Chap. 70.—An ACT to provide for the issuing of county bonds for permanent
road or bridge improvement in the magisterial districts of the counties of the
State.

Approved February 25, 1908.

1. Be it enacted bv the general assembly of Virginia, That bonds
may be issued by any county for the purpose of macadamizing or other-
wise permanently improving the public roads and bridges of any magis-
terial or road district in said county, upon the conditions hereinafter
provided. The circuit court of the county, upon the petition of a ma-
jority of the board of supervisors of said county, or upon petition of
fifty freeholders of said county shall make an order requiring the judges
of election, at the next election of county officers or at any other time not
less than thirty days from the date of such order which shall be desig-
nated therein, to open a poll and take the sense of the qualified voters
of the county on the question, whether the board of supervisors shall
issue bonds for said purposes, or either of them; the approximate lo-
cation, length and width of such roads as is proposed to be macad-
amized or permanently improved to be named in the order. The said
order shall designate the magisterial district or districts in which such
road or roads lie, and the maximum amount of bonds to be issued,
which shall in no case exceed an amount in excees of ten per centum of
the total taxable values at the time in the magisterial district in which
the road or roads are to be built or permanently improved; the quali-
fied voters at any special election held under this act, until otherwise
provided.by general law, shall be those qualified to vote at the preceding
regular November election and those who may have come of age and
registered since said preceding regular November election, except those
who by commission of crime or removal from the district or county
have disqualified themselves to vote.

§2. The regular election officers of said county, at the time designated
in the order authorizing the vote, shall open polls at the various voting
places in the said county, and shall conduct such election and close
the polls in such manner as is provided by law in other elections; and at
said election each qualified voter who shall approve such issue of bonds
shall deposit a ticket or ballot on which shall be written or printed the
words, “ for bond issue,” and each qualified voter who shall oppose such
issue of bonds shall deposit a ticket or ballot whereon shall be written or
printed, “against bond issue.”

The judges of election at the several voting places shall, immediately
after the closing of the polls at each of the said places, count the ballots
deposited and shall within two days after said election, make returns
thereof as is provided in other elections, provided that no voter shall be
allowed to vote in said election who resides and is a voter in a town
exempt from road tax.

§3. The commissioners of election of said county shall, within two
days after the judges of election have made returns of the poll books
and ballots as aforesaid, meet at the office of said clerk and, having
taken an oath before him faithfully to discharge their duties, canvass
the returns and certify the results thereof to the circuit court.

§4. If it shall appear by the report of the commissioners, that a ma-
jority of the qualified voters of the county voting upon the question,
and also that a majority of qualified voters of the district or districts
in which the road or roads are to be built or permanently improved
voting on the question are in favor of issuing the bonds for the purpose
aforesaid, the circuit court shall at its next term enter of record an
order requiring the supervisors of the county to proceed at their next
meeting to carry out the wishes of the voters, as expressed at the said
election.

§5. Whenever the sense of the qualified voters of the said county
shall be taken on the question, whether the board of supervisors shall
issue bonds for the purpose aforesaid, the said election and returns
shall be subject to the enquiry, determination and judgment of the cir-
cuit court of the county in which such election was held, upon the
written complaint of fifteen or more of the qualified voters of such
county or an undue election or of false returns, two of whom shall take
an oath that facts set forth in such complaint are true to the best of
their knowledge and belief, and the court shall, in judging of such
elections and returns, proceed upon the merits thereof and determine
concerning the same according to the Constitution and laws of this
State, and such complaint shall not be valid unless it shall have been
filed within thirty days after the said election in the clerk’s office of the
said circuit court.

The board of supervisors shall be made a defendant by summons
or notice to its chairman of the filing of the complaint, and after such
service of notice on the chairman of the board of supervisors, either
party upon reasonable notice to the other shall be at liberty to take
depositions to sustain or invalidate such election. Service of notice
on any three of the complainants shall be sufficient. The court shall
proceed at its next term after service of such summons or notice to de-
termine the contest without a jury, on the evidence oral or written
unless good cause be shown for a continuance, and shall make a proper
record of its judgment. If the judgment be that the election is a valid
one, in favor of issuing bonds, the court shall make an order in con-
formity with the preceding section.

§6. The board of supervisors, at their meeting, or as soon thereafter as
practicable, shall determine what amount of bonds, not exceeding the
maximum aforesaid, shall be issued, and shall enter of record the amount
so determined. They shall have power to appoint an agent or agents
to negotiate a loan or loans, or to sell said bonds; provided said bonds
shall be paid for in lawful money, and shall not be sold at a price that
will net the county less than their par value. When such a loan has
been negotiated, or bonds sold, the board of supervisors shall issue said
bonds which may be either registered or with coupons attached, as said
board of supervisors may prescribe; and shall have written or printed
in said bonds the following sentences: “These bonds are issued for

magisterial district and a tax is to be levied upon the prop-
erty of said district to pay the interest on them and to create a sink-
ing fund sufficient in amount to pay them upon maturity”; said bonds
shall be signed by the chairman and countersigned by the clerk thereof ;
shall be in denominations of one hundred ($100) dollars, or some
multiple thereof; shall bear interest at the rate not exceeding six per
centum, payable annually at the office of the treasurer of said county,
and shall be payable not exceeding thirty-four years from the date
thereof at said office, but may, in the discretion of said board, be made
redeemable at such time or times, or after such period or periods, as the
said board may prescribe and stipulate upon the face of the bonds

when issued. The board shall deliver them to the treasurer of the county,
who shall deliver said bonds upon the payment of the price thereof. The
said treasurer and his sureties shall be liable for the amount received
for said bonds as though it were a county levy, and said funds shall
be expended for the purposes and in the magisterial district for which
it was intended and none other. The said treasurer shall receive, as
compensation for his services hereunder, one-fourth of one per centum
on the amount thus coming into his hands.

§7. After issuing such bonds, or any of them, when the next levy
is made, or tax imposed in said county, a tax shall be levied on all
property liable to State tax in such magisterial district in which the
proceeds of the bonds have been or are to be expended, to pay the in-
terest on the bonds so issued, and to create a sinking fund to redeem
the principal thereof at maturity; and from year to year said levy or
assessment shall be made until the debt and interest are paid, which
levy shall not exceed ninety cents in the hundred ($100) dollars of
taxable property within the said magisterial district of said county; the
amount levied for and set apart as a sinking fund and the interest
accruing thereon shall be used for the payment of the principal of said
bonds, and for no other purpose. Should for any reason the county in
any way have to assume any payment on account of said bond issue,
either interest or principal, it is hereby provided that the board of
supervisors shall levy such tax in said magisterial district as may be
necessary to defray the amount assumed by the county.

The board of supervisors is hereby authorized and empowered to
apply any part or all of said sinking fund to the payment or purchase
of any said bonds, at any time, and all bonds so paid off or purchased
by said board of supervisors shall be immediately cancelled, and shall
not be re-issued, and the board of supervisors are authorized and em-
powered to lend out, upon real estate security, the loan not to exceed
fifty per centum of the assessed value of such real estate, or deposit
in bank at interest, all accumulations of money to the credit of said
sinking fund, provided as aforesaid, and to collect and re-invest the
same and the interest accruing thereon from time to time, so often as
may be necessary or expedient, until such bonds become subject to call;
provided, that no money to the credit of said sinking fund shall be
loaned out or deposited or invested by the said board of supervisors,
unless said loan, deposit or investment shall be first approved
by the circuit court of said county, or the judge thereof in
vacation, and the form of the security be examined and approved by
the Commonwealth’s attorney of said county, which approval shall be
entered of record in the order book of said court.

§8. When the said county wishes to redeem any of its outstanding
bonds, subject to call, issued under the provisions of this act, it may,
through the chairman of the board of supervisors, give notice of its
readiness to do so to the holder in person, or by publication thereof
once a week for two successive weeks in a newspaper published in said
county, or nearest thereto. It shall be sufficient in the notice to give the
number and amount of each bond and fix a dav for its presentation for
‘payment, which shall not be less than ten days from the date of personal
service of the notice, or the completion of the publication thereof, as
the case may be.

If the bond be not presented on the day fixed for its redemption,
interest thereon shall cease from that day.

§9. The said local road authorities of the county shall apply to the
State highways commissioners for or shall employ a competent road en-
gineer whose selection shall be approved by the State highways com-
missioners, to make plans and specifications of all roads or bridges to
be built or permanently improved from the proceeds of such bond issue,
and to supervise the building of the same, and shall let the work to con-
tract to the lowest responsible bidder, after due public access to the
specifications and due public advertisement for bids for at least two
consecutive weeks in a newspaper having a general circulation in such
county, and in such publication as the State highways commissioner may
deem proper, if any, for the furnishing for all material and for the
construction of such road according to such plans and specifications
and such State highways commissioner and the local road authorities,
acting jointly, may award such contract to the lowest responsible bidder.
The local road authorities of the county in which any portion of such
road lies may offer bids and be awarded such contracts for or on behalf
of such county. Such commissioner and local road authorities may
reject any and all bids and before entering into any contract with any
bidder other than the local road authorities, they shall require a bond
in the penalty of at least thirty per centum of the contract price with
sufficient security conditioned that if the proposal shall be accepted the
contractor will furnish the material and perform the work upon the
terms proposed, within the time prescribed and in accordance with the
plans and specifications; partial payments may be provided for in the
contract and paid in the manner herein provided when certified to by
such commissioner or road engineer approved by him to an amount
not exceeding ninety per centum of the value of the work done, and ten
per centum of the contract price shall be retained until ninety days after
the entire work has been accepted and open to the public. The said
contractor shall conform to all reasonable regulations and directions
of the said highways commissioner or road engineer. The board of
supervisors or local road authorities shall have no power or authority
to expend the money derived from the bond sales as aforesaid except
to pay for materials furnished and work done under supervision and con-
tract as aforesaid.

§10. No election upon the question of the issuance of bonds under
this act shall be held oftener than once in two years for the same
magisterial district.