Chap. 1.—An ACT to amend and re-enact section twenty-one (21) of the
charter of the town of Lexington, approved April 28, 1874, to validate
and confirm all bonds heretofore issued by the town, and to authorize
the mayor and the council of the town to issue bonds to the amount of
seventy-five thousand dollars for the purpose of supplying the town with
water.

Approved January 16, 1912.

1. Be it enacted by the general assembly of Virginia, That
section twenty-one (21) of the charter of the town of Lexington
be amended and re-enacted so as to read as follows:

§21. The mayor and council of the said town may, in the
name of and for the use of the town, contract loans or cause to
be issued certificates of debt or bonds, either registered or cou-
pon, for the purpose of opening and improving the streets; for
lighting the same; for buying real estate necessary for ceme-
teries and other purposes; for erecting public buildings and
school houses, and for supplying the town with water; but such
loans, certificates of debt or bonds shall not be irredeemable for
a longer period than thirty-four years. No such loan shall be
contracted, or certificates of debt or bonds issued, unless author-
ized by a vote of two-thirds of the town council taken by yeas
and nays, and recorded in the journal or minute book of the
council: provided, that no loan shall be contracted, or certificates
of debt or bonds of the town issued, if the amount thereof for
any purpose shall exceed the sum of five thousand dollars, until
and unless the same shall be sanctioned by a majority of the legal
voters of the town voting on the question, at an election held in
the said town at such time and place as may be fixed by a resolu-
tion or ordinance passed by the mayor and council of the town
by a vote of two-thirds of the members of the council taken by
yeas and nays and recorded in the journal or minute book of the
council. Such resolution or ordinance of the mayor and council
fixing the time and place for holding such election, and directing
the same to be held, shall state the purpose for which such bonds
are to be issued, the maximum amount thereof, the maximum
rate of interest to be paid thereon, and the time in which the
principal is to be paid. Notice of the holding of such election
shall be given by publication of the resolution or ordinance direct-
ing the same to be held, and fixing the time and place for holding
the same, for two successive weeks prior to the time fixed for
holding such election, in a newspaper published and circulated in
the said town, or by posting printed copies thereof at ten ormore
public places in said town. Such election shall be held and con-
ducted by the election officers legally appointed for the purpose
of holding and conducting regular election in the said town, and
in the manner provided by law for conducting and making
returns of elections for mayor and members of the town council:
provided, however, that the bonds or other interest Dearing obli-
gations of the town issued for any purpose shall not exceed at
any time eighteen per centum of the assessed valuation of the
real estate in the said town subject to taxation, as shown by the
last preceding assessment for taxes; but in determining the limi-
tation of the said town to incur indebtedness, there shall not be
included the classes of indebtedness excepted by sub-section (a)
and (b) of section one hundred and twenty-seven of the Consti-
tution; and when such debt is contracted or incurred the mayor
and council of the town shall provide for the prompt payment
of the interest thereon, and shall also provide a sinking fund for
the redemption of the principal at its maturity.

And be it further enacted that all bonds heretofore issued by
the said town are hereby validated and confirmed; and the mayor
and council of the said town are hereby authorized, without fur-
ther sanction by the qualified voters of the said town than that
given at the election held therein on the thirty-first day of Janu-
ary, nineteen hundred and eleven, which election is hereby de-
clared to be legal and valid, to issue and sell the bonds of the said
town, not exceeding seventy-five thousand dollars in amount,
for the purpose of enlarging and extending the water works of
the town so as to provide an adequate supply of water for the
use of the people of the said town: provided, that the principal
of the said bonds shall not run for a longer period than thirty-
four years from the date of their issue, and shall bear interest
at a rate not exceeding five per centum per annum; and the
amount thereof actually issued and sold, when added to the exist-
ing indebtedness of the town, shall not exceed the limitation
fixed and prescribed by section one hundred and twenty-seven
(127) of the Constitution.

2. It appearing that it is necessary for the said town to issue
and sell its bonds for the purpose of- increasing the water supply
of the town at the earliest time possible, an emergency is hereby
declared to exist and this act shall be in force from its passage.