CHAPTER 662

An Act to provide for the creation of the Cedar Island Bridge and Beach
Authority; to provide for the governing body thereof, and the ap-
pointment, 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 condi-
tions 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 marshlands
and subaqueous soil.

TU een
Be it enacted by the General Assembly of Virginia:
1. § 1. (a) “County” means the county of Accomack.

(b) “Governing body” means board of supervisors. .

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

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

(e) “Project” means a bridge or bridges from Cedar Island now
known as Ocean City, Virginia, to a point in Lee District of Accomack
County, Virginia, 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. __

(f)_ 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 neces-
sary or incident to the financing herein authorized and the acquisition of
the project and the placing of the project in operation. .

(g) 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, prop-
erties, rights, easements and franchises acquired, which are deemed neces-
sary 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 engi-
neering 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 enter-
prise, 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.

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

(i) “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-
Boned 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 contribu-
tion 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 Cedar Island Bridge and Beach Authority 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
CH. 662] ACTS OF ASSEMBLY 1013

at 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 designated by
the judge of the circuit court of the county of Accomack as follows: two
residents of the county of Accomack for terms of five years, two residents
of the county of Accomack for terms of four years, and one resident of
the county of Accomack for a term of one year. Successors. shall be
appointed for terms of five years except that vacancies oceurring 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 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 man-
ner 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
proceedings, 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 Authority, 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
construction 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, easements
and other interests in lands, including lands under water and riparian
rights of any person, copartnership, association, railroad or other corpora-
tion, or municipal or political subdivision, deemed necessary for the con-
struction 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 between 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 authority
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 connect
such project with roads or streets in the town or county of Accomack, and
1014 ACTS OF ASSEMBLY [va., 1956

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 appro-
priation for their payment, other than to appropriate available funds
derived as revenues from tolls and charges collected under this chapter.

§ 11. The bonds issued hereunder shall be issued in accordance with
Chapter 19 of Title 15 of the Code. The bonds of such issue shall be dated,
shall bear interest at such rate or rates not exceeding five per centum
per annum, payable semiannually 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 in the place or places of payment of prin-
cipal 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 bond 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 registration 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 defiinitive bonds upon the issuance of the
latter. The board may also provide for the replacement 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.
CH. 662] ACTS OF ASSEMBLY 1015

§ 138. 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,
but no such sale shall be made at a price so low as to require the pay-
ment 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 without 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 hereinafter provided for the payment of principal and interest of
such bonds.

§ 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.

§ 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 pro-
visions 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 law, including covenants setting forth the
duties of the Authority in relation to the acquisition, construction, im-
provement, maintenance, operation, repair and issuance of the projects
and the custody, safeguarding and application of all moneys. Such reso-
lution 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 supervision 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
1016 ACTS OF ASSEMBLY [va., 1956

by contractors and by any depository of the proceeds of the bonds or
revenues of the project or projects or other moneys pertaining thereto
be satisfactory to such purchasers. Any bank or trust company incor-
porated under the laws of this State may act as such depository and

urnish such indemnifying 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 inden-
tures securing bonds and debentures of corporations. In addition to the
foregoing, such trust indenture may contain such other provisions as the
Authority may deem reasonable and proper for the pequetty of the bond-
holders. Except as in this article otherwise provided, the Authority may
provide, by resolution 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 safe-
guards 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 pro-
jects, 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 toll 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 opera-
ting 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
thereof as may be required to pay the cost of maintaining, repairing
and operating 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 paying 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 shall
be a fund for all such bonds without distinction or priority of one over
CH. 662] ACTS OF ASSEMBLY 1017

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
prosects. But any such pledge of tolls of a project to the payment of

nds issued for another project shall not be effectual until the principal
and interest of the bonds issued for the first mentioned projects shall
have been paid or provision made for their payment.

§ 21. The Authority, in addition to the revenues which may be
received 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 contribu-
tions 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
agreements necessary or incidental to the execution of its powers under
this chapter and may employ engineering, architectural and construction
experts and inspectors, brokers and such other employees as may be
deemed necessary, who shall be paid such compensation as may be provided
in accordance 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 Author-
ity 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
1018 ACTS OF ASSEMBLY [va., 1956

rights of the holders thereof and the duties of the State and of the Author-
ity 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 follow-
ing 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. .

§ No project shall be undertaken hereunder without the prior
written consent of the Cedar Island Bridge Corporation.

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