Chap. 108.—An ACT to amend and re-enact section 7 of an act entitled an act to
| provide for the issuance of county bonds for constructing and operating water
supply systems in the magisterial districts of certain counties of the State; tc
provide for the payment of the interest thereon and the principal thereof at
maturity, and to provide for the construction and operation of such water sup-
ply systems, approved March 24, 1926, as heretofore amended. [H B 86]

Approved March 7, 1932

1. Be it enacted by the general assembly of Virginia, That sec-
tion seven of an act entitled an act to provide for the issuance of
county bonds for constructing and operating water supply systems in
the magisterial districts of certain counties of the State; to provide
for the payment of the interest thereon and the principal thereof at
maturity, and to provide for the construction and operation of such
water supply systems, approved March twenty-fourth, nineteen hun-
dred and twenty-six, as heretofore amended, be amended and re-en-
acted so as to read as follows:

Section 7. The board of supervisors of the said county shall have
authority to construct, maintain and operate for and on behalf of the
said district or districts public water supply system in accordance with
such rules and regulations as may be adopted by the said board, and
to fix the rates at which water shall be supplied or furnished to
consumers. The net revenues derived from the operation of such wa-
ter supply systems shall be set apart by the said board to pay the in-
terest on the bonds so issued or to be issued, and create a sinking
fund to redeem the principal thereof at maturity. The board of
supervisors 1s hereby authorized and empowered to apply any part or
all of said sinking fund to the payment, if redeemable by their terms,
or to the purchase of any of said bonds, at any time, and all bonds
so paid off or purchased by said board of supervisors shall be immedi-
ately cancelled, and shall 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 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, 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 at-
torney of said county, which approval shall be entered of record in the
order book of said court.

The treasurer shall not be liable for any funds herein provided
for that shall be lost while on deposit made by order of the board of
supervisors with any bank or banks, or when invested in any real
estate, security as provided herein, but the board of supervisors may
require of any such bank a bond, with corporate or other surety, to
secure such deposit. The treasurer shall not receive any compensa-
tion by way of commissions or otherwise, for the collection and/or
disbursement by him of water rents or income or revenue of any kind,
derived from the operation of any water system operated under the
provisions of this chapter. , ,

The board of supervisors shall have authority to accept negotiable
notes or bonds in payment for water connection charges. Whenever
any such note or bond is accepted by said board in payment for such
charges, such note or bond shall be listed by the treasurer of the
county in a special book provided by the board of supervisors for
that purpose, which list shall set forth the name of the maker, the
date thereof, the amount due, and when and how payable, and shall
be indexed in the name of the maker in the general index for deeds
in the clerk’s office of the circuit court of the county. From and after
the time such note or bond has been so listed and indexed, it shall be
a lien upon and against the real estate upon which the water connec-
tion was made.

For the purpose of obtaining funds for maintaining the water
system and making additional connections, the board of supervisors
shall have authority to borrow money from time to time not in ex-
cess of the unpaid balance due upon notes given in payment for water
connection charges in the hands of the board, and to assign and use
such notes or bonds as collateral security for the payment of the
money so borrowed.