Chap. 56.—An ACT to amend Chapter 175 of the Acts of Assembly of 1946,
approved March 12, 1946, providing water supply systems in certain counties
by adding three new sections numbered 7-b, 7-c and 7-d relating to bond
issues. {H 186]

Approved February 27, 1948

Be it enacted by the General Assembly of Virginia:

1. That chapter one hundred seventy-five of the Acts of the
Assembly of nineteen hundred forty-six, approved March twelve,
nineteen hundred forty-six, be amended by adding thereto three
new sections numbered seven-b, seven-c and seven-d, respectively,
which shall read as follows:
Section 7-b. In cases where a county, at the time of issuing
bonds under authority of this act, contains an incorporated town
operating its own water supply system and exempted from the
operation of this act by section seven-a, that part of the territory
oi such county which is outside of the corporate limits of such
exempt town shall, for the purposes of issuing and paying the bonds,
constitute a district, and the following special provisions shall be
applicable to such bonds: (a) The bonds shall be issued in the name
ot such county on behalf of such district, and not.on the credit
of the entire county. (b) There shall not be written or printed on
the bonds the words “and the full faith and credit of said county
is hereby pledged for their payment”, required by section four of
this act. (c) The aggregate principal amount of the bonds shall
not exceed eighteen per centum of the assessed value of all real
estate of such district subject to local taxation. (d) Any tax which
may be levied for the payment of interest on such bonds or to
increase the sinking fund provided therefor shall be levied only on
the real property in such district.

Section 7-c. Any provision of any law to the contrary notwith-
standing, any bond issued pursuant to the authority of this act
shall be deemed to be fully negotiable within the meaning and for
all the purposes of chapter two hundred thirty-three of the Code
of Virginia.

Section 7-d. Any resolution of the board of supervisors of a
county providing for or authorizing the issuance of any bonds under
the authority of this act may, in the discretion of the board of sup-
ervisors, contain provisions, which shall be a part of the contract
with the several holders of such bonds, as to:

(1) The custody, security, use, expenditure or application of
the proceeds of the bonds;

(2) The construction and completion, or replacement, of all or
any part of the water supply system or systems for which the bonds
are issued ;

(3) The use, regulation, operation, maintenance, insurance or
disposition of all or any part of such water supply system or sys-
tems, or restrictions on the exercise of the powers of the board of
supervisors to dispose of, or to limit or regulate the use, of all or
any part of such water supply system or systems;

(4) Payment of the principal of or interest on the bonds, and
the sources and methods thereof, the rank or priority of any such
bonds as to any lien or security, or the acceleration of the maturity
of any such bonds;

(5) The use and disposition of the revenues derived or to be
derived from the operation of all or any part of such water supply
system or systems, including any part of such water supply sys-
tem or systems, including any parts thereof theretofore constructed
or acquired and any parts, extensions, replacements or improve-
ments thereof thereafter constructed or acquired ;
(6) The pledging, setting aside, depositing or trusteeing of all'
or any part of the revenues of such water supply system or systems
to secure the payment of the principal or interest on the bonds, or
the payment of expenses of operation or maintenance of such water
supply‘system or systems ;

(7) The setting aside out of said revenues, reserves and sink-
ing funds, and the source, custody, security, regulation and disposi-
tion thereof ;

(8) Determination of the definition of said revenues or of the
expenses of operation and maintenance of such water supply system
or systems ;

(9) The rents, rates, fees, or other charges for connection with
or the use of the services of such water supply system or systems,
including any parts thereof theretofore constructed or acquired, and
any parts, extensions, replacements or improvements thereof there-
after constructed or acquired, and the fixing, establishment, collec-
tion and enforcement of the same, the amount or amounts of rev-
enues to be produced thereby, and the disposition and application
of the amounts charged or collected ;

(10) The assumption or payment or discharge of any indebted-
ness, liens or other claims relating to any part of such water sup-
ply system or systems or any obligations having or which may have
a lien on any part of such revenues ;

(11) Limitations on the issuance of additional bonds or any
other obligations or on the incurrence of indebtedness, payable from
said revenues;

(12) Limitations on the powers of the board of supervisors to
construct, acquire or operate, or permit the construction, acquisition
or operation of, any plants, structures, facilities or properties which
may compete or tend to compete with such water supply system or
systems;

(13) Payment of costs or expenses incident to the enforcement
of the bonds or of the provisions of any resolution authorizing or
providing for the bonds, or of any covenant or contract with the
holders of the bonds ;

(14) The procedure, if any, by which the terms of any cove-
nant or contract with, or duty to, the holders of the bonds may be
amended or abrogated, the amount of bonds the holders of which
must consent thereto, and the manner in which such consent may
be given or evidenced ; or

(15) Any other matter or course of conduct which, by recital in
the resolution authorizing or providing for the bonds, is declared to
further secure the payment of the principal of or interest on the
bonds.

All such provisions of a resolution authorizing or providing for
the bonds and of such covenants and agreements shall constitute
valid and legally binding contracts between the county and the
several holders of the bonds, regardless of the time of issuance of
such bonds, and shall be enforceable by any such holder or holders
by mandamus or other appropriate action, suit or proceeding at law
or in equity in any court of competent jurisdiction.

2. An emergency exists and this act is in force from its passage.