Chap. 148.—An ACT to amend the Code of Virginia by adding thereto a new
section numbered 2727-a, in relation to power of the Governor, upon default in
payment of notes or bonds or interest thereon of any county or any district
thereof to withhold from said county payment of certain funds appropriated by
the State, and to direct payment thereof to holders of said notes or bonds.
[S B 131]
Approved March 18, 1932

1. Be it enacted by the general assembly of Virginia, That the
Code of Virginia be amended by adding thereto a new section num-
bered twenty-seven hundred and twenty-seven-a to read as follows:

Section 2727-a. Whenever it shall be made to appear to the gover-
nor from any petition filed with him by or on behalf of the holder ot
any notes or bonds of any county, verified by the said holder, herein-
after referred to as the petitioner, or by his or its duly authorized
agent, that such county has defaulted for over sixty days in the pay-
ment of the principal of or interest on any of its outstanding notes or
bonds held by such petitioner, the said governor shall make a sum-
mary investigation into the facts disclosed in said petition, and for
that purpose he shall have power to administer oaths and take testi-
mony thereunder, to issue subpoenas, and to compel the attendance
of witnesses and the production of books, memoranda, papers and
other documents, articles, instruments, and data.

If it be established to the satisfaction of the governor that the
said notes or bonds held by the petitioner are genuine and are the
notes or bonds of the said county, and that the said county is and has
been for a period of at least sixty days in default in the payment of
such notes or bonds or the interest thereon, the governor shall make
an order directing the comptroller to withhold on and after sixty days
from the issuance of such order, all further payment to the said
county of all funds or of any part thereof, except the amount required
by section one hundred and thirty-five of the Constitution of Virginia
to be applied to the schools of the primary and grammar grades in
the county and the amount payable to the county from the collection
of the State capitation tax, appropriated and payable by the State to
the said county for any and all purposes until such default shall be
paid. The governor may also in said order, or at any time thereafter
in writing while said default continues, direct the payment of all sums
so withheld by the comptroller, or so much thereof as shall be neces-
sary, to the said petitioner so as to cover, or cover in so far as possible,
the said default as to the said notes or bonds, or interest thereon, held
by said petitioner. Any payment so made by the comptroller to the
said petitioner shall be credited by the said petitioner as if made direct
by the county, and shall be charged by the comptroller against the
said county as if paid to the said county.

The petitioner at the time of said payment, or at the time of each
payment, shall receipt therefor and deliver to the comptroller all notes,
bonds and interest coupons satisfied by the said payment; and the
comptroller shall thereupon report each payment so made to the chair-
man of the board of supervisors of the county affected and deliver or
send by registered mail to the said chairman all notes, bonds and in
terest coupons received by the said comptroller under the provision
of this paragraph. ,

For the purpose of this section notes or bonds of any magisteria
district or school district of any county shall be treated as notes o:
bonds of the county in which such magisterial district or school dis

trict is located.
a