Chap. 43.—An ACT to amend and re-enact section 5 of chapter 4 of an
act entitled an act concerning corporations, which became a law on
May 21, 1903. (H. B. 63.)

Approved February 17, 1916.

1. Be it enacted by the general assembly of Virginia, That
section five of chapter four of an act concerning corporations,
which became a law on May twenty-first, nineteen hundred and
three, be amended and re-enacted so as to read as follows:
| Sec. 5. Any corporation chartered under this chapter may

sell or exchange, transfer and convey any of its property—real,
personal or mixed—to promote or advance the necessary objects
and purposes of such corporation, or for the purpose of rein-
vesting in other property, real or personal, to be devoted to its
objects and purposes, and may borrow money and issue its notes
and obligations therefor, and secure the payment of the same
by deed of trust or mortgage, for the whole or any part of the
purchase price of any real estate purchased by such corporation,
or for the purpose of building or otherwise improving any real
estate purchased by such corporation, or for the purpose of
building or otherwise improving any real estate owned by it
(or for the purpose of paying any debt heretofore or hereafter
contracted to promote or advance the objects or purposes of
such corporation). Before any such corporation shall dispose
of or encumber its real property, the same shall be sanctioned
by a vote of a majority of the members of such corporation
having voting power present at a meeting of the members called
by its board of trustees, directors or managers for that pur-
pose, of which meeting notice, by publication at least six times
a week, for two successive weeks prior to such meeting, in some
newspaper published in or near the place where its principal
office is located, or notice in writing must be given to each
member of the corporation having voting power, by serving the
same on him personally or by mailing’ it to him addressed to
the post-office nearest his place of residence as it appears on the
books of the corporation, at least ten days prior to such meet-
ing, and in such notice must be stated the time and place of the
meeting and its object. If at such meeting a majority of the
members having voting power present and voting shall vote In
favor of disposing of or encumbering such real estate, or any
part thereof, then the board of trustees, directors or managers
of such corporation shall be authorized and empowered to dis-
pose of such real estate, or to encumber same by deed of trust
or mortgage upon the real estate of such corporation, or any
part thereof, and to execute and deliver, under the corporate seal
of such corporation, all necessary evidences of debt, deeds, con-
veyances, deeds of trust, or mortgages, as may be necessary in the
premises; provided, however, that no bonds shall be issued by
any such corporation until after full compliance with the pro-
visions of article one hundred and sixty-seven of the Constitu-
tion of this State, so far as applicable; and in default thereof,
any such corporation shall be subject to all the penalties pre-
scribed in this act against corporations for issuing bonds with-
out first having complied with the provisions of said article of
the Constitution.

2. As it is desirable that the corporations organized under
this act may take advantage of this amendment without delay,
an emergency exists, and this act shall become effective and be
in force from its passage.