CHAPTER 137

An Act to provide for the creation of the Chincoteague-Assateague Bridge
and Beach Authority; to provide for the governing body thereof, and
the appointment, powers and duties of the same; to define terms; to
provide for the construction, maintenance and operation of certain
projects; to provide for the issuance of certain bonds and the terms
and conditions thereof ; to authorize the acceptance of certain property,
the purchase and acquisition of property and interests therein, and

- to give the consent of the Commonwealth to the use of certain marsh-
lands and sub-aqueous soil.

rap ows
CH. 137] ACTS OF ASSEMBLY 141

Be it enacted by the General Assembly of Virginia:
1. § 1. (a) “Town” means the Town of Chincoteague.

(b) “County” means the County of Accomack.

(c) “Governing body” means council in the case of the town and board
of supervisors in the case of the county.

(d) “Authority” means the political subdivision created by this act.

(e) “Board” means the Board of Commissioners of the political sub-
division created by this act.

(f) “Project” means a bridge or bridges from Piney Island to Assa-
teague Island together with all necessary and convenient approaches, roads
and streets used in connection with such bridge or bridges and beaches and
beach facilities convenient to such roads and streets.

(g) The term “cost of project”, as applied to a project to be acquired
by purchase or by condemnation, shall include the purchase price or the
amount of the award, cost of improvements, financing charges, interest
during any period of disuse before completion of improvements, cost of
traffic estimates and of engineering and legal expenses, plans, specifications
and surveys, estimates of cost and of revenues, other expenses necessary
or incident to determining the feasibility or practicability of the enter-
prises, administrative expense and such other expenses as may be necessary
or incident to the financing herein authorized and the acquisition of the
project and the placing of the project in operation.

(h) The term “cost of project”, as applied to a project to be con-
structed shall embrace the cost of construction, the cost of all lands,
properties, rights, easements and franchises acquired, which are deemed
necessary for such construction, the cost of all machinery and equipment,
financing charges, interest prior to and during construction, and for one
year after completion of construction, cost of traffic estimates and en-
gineering data, engineering and legal expenses, cost of plans, specifications
and surveys, estimates of cost and of revenues, other expenses necessary
or incident to determining the feasibility or practicability of the enterprise,
administrative expense and such other expenses as may be necessary or
incident to the financing herein authorized, the construction of the project,
the placing of the project in operation and the condemnation of property
necessary for such construction and operation.

(i) The word “owner” shall include all individuals, incorporated com-
panies, copartnerships, societies or associations having any title or interest
in any property, rights, easements or franchises authorized to be acquired
by this chapter.

(j) “Federal Government” includes the United States of America or
any department, agency or instrumentality thereof corporate or otherwise.
§ 2. The Authority may, subject to the provisions of this article:

(1) Acquire by purchase or by condemnation, construct, improve,
operate and maintain any one or more of the projects hereinbefore men-
tioned and included in the undertaking hereinbefore defined in this chapter;

(2) Issue revenue bonds of the Authority payable solely from earn-
ings, to pay the cost of such projects; and

(3) Fix and collect tolls and other charges for the use of such projects.

The cost of such projects shall be paid solely from the proceeds of the
revenue bonds or from such proceeds and from any grant or contribution
which may be made thereto pursuant to the provisions of this chapter.

§ 3. There is hereby created a political subdivision of the Common-
wealth designated as the Chincoteague-Assateague Bridge and Beach Au-
thority with such powers as are set forth in this act.

§ 4. In any suit, action or proceeding involving the validity or en-
forcement of or relating to any contract of or action by the Authority, the
Authority shall be conclusively presumed to have been established and at
142 ACTS OF ASSEMBLY [vA., 1956

least once a year, the Authority shall file with the Governor a report of its
activities for the preceding year.

§ 5. All powers, rights and duties conferred by this act or other
law upon the Authority shall be exercised by the Board of Commissioners
of the Authority. The Board shall consist of five members chosen as
follows: the mayor of the town, ex officio, and four members designated
by the judge of the circuit court of the county of Accomack as follows: one
member of the governing body of the town for a term of two years, one
resident of the town for a term of three years, one resident of Island
magisterial district of Accomack County for a term of four years, and one
resident of the county of Accomack from some other district for a term
of five years. Successors shall be appointed for terms of five years except
that vacancies occurring other than by expiration of term shall be filled
for the unexpired term.

§ 6. The Authority, whenever a reasonable 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, may acquire by condemnation
any lands, rights, easements, franchises and other property deemed neces-
sary or convenient or convenient for the construction of any project or
for securing a right of way leading to any such project or its approaches,
in the manner hereinafter provided. Such condemnation proceedings shall
be conducted and the compensation to be paid shall be ascertained and
paid in the manner provided by law for the condemnation of property under
Article 5 of Chapter 1 of Title 33.

Title to any property condemned by the Authority shall be taken in
the name of the Authority. The Authority shall be under no obligation to
accept and pay for any property condemned or any costs incidental to any
condemnation proceedings and shall, in no event, pay for the same except
from the funds provided by this chapter; and in any condemnation pro-
ceedings, the court having jurisdiction of the suit, action or proceedings
may make such orders as may be just to the Authority and to the owners
of the property to be condemned and may require an undertaking or other
security to secure such owners against any loss or damage to be sustained
by reason of the failure of the Authority to accept and pay for the property,
but such undertaking or security shall impose no liability upon the Au-
thority, except such as may be paid from the funds provided under the
authority of this chapter.

§ 7. The Authority may construct, whenever it shall deem such con-
struction expedient, any of the projects authorized by this chapter. The
Authority may purchase solely from funds provided under the authority
of this chapter, such lands, structures, rights of way, franchises, ease-
ments and other interests in lands, including lands under water and
riparian rights of any person, copartnership, association, railroad or other
corporation, or municipal or political subdivision, deemed necessary for
the construction of any such project, upon such terms and at such prices
as may be considered by it to be reasonable and can be agreed upon be-
tween it and the owner thereof and may take title thereto in the name of
the authority. The State hereby consents to the use of all lands lying under
water and marshlands, which are within the State and are necessary for
the construction and operation of any project and the approaches and
appurtenances thereto, which may be constructed under the provisions of
this chapter. All public or private property damaged or destroyed in carry-
ing out the powers granted hereunder shall be restored or repaired and
placed in their original condition, as nearly as practicable, or adequate
compensation made therefor, out of the funds provided under the au-
thority of this chapter.
§ 8. Upon the letting of a contract for the construction of a project
under the provisions of this chapter, the Authority shall proceed with
the construction of any roads or streets which may be necessary to con-
nect such project with roads or streets in the town or county of Accomack,
and to complete the construction of such connecting roads or streets on
or before the date such project shall be open for traffic.

§ 9. The board may provide, by resolution at one time or from time
to time, for the issuance of revenue bonds of the Authority for the purpose
of paying all or any part of the cost hereinabove defined of any one or more
projects as hereinabove defined. The principal and interest of such bonds
shall be payable solely from the special fund herein provided for such
payment. The revenue bonds issued hereunder by the Authority shall be
issued subject to the provisions of the Constitution of the State of Virginia
and the statutes of the State.

§ 10. Revenue bonds issued under the provisions of this chapter shall
not be deemed to constitute a debt of the State or a pledge of the faith
and credit of the State, but such bonds shall be payable solely from the
funds herein provided therefor, from tolls and revenues. All such. bonds
shall state on their face that the State is not obligated to pay the same
or the interest thereon, and that the faith and credit of the State are not
pledged to the payment of the principal or interest of such bonds. The
issuance of revenue bonds under the provisions of this chapter shall not
directly or indirectly or contingently obligate the State to levy or to pledge
any form of taxation whatever therefor or to make any appropriation for
their payment, other than to appropriate available funds derived as rev-
enues from tolls and charges collected under this chapter.

§ 11. The bonds of such issue shall be dated, shall bear interest at
such rate or rates not exceeding five per centum per annum, payable semi-
annually and shall mature at such time or times, not exceeding forty years
from their date or dates, as may be determined by the board, and may
be made redeemable before maturity, at the option of the board, at such
price or prices and under such terms and conditions as may be fixed by
the board prior to the issuance of the bonds. The principal and interest
of such bonds may be made payable in any lawful medium. The board 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 interest thereof,
which may be at any bank or trust company within or without the State.
In case any officer whose signature shall appear on the bonds shall cease
to be such officer before the delivery of such bonds, such signature shall
nevertheless be valid and sufficient for all purposes the same as if he had
remained in office until such delivery. All revenue bonds issued under
the provisions of this chapter shall have and are hereby declared to have,
as between successive holders, all the qualities and incidents of negotiable
instruments under the negotiable instruments law of the State. Such
bonds and the income thereof shall be exempt from all taxation within the
State. The bonds may be issued in coupon or in registered form, or both,
as the board may determine, and provision may be made for the registra-
tion of any coupon bond as to principal alone and also as to both principal
and interest and for the reconversion of any bonds registered as to both
principal and interest into coupon bonds. Prior to the preparation of
definite bonds, the board may, under like restrictions, issue temporary
bonds with or without coupons, exchangeable for definitive bonds upon
the issuance of the latter. The board may also provide for the replace-
ment of any bond which shall become mutilated or be destroyed or lost.

§ 12. Such revenue bonds may be issued without any other pro-
ceedings or the happening of any other conditions or things than those
proceedings, conditions and things which are specified and required by
this article. .

§ 13. The Authority may sell such bonds in such manner and for
such price as it may determine to be fore the best interests of the Authority,
but no such sale shall be made at a price so low as to require the payment
of interest on the money received therefor at more than five per centum
per annum, computed with relation to the absolute maturity of the bonds
in accordance with standard tables of bond values, excluding, however,
from computations the amount of any premium to be paid on redemption
of any bonds prior to maturity.

§ 14. The proceeds of such bonds shall be used solely for the pay-
ment of the cost of the project or projects for which they are issued and
shall be disbursed by the board under such restrictions, if any, as the
board may provide. If the proceeds of the bonds of any issue, by error
of estimates or otherwise, shall be less than the cost of the project or
projects on account of which such bonds are issued, additional bonds may
in like manner be issued to provide the amount of such deficit and unless
otherwise provided in the resolution authorizing the issuance of the bonds
or in the trust indenture hereinafter mentioned shall be deemed to be of
the same issue and shall be entitled to payment from the same fund with-
out preference or priority of the bonds first issued for the same project
or projects. If the proceeds of bonds issued for any project or projects
shall exceed the cost thereof, the surplus shall be paid into the fund
pene iiakter provided for the payment of principal and interest of such

onds.

§ 15. The board may, in its discretion, couple or unite into one unit
for financing purchases any two or more of such projects, whether acquired
by purchase or condemnation or constructed, and revenue bonds of a
single issue may be issued for the purpose of paying the cost of any one
or more projects.

§ 16. All moneys received pursuant to the authority of this chapter,
whether as proceeds from the sale of revenue bonds, as grants or other
contributions, or as tolls and revenues, shall be held and applied solely
as provided in this chapter. The board shall, in the resolution authorizing
the issuance of bonds or in the trust indenture, provide for the payment
of the proceeds of the sale of the bonds and the tolls and revenues to be
received to any officer, agency, bank or trust company, who shall act as
trustee of such funds, and hold and apply the same to the purposes hereof,
subject to such regulations as this article and such resolution or trust
indenture may provide.

All moneys paid to the board pursuant to the provisions of this chapter
are hereby appropriated for the purpose of carrying out the provisions
of this chapter.

§ 17. In the discretion of the board, each or any issue of revenue
bonds may be secured by a trust indenture 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 outside of the State. Such trust
indenture may pledge tolls and revenues to be received, but no such trust
indenture shall convey or mortgage any project or any part thereof. Either
the resolution providing for the issuance of revenue bonds or such trust
indenture may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and proper
and not in violation of Jaw, including covenants setting forth the duties
of the Authority in relation to the acquisition, construction, improvement,
maintenance, operation, repair and issuance of the projects and the custody,
safeguarding and application of all moneys. Such resolution or trust
indenture may also provide that the project or projects shall be acquired,
or acquired and improved, or constructed and paid for under the super-
vision and approval of consulting engineers employed or designated by
the Authority and satisfactory to the original purchasers of the bonds
issued therefor and may also require that the security given by con-
tractors and by any depository of the proceeds of the bonds or revenues
of the project or projects or other moneys pertaining thereto be satis-
factory to such purchasers. Any bank or trust company incorporated under
the laws of this State may act as such depository and furnish such in-
demnifying bonds or pledge such securities as may be required by the
Authority. Such indenture may set forth the rights and remedies of the
bondholders and of the trustee and may restrict the individual right of
action of bondholders as is customary in trust indentures securing bonds
and debentures of corporation. In addition to the foregoing, such trust
indenture may contain such other provisions as the Authority may deem
reasonable and proper for the security of the bondholders. Except as
in this article otherwise provided, the Authority may provide, by resolu-
tion or by such trust indenture, that after the payment of the proceeds
of the sale of the bonds and the revenues of the project or projects the
Authority will immediately transfer or pay same over to such officer,
board or depository as it may determine for the custody thereof and for
the method of disbursement thereof, with such safeguards and restrictions
as it may determine. All expenses incurred in carrying out such trust
indenture may be treated as a part of the cost of maintenance, operation
and repairs of the project or projects affected by such indenture.

§ 18. The Authority shall fix and revise from time to time as may
be necessary tolls for the use of each project or projects on account of
which bonds are issued under the provisions of this article and shall
charge and collect the same and may contract with any person, partner-
ship, association or corporation desiring the use of such project or proj-
ects, approaches and appurtenances, and any part thereof, for placing
thereon water, gas, oil pipe lines, telephone, telegraph, electric light or
power lines, or for any other purpose, and may fix the terms, conditions
and rates and charges for such use. Such tolls shall be so fixed and ad-
justed in respect of the aggregate of tolls from the project or projects
on account of which a single issue of bonds is issued under this article,
as to provide a fund sufficient with other revenues of such project or
projects, if any, to pay (a) the cost of maintaining, repairing and oper-
ating such project or projects unless such cost shall be otherwise provided
for and (b) such bonds and the interest thereon as the same shall become
due. Such tolls shall not be subject to supervision or regulation by any
other State commission, board, bureau or agency.

§ 19. The tolls and all other revenues derived from the project or
projects for which a single issue of bonds is issued, except such part there-
of as may be required to pay the cost of maintaining, repairing and oper-
ating such project or projects and to provide such reserves therefor as may
be provided for in the resolution authorizing the issuance of such bonds or
in the trust indenture, shall be set aside at such regular intervals as may
be provided in such resolution or such trust indenture, in a sinking fund
which is hereby pledged to, and charged with the payment of: (1) the
interest upon such bonds as such interest shall fall due, (2) the principal
of the bonds as the same shall fall due, (3) the necessary charges of pay-
ing agents for paying principal and interest, and (4) any premium upon
bonds retired by call or purchase as herein provided.

The use and disposition of such sinking fund shall be subject to such
regulations as may be provided in the resolution authorizing the issuance
of the bonds or in the trust indenture but, except as may otherwise be
provided in such resolution or trust indenture, such sinking fund shail be
146 ACTS OF ASSEMBLY [va., 1956

a fund for all such bonds without distinction or priority of one over
another. Subject to the provisions of the resolution authorizing the issu-
ance of the bonds or of the trust indenture, any moneys in such sinking
fund in excess of an amount equal to one year’s interest on all bonds then
outstanding may be applied to the purchase or redemption of bonds. All
bonds so purchased or redeemed shall forthwith be cancelled and shall not
again be issued. ;

_§ 20. When the particular revenue bonds issued for any project or
projects and the interest thereon shall have been paid, or a sufficient
amount shall have been provided for their payment and shall continue to
be held for that purpose, the Authority shall cease to charge tolls for the
use of such project or projects and thereafter such project or projects shall
be free; provided, however, that the Authority may thereafter charge
tolls for the use of any such project in the event that tolls are required for
maintaining, repairing and operating such project due to the lack of funds
from other sources than tolls or in the event that such tolls shall have
been pledged by the Authority to the payment of revenue bonds issued
under the provisions of the article for another project or projects. But
any such pledge of tolls of a project to the payment of bonds issued for
another project shall not be effectual until the principal and interest of
the bonds issued for the first mentioned project shall have been paid or
provision made for their payment.

§ 21. The Authority, in addition to the revenues which may be re-
ceived from the sale of revenue bonds and from the collection of tolls and
other revenues derived under the provisions of this chapter, shall have
authority to receive and accept from any federal agency or the State or any
State agency or any other public or private body contributions of either
money or property or other things of value, to be held, used and applied for
the purposes of this chapter provided.

§ 22. Any holder of revenue bonds issued under the provisions of this
chapter or any of the coupons attached thereto and the trustee under the
trust indenture, if any, except to the extent the rights herein given may
be restricted by resolution passed before issuance of the bonds or by the
trust indenture, may, either at law or in equity, by suit, action, mandamus
or other proceedings protect and enforce any and all rights under the laws
of the United States or of this State or granted hereunder or under such
resolution or trust indenture and may enforce and compel performance of
all duties required by this chapter, or by such resolution or trust indenture,
to be performed by the State or by the Authority, or any officer thereof,
including the fixing, charging, and collecting of tolls for the use of such
project or projects.

§ 23. The Authority may make and enter into all contracts or agree-
ments necessary or incidental to the execution of its powers under this
chapter and may employ engineering, architectural and construction ex-
perts and inspectors, brokers and such other employees as may be deemed
necessary, who shall be paid such compensation as may be provided in ac-
cordance with law. All such compensation and all expenses incurred in
carrying out the provisions of this chapter shall be paid solely from funds
provided under the authority of this chapter and no liability or obligation
shall be incurred hereunder beyond the extent to which money shall have
been provided under the authority of this chapter. The Authority may
exercise any powers which are necessary or convenient for the execution of
its powers under this chapter.

§ 24. The Authority may provide by resolution for the issuance of
revenue refunding bonds of the Authority, subject to all of the provisions
of § 10, for the purpose of refunding any revenue bonds issued under the
provisions of this chapter and then outstanding. The issuance of such
revenue refunding bonds, the maturities and other details thereof, the
CHS. 137, 138] ACTS OF ASSEMBLY 147

rights of the holders thereof and the duties of the State and of the Au-
thority in respect to the same shall be governed by the foregoing provisions
of this chapter, insofar as the same may be applicable, and by the following
provisions:

(1) No revenue refunding bonds shall be delivered, unless delivered
in exchange for revenue bonds to be refunded thereby, except in the amount
necessary to provide for the payment of matured or redeemable revenue
bonds or revenue bonds maturing or redeemable within three months,
including any redemption premium thereon.

(2) No revenue refunding bonds shall be issued, unless issued to
refund revenue bonds which have matured or will mature within three
months or unless the interest rate of the revenue refunding bonds shall
be at least one-fourth of one per centum less than the interest rate borne
by the revenue bonds to be refunded.

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