Chap. 58.—An ACT to amend and re-enact Section 3783 of the Code of Virginia,
as heretofore amended, relating to the creation and increase by corporations ot
bonded indebtedness to be secured by lien on their property or franchises. [S 52]

Approved February 26, 1944

Be it enacted by the General Assembly of Virginia:

1. That section thirty-seven hundred eighty-three of the Code of Vir-
ginia, as heretofore amended, be amended and re-enacted to read as fol-
lows:

Section 3783. How bonded indebtedness may be created or increased ;
lien on property or franchises; penalty—No corporation created under
the laws of this State shall create any bonded indebtedness, or increase tts
bonded indebtedness to be secured by lien on any of its property or
franchises, until the creation of such bonded indebtedness or the increase
of such bonded indebtedness be sanctioned by a vote in person or by
proxy of a majority in amount of all the stockholders having power.
present or represented and voting, at a meeting of the stockholders called
by the board of directors of the corporation for that purpose, of which
meeting notice by publication at least six times a week, tor two successive
weeks prior to such meeting, in some newspaper published in the place
where its principal office is located, or having a general circulation therein,
or notice in writing shall be given to each stockholder of record by serv-
ing the same on him personally, or by mailing to him addressed to the
post office nearest his place of residence, as it appears on the stock books
of the corporation, at least ten days prior to such meeting; which notice
shall state the time and place of the meeting and its object. If at such
meeting a majority in amount of all the stockholders present, or rep-
resented and voting, shall vote in favor of creating such bonded indebted-
ness, or of increasing such bonded indebtedness, bonds of such corpora-
tion may then be issued to the amount authorized by the vote of the
stockholders, as hereinbefore provided, and the payment thereof, with
the interest to accrue thereon, may be secured in such manner and upon
such terms as the stockholders at such meeting may, by resolution pre-
scribe ; but no such bonds shall be issued until after full compliance with
the provisions of section one hundred and sixty-seven of the Constitution
of this State, so far as applicable; and in default thereof any such cor-
poration shall be subject to all the penalties prescribed by law against
corporations for issuing bonds or stock without first having complied with
the provisions of said section of the Constitution. Nothing in this section
shall apply to notes or bonds given for deferred instalments of the pur-
chase price of property and secured by deeds of trust, mortgages or other
liens on the property, nor to notes or bonds secured by deeds of trust,
mortgages or other liens on property, given by any corporation dealing
in real estate and taken in the usual course of business, nor to notes, bonds,
contracts or liens given for deferred instalments of the purchase price
of rolling stock leased or purchased by railroad corporations.