Chap. 86.—An ACT to authorize the city council of Alexandria to
compromise’ the debt of the city, and to issue bonds in accordance
with the terms of such compromise, and prescribing the mode in
which the payment of the interest on such bonds may be enforced.

Approved February 20, 1878.

Whereas it appears that the city council of Alexandria is
unable, even at the present high rate of taxation upon a full
assessment of the property within the city of Alexandria, to
meet the accruing interest on the debt of that city, and at
the same time make provision for the ordinary expenses of
the municipal government, and has asked its creditors to
assent to a compromise of said debt at the rate of fifty cents
in the dollar of principal’ thereof, to the end that’the muni-
cipal government may be maintained, and the debt so ar-
ranged as to bring the aggregate interest thereon within the
ability of the tax-payers to meet it by reasonable taxation;
therefore, |

1. Be it enacted by the geueral assembly of Virginia, That
the city council of Alexandria be and it is hereby authorized
and empowered to call in the outstanding bonds and evi-
dences of indebtedness of said city, of every description what-
soever, owned or held by persons who may assent to said
compromise and surrender their bonds and evidences of in-
debtedness, and to issue to such persons in lieu thereof, and
in exchange therefor, registered coupon bonds for one-half
of the principal of the securities so called in and surrendered,
but the arrears of interest on such securities shall be com-
promised or settled upon such terms, and in such manner as
may be hereafter agreed upon between the said city council
and the persons to whom thie same may be due.

2. The bonds issued under authority of this act, shall bear
date the first day of March, eighteen hundred and seventy-
eight and be payable thirty years after their date, but redeem-
able at any time prior thereto at the pleasure of the city
council. They shall bear interest at the rate of six per
centum per annum, payable semi-annually on such days and
at such places as the city council may prescribe, and the said
city council may give such liens upon the municipal pro-
perty, or the revenues derived therefrom, to secure the prompt
payment of the interest coupons of the said bonds, as it may
deem proper.

3. The interest coupons of the bonds hereby authorized to
be issued, shall be receivable at and after maturity, at their
face value, in payment of all taxes, licenses, gas bills, fines,
rents, debts, and demands due the said city council, which
shall be so expressed on their face. And said city council
shall not by any law, rule, or ordinance, discriminate against
such coupons as a medium for such payment, or offer a dis-
count or rebate for payment in current money; but this pro-
vision shall not be construed to require the collecting officers
of said city to make change in current money where coupons
fora greater amount than the bill for such taxes, licenses,
gas bills, fines, rents, debts or demands, are tendered in pay-
ment thereof. Neither the raid bonds nor the said coupons
shall be taxable by the said city council, whether held or
owned by residents or non-residents of the city, which shall
also be so expressed on their face.

4. The said city council shall create a sinking fund to be
applied to the redemption and payment of the bonds issued
under and by authority of this act, and shall annually until
such bonds are paid, levy and collect a tax, the proceeds of
which shall be paid into the city treasury to the credit of
the sinking fund.

5. The circuit or the corporation court of the city of Alex-

,andria, or any state court which may have general jurisdic-

tion in that-city, or the judyes thereof in vacation, shall have

jurisdiction and power, sbould default be made for thirty
days in the payment of the interest on the bonds issued under
this act, or any part thereof, upon the application of the
owners of the unpaid coupons for such interest, or any one
or more of said owners, to compel the city council, by man-
damus, to levy and collect a tax sufficient to meet all the
interest then due on such bonds, and to pay such interest as
soon as the money shall be received, but should said city
council fail or refuse to levy and collect the tax aforesaid
within thirty days after the mandamus commanding it to do
so shall have been served, or, in the event of the resignation
of the members of the city council, or a majority of them
or the corporate authorities, to evade the service of process
in mandamus, or to avoid the levying of such tax, or in the
event of such resignation from any cause or for any reason,
then the said courts, and the judges thereof in vacation, shall
have power to levy such tax and to appoint one or more com-
missioners, at a reasonable compensation, to collect it by dis-
tress or other proccss.

6. None of the provisions of this act shall apply to any
creditor of said city who does not accept the terms of said
compromise and exchange his securities hereunder, nor shall
said courts or the judges thereof, have any jurisdiction under
this act except in favor of those who are holders of the cou-
pons for interest on the bonds bereby authorized to be issued.

7. This act shall be in force from its passage,