amount of interest overpaid. If a note is not paid at maturity
the borrower is in default, and an action may be brought at once
thereafter, and at any time thereafter, to enforce payment thereof.
The right to bring suit is not waived or impaired by the payment
of further installments of advance interest, nor does such further
payment of interest confer upon the borrower a legal claim to the
use of the principal for another six months. Default begins and
the right to sue accrues from and after the time for which the
money was loaned and the note was given. {Sections 57, 61, 64,
et at.) Treasurers must be careful not to extend the time for the
payment of a note, or make any alterations in its terms and condi-
tions, without the full knowledge and consent of both principal
and sureties. By so doing the sureties may be released and the
debt lost. {Gardiner v. Earbaek, 21 III, 130.)

32. Mortgages how Canceled. — When a mortgage, given to
secure payment of school funds, is paid, it may be canceled by
the township treasurer, as the legal representative of the trustees,
by simply entering satisfaction upon the margin of the record, in
the recorder's office. Or the treasurer may grant a release, under
his seal and signature, as the legal representative of the trustees,
as aforesaid. Every mortgagee of real estate, his assignee or
other legal representative, having receiv^ed full satisfaction and
payment of all such sum or sums of money as are really due to
him or her from the morgagor, shall, at the request of the mort-
gagor, enter satisfaction upon the margin of the record of such
mortgage in the recorder's office, which shall forever thereafter



OFFICIAL AND JUDICIAL DECISIONS, 157

discharge and release the same, and shall bar all actions or suits
brought, or to be brought, thereupon. Or it shall be deemed a
sufficient release and extinction of any mortgage granted upon
any real estate, if the mortgagee, his or her legal representative
or assigns, shall grant a fall release of the same under his, her or
their seal and signature, in the presence of an attesting witness,
and acknowledge the execution of such release in the same man-
ner, and under the same restrictions, in which deeds are acknowl-
edged by the existing laws of the state. {Scates' Comp. 9T6.)

33. Commissions of Treasurers. — Section 34 directs town-
ship trustees to allow and set apart to the township treasurer two
per cent, of the gross aitiount of state, county and township funds
on hand, on the first Mondays of April and October. This re-
quirement is peremptory ; the trustees have no discretion in the
matter. The treasurer's per centage on these funds must be de-
ducted before any apportionment is made to the district; for,
"of the r^m(2wi<:Z6r, one-half shall be divided among the districts,"
etc. But section 72 provides that "township treasurers shall be
allowed to retain two per cent, upon all sums paid out or loaned
by them, including moneys raised by virtue of any district tax."
Here are two conflicting rules of law in respect to the commis-
sions of treasurers. One is general, applying to ^'•all sums" in
the treasurer's hands. The other is limited, applying only to
public, or "state, county and township funds." By section 72, the
treasurer can retain two per cent, upon those sums only which he
actually '■'■^pays out f his commissions depend upon the amount
dishursed^ and accrue only when disbursements are made. By
section 34, on the other hand, he gets his per centage on the pub-
lic funds, hefore they are paid out, unconditionally ; for the
province of the trustees is simply to apportion the public funds
among the districts, that is, to determine the amount to which
each district is entitled. They do not pay out the funds at all ;
that is done by the treasurer exclusively, upOn the orders of the
directors. To reconcile these diverse provisions of the statute, it
is necessary to discriminate between the public, or state, county
and township funds, and special district tax funds. In the case
of the former, the treasurer will receive his per centage in ad-
vance, as directed in section 34 ; and, in his accounts with the


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Online Librarystatutes Illinois. LawsSchool laws of Illinois → online text (page 17 of 26)