Chap. 230.—An ACT to authorize the Richmond and Danville Railroad
Company better to provide for its liabilities by the creation of a new
mortgage.

~ Passed February 22, 1867.

Whereas, by virtue of an act of the general assembly,
passed the ninth day of February, eighteen hundred and
fifty-thré@, entitled an act to provide for the. completion of
the Richmond and Danville railroad, and for a loan of money
to said company, a loan of six hundred thousand dollars was
made by the state to the Richmond and Danville railroad
company, secured by mortgage conveying the net income and
property of said company, executed by the president thereof,
to the Board of public works, and bearing date the nine-
teenth day of March, eighteen hundred and fifty-three, of
which said loan a considerable part has been heretofore paid;
and whereas the said. company has at different times, before
and subsequent to the said mortgage, created other incum-
brances on its property, some of which remain in part unsat-
isfied, and it being deemed desirable, as well for the interests
of. the state as a stockholder therein, as to aid the said com-
pany in the prompt discharge of its obligations, that the lia-
bilities of the company, other than to the state, should, as
far as practicable, be consolidated under one lien, the pro-
perty of said company being known to be an ample security
for beth private and state debt: ,

1. Be it therefore enacted, That it shall be lawful for the
president and directors of said company to issue the bonds
of said company in such form and at such rate of interest as
they may deem expedient, to an amount not exceeding the
sum of two millions of dollars, and to secure the payment of
the principal and interest of the same by deed of trust or
mortgage on all the net tolls and receipts of the company
and all its property, real and personal, for the purpose of
meeting current demands against the said company, and of
consolidating its entire liabilities by funding its floating debt
and extinguishing, by exchange or purchase, its outstanding
bonds now held under previous incumbrances.

2. Be it further enacted, That the mortgage or deed of
trust above authorized to be made shall take precedence of
ind have priority over the mortgage to the state of Virginia,
-eferred to in the preamble to this act, the state hereby waiv-
ng her right to enforce satisfaction of the balance of her
aim under said last mentioned mortgage, until the amount
of all bonds issued under this act shall have been fully paid;
and the state hereby consents that such payment may be en-
forced by a sale of the trust, subject according to the terms
of the deed or mortgage authorized by this act, should such
sale at any time become necessary.

3. This act shall be in force from its passage.