Chap. 519.—An ACT to amend and re-enact section seven of an act entitled an
act to provide for the issuing of county bonds for permanent road or
bridge improvement in the magisterial district of the counties of the State,
and repealing all acts in so far as the same are in conflict herewith, approved
September 5, 1919. [S B 232]

Approved March 29, 1922.

1. Be it enacted by the general assembly of Virginia, That sec-
tion seven of an act entitled an act to provide for the issuing of
county bonds for permanent road or bridge improvement in the
magisterial district of the counties of the State, and repealing all acts
in so far as the same are in conflict herewith, approved September
fifth, nineteen hundred and nineteen, be amended and re-enacted as
follows:

Sec. 7. After issuing such bonds, or any of them, when the next
levy is laid or tax imposed in said county, a tax shall be levied on
all property liable to county and district tax in such magisterial
district in which the proceeds of the bonds have been, or are to
be expended, including the property, if any, located or the situs
of which for taxation is within the limits of any incorporated town
situated within such district, wherein real estate is subject to county
and district road tax, to pay the interest on the bonds so issued,
and to create a sinking fund to redeem the principal thereof at
maturity; and, in addition, an annual levy at a rate to yield a sum
amounting to not less than three per centum of the amount of bonds
outstanding and or previously issued, or, in lieu thereof, an amount
equal to the amount to be raised from said additional levy may be
set aside by the board of supervisors from other funds of the county,
or may be raised by other means now provided for by law; which sum
shall be expended under the direction of the local road authorities
in the maintenance and upkeep of the roads constructed and improved
hereunder, and from year to year said levy and assessment shall be
made until the debt and interest are paid, but said additional levy
for maintenance shall not exceed ninety cents on the one hundred
dollars ($100.00) of taxable property within the said magisterial dis-
trict of said county; and 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 princi-
pal, 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, it being and having heretofore been
intended that bonds issued or to be issued under this act are county
obligations, but payable primarily out of levies upon the property
in the magisterial district, where the proceeds of the bonds may be
expended hereinunder.

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 of 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 reissued, and the board of supervisors is
authorized and empowered 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 reinvest 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 credit of
said sinking fund shall be loaned out or deposited or invested by
the said board of supervisors, unles 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.

By reason of the necessity for issuing of bonds in several
magisterial districts of the counties of the State in order to properly
carry on county highway work, an emergency is hereby declared to
exist and this act shall be in force from its passage.