CHAPTER 322

ACT providing for the acquisition, construction, improve-
ment, operation and maintenance of a turnpike to facilitate
vehicular traffic between Virginia Beach and points on the
coast of North Carolina; creating for said purpose the
Coastal Turnpike Authority; conferring powers and impos-
ing duties on said Authority; authorizing the issuance by
said Authority of turnpike revenue bonds of said Authority,
payable solely from earnings of said turnpike, to pay the
cost of said turnpike and improvements thereof; providing
that no debt of said Authority, of the State of Virginia, or
of any county, city, district, or political subdivision thereof,
shall be incurred in the exercise of any of the powers
granted by this Act; providing for the collection of tolls
for the payment of said bonds and for the cost of mainte-
nance, operation and repair of said turnpike; providing for
the execution of a trust indenture; to secure the payment of
said bonds without mortgaging or encumbering said turn-
pike; authorizing the issuance of revenue refunding bonds;
prescribing conditions upon which said turnpike shall be-
come free from tolls; making such turnpike and such bonds
exempt from taxation; providing for condemnation; and
prohibiting, under certain conditions, the construction or
maintenance of competing means of transit between Vir-
ginia Beach and points on the coast of North Carolina.

[ H 608 ]

Approved April 4, 1950

Whereas, under and by virtue of an Act of the General
mbly of North Carolina entitled “An Act to authorize the
organization of municipal corporations for the purpose of con-
structing and operating toll roads’, approved April 18, 1949, a
public, nonprofit corporation known as The Carolina-Virginia
Coastal Highway has been organized for the purpose of con-
structing and operating a toll road from a point near Nag’s
Head, North Carolina, to a point on the North Carolina-Virginia
boundary line a few hundred feet west of the Atlantic Ocean;
and

Whereas, an extension of said proposed toll road into Vir-
ginia, from said point on the North Carolina-Virginia boundary
line to a point at or near Virginia Beach, would facilitate vehicu-
lar traffic in this State; Now, Therefore,

Be it enacted by the General Assembly of Virginia:

1. § 1. Short Title—This Act may be cited as the “Coastal
Turnpike Act”.

§ 2. Definitions.—As used in this Act, the following words
and terms shall have the following meanings, unless the context
shall indicate another or different meaning:

(a) The word “Authority” shall mean the Coastal Turn-
pike Authority, a public corporation of the State of Virginia,
hereinafter created.

(b) The words “the turnpike” shall mean the turnpike to
be constructed, as hereinafter provided, from a point at or near
Virginia Beach in Princess Anne County, to a point on the
Virginia-North Carolina boundary line near the Atlantic Ocean,
and shall include, but not be limited to, all bridges, tunnels,
overpasses, underpasses, interchanges, entrance plazas, ap-
proaches, toll houses, service areas, service stations, service
facilities, communications facilities, and administration, stor-
age and other buildings which the Authority may deem neces-
sary for the operation of said turnpike, together with all prop-
erty, rights, easements and interests which may be acquired by
the Authority for the construction or the operation of such
turnpike.

(c) The word “bonds” or the words “turnpike revenue
bonds” shall mean bonds of the Authority authorized under the
provisions of this Act.

(d) The word “owner” shall include all individuals, copart-
nerships, associations or corporations having any title or inter-
est in any property, rights, easements and interests authorized
to be acquired by this Act.

§ 3. Coastal Turnpike Authority.—There is hereby created
a body corporate and politic, to be known as the “Coastal Turn-
pike Authority”. The Authority is hereby constituted an instru-
mentality of the State of Virginia, and the exercise by the
Authority of the powers conferred by this Act in the construc-
tion, maintenance, repair and operation of the turnpike, shall
be deemed and held to be an essential governmental function of
the State. The Authority shall consist of three members, each
of whom shall be a resident of the County of Princess Anne.
Each member of the Authority shall be appointed by the Gover-
nor for a term of four years and shall serve until his successor
is appointed and has qualified; except that of the first appoint-
ments hereunder, one shall be for a term of two years and one
for a term of three years, and they shall serve until their respec-
tive successors are appointed and have qualified. The term of
each of the first appointees hereunder shall be designated by
the Governor. Each member of the Authority may be removed
from office by the Governor, for cause. Each member of the
Authority shall, before entering upon the performance of his
duties, take and prescribe the oath prescribed by § 34 of the
Constitution of Virginia before any judge of any court of record
in this State.

Any vacancy in the membership of the Authority occurring
otherwise than by expiration of term shall be filled in the same
manner as the original appointment, but for the unexpired term
only.

The Governor shall designate one of the members of the
Authority as chairman thereof and another member as vice:
chairman thereof. The chairman and vice-chairman so desig-
nated shall serve as such at the pleasure of the Governor and
until their respective successors have been designated. The
Authority shall elect a secretary and treasurer, who need not
be a member. Two members of the Authority shall constitute
a quorum, and the vote of two members shall be necessary for
any action taken by the Authority. No vacancy in the member-
ship of the Authority shall impair the right of a quorum to
exercise all the rights and perform all the duties of the
Authority.

Before the issuance of any turnpike revenue bonds under
the provisions of this Act, each member of the Authority shal]
execute a surety bond in the penal sum of twenty-five thousand
dollars ($25,000), and the secretary and treasurer shall exe-
cute a surety bond in the penal sum of fifty thousand dollars
($50,000), each such surety bond to be conditioned upon the
faithful performance of the duties of the office of such member
or secretary and treasurer, as the case may be, to be executed
by a surety company authorized to transact business in the State
of Virginia, as surety, and to be approved by the Attorney
General and filed in the office of the Secretary of the Common-
wealth.

The members of the Authority shall not receive compensa-
tion for their services as members of the Authority. Each
member shall be reimbursed by the Authority for his actual
expenses necessarily incurred in the performance of his duties.

§ 4. General Grant of Powers.—The Authority shall have
perpetual succession and shall have the following powers:

(a) To adopt by-laws for the regulation of its affairs and
the conduct of its business;

(b) To adopt a corporate seal and alter the same at
pleasure ;

(c) To maintain an office at such place or places within
the State as it may designate;

(d) To sue and to be sued in its name; |

(e) To construct, maintain, repair and operate the turn
pike at such location as shall be adopted by the Authority ;

(f) To issue turnpike revenue bonds of the Authority, for
any of its corporate purposes, payable solely from the tolls and
revenues pledged for their payment, and to refund its bonds, all
as provided in this Act;

) To fix and revise, from time to time, and charge and
collect tolls for transit over the turnpike constructed by it;

(h) To establish rules and regulations for the use of the
turnpike;

(i) To acquire in the name of the Authority, and to
hold and dispose of real and personal property in the exercise
of its powers and the performance of its duties under this Act;

(j) To purchase, solely from funds provided under this
Act, such lands, buildings, structures, rights of way, franchises,
easements and interests in lands deemed by the Authority to
be necessary for the construction, operation or protection of the
turnpike, upon such terms and at such prices as may be con-
sidered by it to be reasonable and can be agreed upon between
it and the owner thereof, and to take title thereto in the
name of the Authority. Whenever a price cannot be agreed
upon, or whenever the owner is legally incapacitated, or is
absent, or is unable to convey valid title, or is unknown, the
Authority is hereby authorized and empowered to acquire any
such property by condemnation in accordance with and subject
to the provisions of any and all laws mutatis mutandis, applic-
able to the condemnation of property by railroad companies,
under the laws of the State of Virginia, and to take title thereto
in the name of the Authority ;

(k) To designate the locations of and establish, limit and
control such points of ingress to and egress from the turnpike
as may be necessary or desirable in the judgment of the Author-
ity to insure the proper operation and maintenance of the turn-
pike, and to prohibit entrance to the turnpike from any point
or points not so designated ;
(1) To make and enter into all contracts and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under this Act;

(m) To employ consulting engineers, attorneys, account-
ants, construction and financial experts, superintendents, man-
agers and such other employees and agents as may be necessary
in its judgment; to fix their compensation; and to promote and
discharge such employees and agents;

(n) To accept loans and grants of money or materials or
property, at any time, from the United States of America or
the State of Virginia or any agency or instrumentality thereof,
or any person, firm or corporation upon such terms and condi-
tions as the lender or grantor may impose;

(o) To do all acts and things necessary or convenient to
carry out the powers expressly granted in this Act.

§ 5. Incidental powers subject to approval by the State
Highway Commissioner.—The Authority shall have power to
construct grade separations at intersections of the turnpike
with public highways, and to change and adjust the lines and
grades of such highways so as to accommodate the same to the
design of such grade separations. The cost of such grade sepa-
rations and any damage incurred in changing and adjusting the
lines and grades of such highways shall be ascertained and paid
by the Authority as a part of the cost of the turnpike.

In addition to the foregoing powers, the Authority and its
authorized agents and employees may enter upon any lands,
waters and premises in the State for the purpose of making sur-
veys, soundings, drillings and examinations as it may deem
necessary or convenient for the purposes of this Act, and such
entry shall not be deemed a trespass, nor shall such an entry
for such purpose be deemed an entry under any condemnation
proceedings which may be then pending. The Authority shall
make reimbursement for any actual damages resulting to such
lands, waters and premises as the result of such activities. |

§ 6. Revenue Bonds.—The Authority is hereby authorized
to provide by resolution, at one time or from time to time, for
the issuance of revenue bonds of the Authority for any of its
corporate purposes, including the refunding of its bonds. The
principal of and the interest on any issue of such bonds shall
be payable solely from and be secured by a pledge of tolls and
revenues of all or any part of the turnpike financed in whole or
in part with the proceeds of such issue or with the proceeds of
bonds refunded or to be refunded by such issue. The bonds of
zach issue shall be dated, shall bear interest at such rate or
rates, shall mature at such time or times, not exceeding thirty-
ive years from their date or dates, as may be determined by the
Authority, and may be made redeemable before maturity, at the
option of the Authority, at such price or prices and under such
terms and conditions as may be fixed by the Authority prior to
the issuance of the bonds. The Authority shall determine the
form of the bonds, including any interest coupons to be attached
thereto, and shall fix the denomination or denominations of the
bonds and the place or places of payment of principal and in-
terest, which may be at any bank or trust company within or
without the State. The bonds shall be signed by the chairman
of the Authority or shall bear his facsimile signature, and the
corporate seal of the Authority shall be impressed thereon and
attested by the secretary and treasurer of the Authority, and
any coupons attached thereto shall bear the facsimile signature
of the chairman of the Authority. In case any officer whose
signature or a facsimile of whose signature shall appear on any
bonds or coupons shall cease to be such officer before the de-
livery of such bonds, such signature or such facsimile shall
nevertheless be valid and sufficient for all purposes, the same as
if he had remained in office until such delivery. All bonds issued
under the provisions of this Act shall have and are hereby de-
clared to have all the qualities and incidents of negotiable in-
struments under the negotiable instruments law of this State.
The bonds may be issued in coupon or in registered form, or
both, as the Authority may determine, and provision may be
made for the registration of any coupon bonds as to principal
alone and also as to both principal and interest, and for the re-
conversion into coupon bonds of any bonds registered as to both
principal and interest. The Authority may sell such bonds in
such manner and for such price as it may determine to be for
the best interests of the Authority. The proceeds of the bonds
of each issue shall be disbursed in such manner and under such
restrictions, if any, as the Authority may provide in the resolu-
tion authorizing the issuance of such bonds or in the trust
agreement hereinafter mentioned securing the same.

Prior to the preparation of definitive bonds, the Authority
may, under like restrictions, issue interim receipts or temporary
bonds, with or without coupons, exchangeable for definitive
bonds when such bonds shall have been executed and are avail-
able for delivery. The Authority may also provide for the re-
placement of any bonds which shall become mutilated or shal]
be destroyed or lost. Bonds may be issued under the provisions
of this Act without obtaining the consent of any department,
division, commission, board, bureau or agency of the State, and
without any other proceedings or the happening of any other
conditions or things than those proceedings, conditions or things
which are specifically required by this Act.

§ 7. Bonds not to Constitute a Debt or Pledge of Taxing
Power.—Revenue bonds issued under the provisions of this Act
shall not be deemed to constitute a debt of the Authority or of
the State of Virginia or of any county, city, district, or political
subdivision thereof, or a pledge of the faith and credit of the
State or any county, city, district, or political subdivision there-
of, but such bonds shall be payable solely from the funds herein
provided therefor from tolls and revenues. The issuance of reve-
nue bonds under the provisions of this Act shall not directly or
indirectly or contingently obligate the Authority, the State or
county, city or district therein or any political subdivision there-
of, to levy or to pledge any form of taxation whatever therefor.
All such revenue bonds shall contain a statement on their face
substantially to the foregoing effect.

§ 8. Trust Agreement.—In the discretion of the Authority
any bonds issued under the provisions of this Act may be se-
cured by a trust agreement by and between the Authority and
a corporate trustee, which may be any trust company or bank
having the powers of a trust company, within or without the
State. Such trust agreement or the resolution providing for the
issuance of such bonds (subject to the provisions of § 6 of this
Act) may pledge or assign tolls or other revenues to which the
Authority’s right then exists or may thereafter come into ex-
istence, and the moneys derived therefrom, and the proceeds of
such bonds, but shall not convey or mortgage the turnpike or
any part thereof. Such trust agreement or resolution provid-
ing for the issuance of such bonds may contain such provisions
for protecting and enforcing the rights and remedies of the bond-
holders as may be reasonable and proper and not in violation of
law, including covenants setting forth the duties of the Au-
thority in relation to the acquisition of property and the con-
struction, improvement, maintenance, repair, operation and in-
surance of the turnpike, the rates of tolls and revenues to be
charged, the payment, security or redemption of bonds, and
the custody, safeguarding and application of all moneys, and
provisions for the employment of consulting engineers in con-
nection with the construction or operation of the turnpike. It
shall be lawful for any bank or trust company incorporated
under the laws of this State which may act as depository of the
proceeds of bonds or of revenues to furnish such indemnifying
bonds or to pledge such securities as may be required by the
Authority. Any such trust agreements or resolution may set
forth the rights and remedies of the bondholders and of the
trustee, and may restrict the individual rights of action by bond-
holders. In addition to the foregoing, any such trust agreement
or resolution may contain such other provisions as the Authority
may deem reasonable and proper for the security of the bond-
holders. All expenses incurred in carrying out the provisions
of such trust agreement may be treated as a part of the cost of
the operation of the turnpike.

Any pledge of tolls or other revenues or other moneys made
by the Authority shall be valid and binding from the time when
the pledge is made; the tolls or other revenue or other moneys
so pledged and thereafter received by the Authority shall imme-
diately be subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge
shall be valid and binding as against all parties having claims of
any kind, in tort, contract or otherwise, against the Authority,
irrespective of whether such parties have notice thereof. Neither
the resolution nor any trust agreement by which a pledge is
created need be filed or recorded, except in the records of the
Authority.

§ 9. Revenues.—The Authority is hereby authorized to
fix, revise, charge and collect tolls for the use of the turnpike
and the different parts or sections thereof, and to contract with
any person, partnership, association or corporation desiring the
use of all or any part thereof, including the right of way adjoin-
ing the paved portion, for placing thereon telephone, telegraph,
electric light or power lines, gas stations, garages, stores, hotels
and restaurants, or for any other purpose, except for tracks for
railroad or railway use, and to fix the terms, conditions, rents
and rates or charges for such use. Such tolls shall be so fixed
and adjusted as to carry out and perform the terms and provi-
sions of any contract with or for the benefit of bondholders. Such
tolls shall not be subject to supervision or regulation by any
other commission, board, bureau or agency of the State. The
use and disposition of tolls and revenues shall be subject to the
provisions of the resolution authorizing the issuance of such
bonds or of the trust agreement securing the same.

§ 10. Trust Funds.—All moneys received pursuant to the
provisions of this Act, whether as proceeds from the sale of
bonds or as revenues, shall be deemed to be trust funds, to be
held and applied solely as provided in this Act. The resolution
authorizing the bonds of any issue or the trust agreement secur-
ing such bonds shall provide that any officer with whom, or any
bank or trust company with which, such moneys shall be de-
posited shall act as trustee of such moneys and shall hold and
apply the same for the purposes hereof, subject to such regula-
tions as this Act and such resolution or trust agreement may
provide.

§ 11. Remedies.—Any holder of bonds issued under the
provisions of this Act or of any of the coupons appertaining
thereto, and the trustee under any trust agreement, except to
the extent the rights herein given may be restricted by resolu-
tion passed before the issuance of the bonds or by such trust
agreement, may, either at law or in equity, by suit, action, man-
damus or other proceeding, protect and enforce any and all
rights under the laws of the State of Virginia or granted here-
inunder or such trust agreement or. the resolution authorizing
the issuance of such bonds, and may enforce and compel per-
formance of all duties required by this Act or by such trust
agreement or resolution to be performed by the Authority or
by any officer thereof, including the fixing, charging and collect-
ing of tolls.

§ 12. Exemption from Taxation.— The exercise of the
powers granted by this Act will be in all respects for the benefit
of the people of the State of Virginia, for the increase of their
commerce and prosperity, and for the improvement of their
health and living conditions, and as the operation and mainte-
nance of the turnpike by the Authority will constitute the per-
formance of essential governmental functions, the Authority
shall not be required to pay any taxes or assessments upon the
turnpike or any property acquired by the Authority under the
provisions of this Act, or upon the income therefrom, and the
turnpike and any property acquired or used by the Authority
under the provisions of this Act and the income therefrom, and
the bonds issued under the provisions of this Act, their transfer
and the income therefrom, shall be exempt from taxation.

§ 13. No Competitive Highway.—No franchise, rights or
privileges shall be granted or authorized by the State of Vir-
ginia or by any political subdivision thereof, for the construc-
tion or maintenance of any highway from a point at or near
Virginia Beach to the Virginia-North Carolina boundary line
near the Atlantic Ocean, and no such highway shall be con-
structed or established so long as any bonds issued under the pro-
visions of this Act shall remain outstanding, or until provision
shall first be made for the payment of the principal of and in-
terest on all such bonds. The provisions of this section shall
constitute a contract with the bondholder.

§ 15. Before issuing any revenue bonds under the pro-
visions of this Act, the Authority shall satisfy itself that a road
from the southern terminus of the Turnpike to a point near
Nag’s Head, North Carolina, (hereinafter referred to as the
North Carolina Road) will be constructed by a public corpora-
tion or agency of the State of North Carolina, (hereinafter re-
ferred to as the North Carolina Corporation). The Authority
is hereby authorized to make and enter into a contract or agree.
ment with the North Carolina Corporation containing one 01
more of the following described provisions, viz.:

(a) A provision whereby the Authority shall agree to con-
gtruct the Turnpike and to maintain and operate it until all reve.
nue bonds issued by the North Carolina Corporation to finance
the construction of the North Carolina Road shall have beer
paid, or until a sufficient amount for their payment shall have
been set aside in trust for the benefit of the holders of said reve-
nue bonds of the North Carolina Corporation;

(b) A provision whereby the North Carolina Corporatior
shall agree to construct the North Carolina Road and to main-
tain and operate it until all revenue bonds issued under this Act
shall have been paid, or until a sufficient amount for their pay-
ment shall have been set aside in trust for the benefit of the hold-
ers of said revenue bonds;

(c) Provisions whereby the Authority and the North Caro-
lina Corporation shall each agree to act as agent for the other
in the collection of tolls for vehicular traffic using both the Turn-
pike and the North Carolina Road;

d) Provisions under which tolls collected by either the
Authority or the North Carolina Corporation for traffic over
either the Turnpike or the North Carolina Road shall be appor-
tioned between the Authority and the North Carolina Corpora-
tion on the basis of their respective road mileages, on the basis
of their respective costs of operation, maintenance and debt
service, or on any other equitable basis; and

(e) Such other provisions as may be reasonable and proper
and not in violation of law to assure the construction, mainte-
nance and operation of the Turnpike and the North Carolina
Road and the payment of revenue bonds issued to finance their
construction.

§ 16. Miscellaneous.—The turnpike when constructed and
open to traffic shall be maintained and kept in good condition and
repair by the Authority. The turnpike shall also be policed and
operated by such force of police, toll takers and other operating
employees as the Authority may in its discretion employ.

§ 17. Cessation of Tolls—When all bonds issued under
the provisions of this Act to finance the turnpike and the interest
thereon shall have been paid, or a sufficient amount for the pay-
ment of all such bonds and the interest thereon to the maturity
thereof shall have been set aside in trust for the benefit of the
oondholders, the turnpike, if then in good condition and repair
0 the satisfaction of the State Highway Commission, shall be-
“ome a part of the State highway system, and shall thereafter
oe maintained by the State Highway Commission free from
olls.

§ 18. Act Liberally Construed.—This Act being necessary
or the welfare of the State and its inhabitants shall be liberally
construed to effect the purposes thereof.

§ 19. Severability—If any provision of this Act or the
ipplication thereof to any person or circumstance is held invalid,
such invalidity shall not affect other provisions or applications
of the Act which can be given effect without the invalid provi-
sions or application, and to this end the provisions of this Act
are declared to be severable.

§ 20. Inconsistent Laws Inapplicable.—All other general
or special laws, or parts thereof, inconsistent herewith, are here-
by declared to be inapplicable to the provisions of this Act.

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