Chap. 186.—An ACT to provide for the issuance of bonds to carry into effect the
purposes of any sanitary district heretofore or hereafter created by a special
act of the general assembly. [S B 257]

Approved March 22, 1932

~~

1. Be it enacted by the general assembly of Virginia as follows:

Section 1. In order to raise the necessary funds to carry into effect
the purposes of any sanitary district heretofore or hereaiter created by
a special act of the general assembly, the board of supervisors of any
county, a part of which has been created as a sanitary district by a
special act of the general assembly, shall have power, subject to the
conditions and limitations of this act, to issue bonds of said sanitary
district to an amount in the aggregate of not exceeding eighteen per
centum of the assessed value of all real estate in said sanitary district
subject to local taxation.

Section 2. The circuit court of said county or the judge thereof in
vacation upon the petition of a majority of the board of supervisors or
upon the petition of fifty qualified voters residing in said sanitary dis-
trict, shall make an order requiring the judges of election at the next
election of county officers, or at any other time not less than thirty
days from the date of such order, which shall be designated therein,
to open a poll and take the sense of the qualified voters of said district
on the question whether the board of supervisors shall issue bonds for
one or more of the purposes for which the said sanitary district was
created. |

section 3. The regular election officers of said county in said dis-
trict at the time designated in the order authorizing the election, shall
open polls at such voting places in the district as may be designated in
the said order, and shall conduct such election and close the polls in
such manner as is provided by law for other elections. At the said
election there shall be printed on each ballot in separate lines the
following:

FOR BOND ISSUE

AGAINST BOND ISSUE

Voters desiring to vote in favor of the issue of said bonds shall
strike out the words “against bond issue,” and voters desiring to vote
against the bond issue shall strike out the words “for bond issue.”
Voters striking out or erasing the words “for” or “against” shall be
deemed to have stricken out or erased the entire line. The judges of
election at the several voting places shall immediately after the clos-
ing of the polls at each of said places, count the ballots deposited, and
shall, within two days after said election, make return thereof as is
provided in other elections. Said ballots shall be printed and furnished
by the regular election officers.

Section 4. The commissioners of election of said county shall,
within two days after the judges of election shall have made return of
the poll books and ballots as aforesaid, meet at the office of said clerk
and, having taken an oath before him faithfully to discharge their
duties, canvass the returns and certify the results thereof to the circuit
court.

Section 5. If it shall appear by the report of the commissioners that
a majority of the qualified voters of said sanitary district voting on the
question are in favor of issuing the bonds, the circuit court, or the
judge thereof in vacation, shall enter of record an order requiring the
supervisors to proceed at their next meeting to carry out the wishes of
the voters as expressed at said election.

Whenever the sense of the qualified voters of said district shall be
taken on the question whether the board of supervisors shall issue
bonds for one or more of the purposes for which the said sanitary dis-
trict was created, the said election and returns shall be subject to the
inquiry, determination and judgment of the circuit court of said county
upon the written complaint of twenty-five or more of the qualified
voters of said district, of an undue election or false returns, two of
whom shall take an oath that the facts set forth in such complaint are
true to the best of their knowledge and belief, and the court shall, in
judging of such election and returns, proceed upon the merits thereof
and determine concerning the same according to the constitution and
laws of this State, but such complaint shall not be valid unless it shall
have been filed within thirty days after said election in the office of the
clerk of said court. The board of supervisors of said county shall be
made a defendant by summons or notice to its chairman of the filing
of the complaint, and after such service of notice on the chairman of
said board, either party, upon reasonable notice to the other, shall be
at liberty to take depositions to sustain or invalidate such election. Ser-
vice of notice on any three of the complainants shall be sufficient. The
court shall proceed at its next term after such service of summons or
notice to determine the contest without a jury on the evidence, oral or
written, unless good cause be shown for a continuance, and shall make
a proper record of its judgment. If the judgment be that the election
was a valid one in favor of the issuance of bonds in said district, the
court shall make an order in conformity with the preceding section.
Section 6. The board of supervisors at their next meeting or as
soon thereafter as practicable, shall determine what amount of bonds
shall be issued for the purposes defined in the order calling the elec-
tion. The maximum amount of bonds issued shall in no case exceed
the maximum amount prescribed in section one of this act, and in the
event they do not at said meeting direct the present issuing of all the
said bonds, they may thereafter, from time to time, direct the residue
thereof to be issued to carry out the wishes of the voters, so far as
necessary, as expressed in such election, and in event the board, for
any reason, fails or refuses to issue the bonds so authorized to be
issued, the circuit court of said county may, upon the complaint of ten
qualified voters of said district, and after ten days’ notice to the chair-
man of the board, for cause shown, issue an order directing them to
issue said bonds or any unissued residue thereof, or such portion there-
of as the court may, from time to time, deem proper to be issued in
order to carry out the wishes of the voters as expressed in said elec-
tion. The said board shall have power to appoint an agent or agents
to sell said bonds and to pay said agent or agents a commission for
negotiating said sale not exceeding three per centum of the amount of
bonds sold by them, provided said bonds shall be sold to be paid for
in lawful money only, and shall not be sold at less than their par value.
When such a sale has been negotiated, the board of supervisors shall
issue said bonds. Said bonds may be either registered or with coupons
attached, as the board of supervisors may prescribe, and coupon bonds
may be registerable as to principal, or as to principal and interest, at the
option of the holder, under such rules and regulations as may be pre-
scribed by the board. Said bonds shall be signed by the chairman and
countersigned by the clerk of said board under the seal of said board;
shall be in denominations of one hundred dollars or some multiple
thereof; shall bear interest at a rate not exceeding six per centum per
annum, payable semi-annually, both principal and interest to be payable
at such place or places as may be determined by said board, and shall be
payable not exceeding thirty-four years from the date thereof, but may,
in the discretion of said board, be made redeemable at such time or
times within such period or periods and upon such notice as said board
may prescribe and stipulate upon the face of the bond when issued.
The board shall deliver said bonds to the treasurer of said county, who
shall deliver said bonds to the purchasers thereof, or their order, upon
the payment of the purchase price thereof. The said treasurer and his
sureties shall be liable for the amount received for said bonds as
though it were a county levy, and said funds shall be expended for the
purposes for which the bonds were voted and none other. The said
treasurer shall receive as compensation for his services hereunder one-
eighth of one per centum of the amount thus coming into his hands,
and also the reasonable cost of giving surety on such additional bond
or bonds as may be required of him, if any, on account of his receipts
heretofore or hereafter of said funds, and the board of supervisors
may direct the treasurer to deposit the proceeds of said bond issue in
such bank or banks as it may approve, to the credit of said treasurer,
to be paid out on his checks therefor, and at the rate of interest to be
specified, and all interest accrued therefrom shall be accounted for by
the said treasurer, and shall be expended for the purposes for which
the bonds were issued, and insofar as not necessary therefor, shall be
paid into the sinking fund to redeem the principal thereof at maturity.

Section 7. The net revenue derived from the operation of the pub-
lic utilities established by said sanitary district shall be set apart by the
said board to pay the interest on the bonds issued hereunder and to
create a sinking fund to redeem the principal thereof at maturity. The
board of supervisors is hereby authorized and empowered to apply any
part or all of said sinking fund in redemption of said bonds, if re-
deemable by their terms, or to the purchase of any of said bonds at
any time, and all bonds so redeemed or purchased by said board shall
be immediately cancelled and shall not be reissued, and the board of
supervisors is authorized and empowered to invest all accumulations
of money to the credit of said sinking fund in bonds of the United
States, of the State of Virginia or of any county, city or town of said
State.

The board of supervisors shall, if necessary for the payment of the
interest on said bonds or to increase the sinking fund provided for
hereunder, levy an annual tax upon all the property in said district
subject to local taxation to pay such interest and to make payments
into said sinking fund.

2. An emergency existing, this act shall be in force from its
passage.