CHAPTER 551

An Act to amend the Code of Virginia by adding in Chapter 32 of Title
15.1 an article numbered 4.1 containing sections numbered 15.1-1358.1
through 15.1-1858.8, relating to financing by transportation districts,
elections in connection therewith, procedures and limitations for the
issuance of bonds and provisions for determining validity of bonds.

[S 482]
Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Chapter 32 of
Title 15.1 an article numbered 4.1, as follows:

Article 4.1
Financing

§ 15.1-1858.1. Elections and Procedure. (a) Upon the concurrence
of a majority of the qualified voters voting in the election specified
herein in each of the city and county governments participating in a
transportation district operating under the provisions of § 15.1-1357(b)
of this Chapter, a transportation district shall have the authority to issue
bonds as hereinafter provided for any of its purposes, including the pay-
ment of all or any part of the costs, expenses and obligations of the
district in providing or causing to be provided the transportation facilities
and services encompassed in the transportation plan adopted pursuant
to § 15.1-13866 (a) (4) and to pay the interest and principal thereon
by such taxes as shall be levied or authorized to be levied or assessed by
the General Assembly; provided, however, that no such bonds shall be
issued until such levy of taxes or authorization for levy or assessment
has been enacted by the General Assembly.

(b) When a district commission adopts a resolution requesting au-
thorization to issue bonds and to pay the interest and principal thereon
under the provisions of § 15.1-1358.1 (a), the commission shall cause a
copy of the resolution to be published in a newspaper or newspapers
having general circulation in each city and county participating in the
transportation district at least once a week for four successive weeks.

(c) When such publication of the resolution is completed, of which
a certificate to the judges of the circuit courts having jurisdiction in the
counties and to the judges of the corporation courts having jurisdiction
in the cities, from the owner, editor or manager of the newspaper publish-
ing the same, shall be proof, the respective judges of the circuit courts of
the counties and the corporation courts of the cities shall, by order entered
of record, require the regular election officers of such counties, towns
and cities, at the next regular November election or on a date fixed in the
order, which date may be provided for in the resolution and shall be the
same in each of the governmental subdivisions within the district, to open
the polls and take the sense of the qualified voters of each governmental
subdivision on the question submitted as hereinafter provided.

(d\ The regular election officers, on the date designated in the order
requiring the vote, shall open the polls at the various voting places in
their respective governmental subdivisions and conduct the election in
such manner as is provided by general law for other elections in so far as
the same is applicable. The ballots for each governmental subdivision
shall be prepared by the electoral boards thereof and distributed to the
various election precincts therein, as provided by law. The ballots used
shall be printed and shall contain the following:

“SRA ENE ....ccccccccccssesescccccccccsssscssscccccecansssscecccccccceccssssseeserses Transportation
Commission Resolution dated ........ccccccccccscsssccecesssssccccesseceeseessesssseceesssaceesseesssseees
be approved?

(] For

[] Against’

The squares to be printed on such ballots are to be not less than 1%4” nor
more than 4,” in size and shall be marked as provided by general law for
other elections in so far as the same is applicable.

(e) The ballots shall be counted and the returns made and canvassed
as in other elections, the results certified by the Commissioners of Elections
to each of the judges of the circuit courts having jurisdiction in the
counties and to each of the judges of the corporation courts having juris-
diction in the cities in the district. The judge or judges shall enter of record
in such court in each county and city the number of votes certified to be
“for” and the number “against” the approval of the resolution. The clerk
of each such court shall file a certified copy thereof with the governing
body rf each component government and the Secretary of the Common-
wealth.

(f) Unpon receipt by the Secretary of the Commonwealth of certi-
fication of the results of the election so held from the clerks of all of such
courts in the district, the Secretary shall canvass such certificates and shall
promptly furnish to the judges of such courts a certificate setting forth
whether or not the majority of the qualified voters voting in the election
specified herein in each governmental subdivision in the district voted in
favor of the resolution.

(g) When a majority of the qualified voters voting in the election
specified herein in each component government in the district votes in
favor of the resolution, of which fact the certificate of the Secretary of
the Commonwealth shall be proof, the respective judges of the circuit
courts having jurisdiction in the counties, and the corporation courts hav-
ing jurisdiction in the cities shall, by order entered of record in such
court in each county and city, authorize the district commission to tissue
bonds and to pay the interest and principal thereon as provided in § 15.1-
1858.1(a).

§ 15.1-1858.2. Authority to Issue Bonds; Limitation of Amount; Res-
olution_(a)(1) A transportation district operating under the provt-
sions of § 15.1-1357(b) of this Chapter is hereby authorized to issue bonds
from time to time in its discretion, for any of its purposes, including the
payment of all or any part of the costs, expenses and obligations of the
district in providing or causing to be provided the transportation facilities
and services to its component governments and including the payment or
retirement of bonds previously issued by it. The aggregate amount of bonds
issued and outstanding at any one time shall not exceed nine per
centum of the true value of the real estate in the district subject to local
taxation; provided, however, that no such bonds shall be issued until such
levy of taxes or authorization for levy or assessment has been enacted
by the General Assembly, pursuant to § 15.1-1358.1 hereof.

(2) Neither the members of a transportation district nor any person
executing the bonds shall be liable personally on the bonds by reason of the
issuance thereof. The bonds and other obligations of a district (and such
bonds and obligations shall so state on their face) shall not be a debt of
the Commonwealth or any political subdivision thereof and neither the
Commonwealth nor any political subdivision thereof other than the district
shall be liable thereon. The bonds shall not constitute an indebtedness
within the meaning of any debt limitation or restriction except as provided
under § 15.1-1858.2. Bonds of a district are declared to be issued for an
essential public and governmental purpose.

(b) (1) Bonds of a transportation district shall be authorized by
resolution and may be issued in one or more series, shall be dated, shall
mature at such time or times not exceeding forty years from their date or
dates and shall bear interest at such rate or rates not exceeding six per
centum (6%) per annum, as may be determined by the district, and may
be made redeemable before maturity, at the option of the district at
such price or prices and under such terms and conditions as may be fixed
by the district prior to the issuance of the bonds. The transportation
district shall determine the form of the bonds, including any interest
coupons to be attached thereto, and the manner of execution of the bonds,
and shall fix the denomination or denominations of the bonds and the
place or places of payment of principal and interest, which may be at any
bank or trust company within or without the Commonwealth. In case
any officer whose signature or a facsimile of whose signature shall appear
on any bonds or coupons shall cease to be such officer before delivery
of such bond, such signature or such facsimile shall nevertheless be valid
and sufficient for all purposes the same as if he had remained in office
until such delivery. Notwithstanding any of the other provisions of this
act or any recitals in any bonds issued under the provisions of this act,
all such bonds shall be deemed to be negotiable instruments under the laws
of the Commonwealth. The bonds may be issued in coupon or registered
form or both, as the district may determine, and provision may be made
for the registration of any coupon bonds as to principal alone and also as
to both principal and interest, and for the reconversion into coupon
bonds of any bonds registered as to both principal and interest. The
transportation district may sell such bonds in such manner, either at
public or private sale, and for such price, as it may determine to be for
the best interests of the district, but no such sale shall be made at a price
so low as to require the payment of interest on the money received therefor
more than six per centum (6%), computed with relation to the absolute
maturity or maturities of the bonds in accordance with standard tables of
bond values, excluding, however, from such computation the amount of any
premium to be paid on redemption of any bonds prior to maturity. A
transportation district is authorized to enter into indentures or agreements
with respect to all such matters and such indentures or agreements may
contain such other provisions as the transportation district may deem
reasonable and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of such indentures or agreements
may be treated as a purpose of the transportation district.

(2) Prior to the preparation of definitive bonds a transportation
district may, under like restrictions, issue interim receipts or temporary
bonds, with or without coupons, exchangeable for definitive bonds when
such bonds shall have been executed and are available for delivery. A
transportation district may also provide for the replacement of any bonds
which shall become mutilated or shall be destroyed or lost.

(3) Bonds may be issued under the provisions of this act without
obtaining the consent of any commission, board, bureau or agency of the
Commonwealth or of any governmental subdivision, and without any
other proceedings or the happening of other conditions or things than those
proceedings, conditions or things which are specifically required by this act.

(c) Any holder of bonds, notes, certificates or other evidence of
borrowing issued under the provisions of this act or of any of the coupons
appertaining thereto, and the trustee under any trust indenture or agree-
ment, except to the extent of the rights herein given may be restricted by
such trust indenture or agreement, may, either at law or in equity, by suit,
action, injunction, mandamus or other proceedings, protect and enforce
any and all rights under the laws of the Commonwealth or granted by this
act or under such trust indenture or agreement or the resolution authorizing
the issuance of such bonds, notes or certificates, and may enforce and com-
pel the performance of all duties required by this act or by such trust
wndenture or agreement or resolution to be performed by the transporta-
tion district or by any officer or agent thereof.

(d) The exercise of the powers granted by this act shall be in all
respects for the benefit of the inhabitants of the Commonwealth, for the
promotion of their safety, health, welfare, convenience and prosperity,
and any facility or service which a transportation district is authorized
to provide will constitute the performance of an essential governmental
function. The bonds, notes, certificates or other evidences of debt issued
under the provisions of this act, their transfer and the income therefrom
including any profit made on the sale thereof, shall at all times be free and
exempt from taxation by the Commonwealth and by any governmental
subdivision thereof.

(e) Bonds issued by a transportation district under the provisions
of this act are hereby made securities in which all public officers and
public bodies of the Commonwealth and its governmental subdivisions,
all insurance companies, trust companies, banking associations, in-
vestment companies, executors, administrators, trustees and other fiduci-
aries may properly and legally invest funds, including capital in their
control or belonging to them. Such bonds are hereby made securities which
may properly and legally be deposited with and received by any State
or municipal officer or any agency or governmental subdivision of the
Commonwealth for any purpose for which the deposit of bonds or
obligations is now or may hereafter be authorized by law.

§ 15.1-1858.8. Judicial Determination of Validity of Bonds.—The
provisions of §§ 15.1-218 to 15.1-221 of the Code of Virginia are applicable
to all suits, actions and proceedings of whatever nature involving the
ee hia of bonds tssued by a transportation district under the provisions
of this act.