Chap. 1.—An ACT to appropriate the sum of $10,000,000 to the “Sinking Fund”
so as to provide sufficient funds to liquidate, discharge, and pay off, principal
and interest, all of the bonds evidencing the funded debt of the Commonwealth,
except highway certificates of indebtedness; to provide for the payment of
said obligations by the “Commissioners of the Sinking Fund”, and for the
investment and management by them of all moneys in said “Sinking Fund”,
and of the securities therein, and to provide for the revision of all present
existing Sinking Funds of the State and their merger into one Sinking Fund,
and further to define the authority and duties of the “Commissioners of the
Sinking Fund”. [H B 1]

Approved October 1, 1942

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. There is hereby appropriated to the “Sinking Fund”
of the Commonwealth the sum of Ten Million ($10,000,000) Dollars, or
so much thereof as in the opinion of the “Commissioners of the Sinking
Fund”, is necessary to carry out the purposes of this Act. The State
Comptroller and State Treasurer shall take such action as may be ap-
propriate or necessary to transfer said sum from the General Fund of
the State Treasury to said “Sinking Fund” immediately upon the taking
effect of this Act, and to make same available for use and investment by
the “Commissioners of the Sinking Fund” as hereinafter provided.

Section 2. All existing Sinking Funds heretofore created or es-
tablished for the security, protection, or retirement of bonds or other
indebtedness of the Commonwealth, except the Sinking Funds created
under chapter thirty-three of the Acts of Assembly of nineteen hundred
and thirty-four, and chapters sixty-five and four hundred and eighteen
of the Acts of Assembly of nineteen hundred and thirty-six, as amended,
in relation to highway certificates of indebtedness, are hereby merged into
one “Sinking Fund”, to which shall be transferred all moneys, securities,
or other assets in said several funds, except as hereinafter provided.

Section 3. It appearing that the moneys hereby appropriated,
together with the moneys and securities now constituting the several
existing Sinking Funds, other than the interests in or claims of the Com-
monwealth against the Richmond, Fredericksburg and Potomac Rail-
road Company, are amply sufficient to provide for the payment and dis-
charge of all outstanding funded obligations of the Commonwealth, all
said interest or stock in or claims against said Railroad Company are
hereby withdrawn from the Sinking Fund or Funds of which same may
now constitute a part, and the “Commissioners of the Sinking Fund”
shall deliver into the custody of the State Treasurer for safekeeping all
stock or other evidence of the Commonwealth’s interest in or claims
against said Railroad Company. Hereafter, all dividends or other sums
received on account thereof shall be paid into the General Fund of the
State Treasury.

Section 4. The moneys belonging to said “Sinking Fund” shall
be invested by the “(Commissioners of the Sinking Fund”’ in obligations
of the United States Government or obligations fully guaranteed by the
United States Government, and all interest received on such investments
shall become a part of the “Sinking Fund’’. The principal of, and interest
on, all of said funded bonds of the Commonwealth shall be paid by the
“Commissioners of the Sinking Fund”. out of said “Sinking Fund’ pro-
vided for that purpose, and there is hereby appropriated out of the “Sink-
ing Fund” a sum suffcient for that purpose; provided, however, that all
interest payments which become due on or before January first, nineteen
hundred and forty-three, shall be paid out of the moneys appropriated
for that purpose by the general appropriation act of nineteen hundred and
forty-two. |

Section 5. The said “Commissioners of the Sinking Fund” are
hereby authorized and empowered, in their discretion, to borrow, tem-
porarily, such moneys as may be necessary to pay off and discharge any
bonds which are valid obligations of the Commonwealth whenever securi-
ties in the Sinking Fund are not paid at the time said obligations of the
State become due, and said securities, if sold, would have to be sold at
less than their cost to the Sinking Fund; provided, however, that the
Governor shall first approve in writing the borrowing of said moneys;
and provided further that the said moneys shall not be borrowed for a
longer period of time than five years. Said temporary loans may be
evidenced, either by notes signed in the name of the Commonwealth by
said “Commissioners of the Sinking Fund”, or by certificates of indebted-
ness, the latter, if issued, to be signed on behalf of the Commonwealth
by the State Treasurer and State Comptroller. Such certificates, if is-
sued, shall be sold by the said. “Commissioners of the Sinking Fund” for
cash, at such prices, not less than par, aS may be approved by them. Any
securities in the Sinking Fund may be hypothecated as security for the
payment of any notes or certificates of indebtedness which may be issued
under the provisions of this section.

Section 6. All expenses incurred in carrying into effect the pro-
visions of this Act shall be paid out of the “Sinking Fund”, for which
purpose there is appropriated out of said fund a sum sufficient.

Section 7. Nothing contained in this Act shall be construed as
affecting in any way chapter thirty-three of the Acts of Assembly of
nineteen hundred and thirty-four, and chapters sixty-five and four hun-
dred and eighteen of the Acts of Assembly of nineteen hundred and
thirty-six, as amended, in relation to highway certificates of indebtedness,
or authorize the payment of same out of the “Sinking Fund” provided
for by this Act. :

Section 8. Notwithstanding the provisions of section four of this
Act, with respect to the investment of the “Sinking Fund” moneys in
obligations of the United States Government or obligations fully guar-
anteed by the United States Government, the “Commissioners of the
Sinking Fund” shall nevertheless have authority to invest same in bonds
or obligations of the State, or any political subdivisions thereof, or of
any State institution, whenever, in their judgment, the best interests of
the State will be promoted by so doing. 3

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