CHAPTER 640

An Act to revise, rearrange, amend and recodify the general laws of Vir-
ginia, relating to the issuance of bonds and other funded indebted-
ness of counties, cities and towns; to that end to repeal Chapter 19
of Title 15 of the Code of Virginia, which chapter includes §§ 15-586
through 15-666.12, as amended, relating to bond issues of counties,
cities and towns generally; to amend the Code of Virginia by adding
thereto a new chapter numbered 19.1, which chapter includes new ar-
ticles numbered 1 through 8, and new sections numbered 15-666.18
through 15-666.68, relating to the issuance of bonds and other funded
indebtedness of counties, cities and towns generally, to repeal Article
2 of Chapter 9 of Title 22 of the Code of Virginia, which article tn-
cludes §§ 22-167 through 22-188.2, as amended; and to provide for
the completion of certain acts of governing bodies and county school

boards.
[H 608]
Approved April 1, 1958

Be it enacted by the General Assembly of Virginia:

1. That Chapter 19 of Title 15 of the Code of Virginia, which includes
8§ nee through 15-666.12, of the Code of Virginia, as amended, is re-
pealed.

2. That the Code of Virginia be amended by adding thereto a new
chapter numbered 19.1, which is divided into new articles numbered 1
through 8 and new sections numbered 15-666.13 through 15-666.68, the
new chapter, articles and sections being as follows:

CHAPTER 19.1
Article 1.
In General.

§ 15-666.13. This chapter shall be known and may be cited as the
“Public Finance Act of 1958”.

§ 15-666.14. Unless the contrary be expressly stated, nothing in
this chapter shall repeal, amend, impair or in any wise affect any act un-
der the provisions of which bonds have heretofore been issued and are now
outstanding, or any act, general or special, heretofore enacted, validating
bonds or any proceedings in connection with the issuance of bonds or any
special rights, privileges, restrictions or limitations now contained in any
city or town charter or in any act or acts amendatory thereof. Nothing in
this chapter shall repeal, amend, impair or in any wise affect any of the
provisions of any charter or special or local act authorizing or regulating
the issuance of bonds by a municipality, and bonds may be issued pursuant
to and in accordance with provisions of such charter or special or local
act and without regard to the requirements, restrictions or other provisions
of this chapter.

§ 15-666.15. As used in this chapter, the following words and terms
shall drs the following meanings, unless some other meaning is plainly
intended:
_ (a) The word “county” shall mean any county now or hereafter
existing in the Commonwealth of Virginia. .

(b) The word “municipality” shall mean any city or town in the
Commonwealth of Virginia, whether incorporated by a special act or
under a general law. ;

(c) The word “unit” shall mean any county cr municipality.

(d) The term “governing body” shall mean the board of supervisors,
council or other local legislative body, board, commission, or other legis-
lative authority having charge of the finances of any county, city or town,
and when the separate concurrence or approval of two or more sets of
such authorities is now required by law for the making of appropriations,
to the extent so required “governing body” shall mean and include both
or all of them.

(e) The word “bonds” shall mean obligations of a unit for the pay-
ment of money.

(f) The term “general obligation bonds” shall mean the bonds of a
unit for the payment of which the unit is required to levy ad valorem
taxes, including any obligations which may be additionally secured by a
pledge of revenues, special assessments or funds derived from any other
source.

(g) The term “revenue bonds” shall mean bonds of a unit for which
only the revenues of a project financed or refinanced by such bonds are
pledged to the payment of the principal of or interest on said bonds.

(h) The word “project” shall mean any public improvement or un-
dertaking for which the unit is authorized by law to appropriate money,
except for current expenses, including, without limiting the generality of
the foregoing, courthouses, jails, workhouses, poorhouses, school buildings,
firehouses, police stations, libraries, museums, armories, auditoriums, hos-
pitals and all other government buildings and halls, cemeteries, highways,
streets, alleys, curbs, sidewalks, gutters, bridges, boulevards, parks, play-
grounds, recreation centers, incinerators, fire fighting equipment, wharves,
docks, harbors, sea walls, beach improvements, storm sewers, culverts and
drains, and specific undertakings from which the unit may derive a rev-
enue (herein sometimes called “revenue producing undertakings”) such
as water, sewer, sewage disposal, and garbage and refuse collection and
disposal systems as defined in § 15-764.2, gasworks, electric light and
other lighting systems, airports, and offstreet parking facilities.

(i) The word “cost” as applied to any project or to extensions or
additions thereto shall include the purchase price of any project or prop-
erty acquired by the unit or the cost of acquiring all of the capital stock
of the corporation owning such project or property and the amount to be
paid to discharge all of its obligations in order to vest title to the same or
any part thereof in the unit, the cost of improvements, the cost of construc-
tion or reconstruction, the cost of all labor, materials, machinery and
equipment, the cost of all lands, property, rights, easements and franchises
acquired, financing charges, interest prior to and during construction and
for one year after completion of construction, cost of plans and specifica-
tions, surveys and estimates of cost and of revenues, cost of engineering
and legal services, and all other expenses necessary or incident to deter-
mining the feasibility or practicability of such acquisition, construction or
reconstruction, administrative expense and such other expenses as may
be necessary or incident to the financing of such project. Any obligation or
expense incurred by the unit in connection with any of the foregoing
items of cost may be regarded as a part of such cost and reimbursed
to the unit out of the proceeds of bonds issued to finance such project.

§ 15-666.16. There is hereby created a State Commission on Local
Debt, hereinafter called “Commission’’, composed of the Auditor of Public
Accounts, the State Treasurer, the State Tax Commissioner, and two
other members to be appointed by the Governor for terms of four years.
Vacancies shall be filled for the unexpired term. The members appointed
by the Governor shall receive a per diem of ten dollars a day for each day
spent on business of the Commission. All members shall receive their
necessary expenses incurred in performing their duties as members of the
Commission. The office of the Auditor of Public. Accounts may furnish
necessary clerical and secretarial assistance to the Commission. —_—

Upon the request of the governing body of any political subdivision of
the Commonwealth, the Commission shall advise the political subdivision
on all matters related to the planning, preparation and marketing of bonds
proposed to be issued by the political subdivision for any indebtedness to be
incurred by it, any part of which is not to be paid within a year. Upon
request, the Commission shall also assist the political subdivision in the
sale of such bonds. Notwithstanding any other provision of any general
or special law, such governing body may meet at the office of the Commis-
sion for the purpose of receiving bids and awarding such bonds.

§ 15-666.17. Any unit having matured bonds or matured interest
coupons outstanding for a period of more than five years may, with the
approval of the circuit or corporation court of such unit, pay such sums
into the general fund of such unit. Such payments shall be accompanied
by a statement of the debt for the payment of which the funds were held
and shall be preserved for safekeeping until the period during which pay-
ment may be required has expired. Any bondholder may, within such time,
present his claim and be paid from the funds so set aside.

Article 2.
Bond Issues by Cities and Towns.

§ 15-666.18. Any municipality shall have power and is hereby
authorized :

(a) to acquire, construct, reconstruct, improve, extend, enlarge, equip,
maintain, repair and operate any project which is located within or partly
within and partly without the municipality;

(b) to contract debts for any project, to borrow money for any
projeet, and to issue its negotiable bonds to pay all or any part of the cost
of acquiring, constructing, reconstructing, improving, extending, enlarging
and equipping any project or refund any bonds issued therefor, and to
provide for the rights of the holders of such bonds and to secure the same
as hereinafter further provided, and to purchase any of such bonds for
investment, resale or cancellation;

(c) to acquire in the name of the municipality, either by purchase,
gift or the exercise of the power of eminent domain, such lands and rights
and interests therein, including lands under water and riparian rights, and
to acquire such personal property as it may deem necessary in connection
with the acquisition, construction, reconstruction, improvement, extension,
enlargement or operation of any project;

(d) to enter on any lands, water or premises located within or with-
out the municipality for the purpose of making surveys, borings, sound-
ings or examinations in connection with any project; any such entry shall
not be deemed a trespass or an entry under any eminent domain proceed-
ings, but the municipality shall make reimbursement for any actual dam-
ages resulting from such entry;

(e) to receive and accept from any federal agency grants for or in
aid of the construction of any project, and to receive and accept aid or
contributions from any source of either money, property, labor or other
things of value, to be held, used and applied only for the purposes for
which such grants and contributions may be made;

(f) to employ consulting engineers, attorneys, accountants, construc-
tion and financial experts, superintendents, managers, and such other em-
ployees and agents as may be necessary ;

(g) to acquire, hold and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this chapter ;

_(h) 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 chapter;

(i) to do all things necessary or convenient to carry out the powers
expressly given in this chapter and to carry out any project;

(j) to assess, levy and collect unlimited ad valorem taxes on all prop-
erty subject to taxation to pay the bonds and interest thereon issued under
the provisions of this chapter, subject to and in accordance with such
Sereoments with holders of bonds as may be made as hereinafter provided ;
an

(k) to fix and collect rates, rents, fees and other charges for the
services and facilities furnished by or for the use of or in connection with
any revenue producing undertaking, subject to and in accordance with such
agreements with holders of bonds as may be made as hereinafter provided.
To enable the municipality to enforce the collection of rates, rents, fees or
charges for the use of or in connection with any such undertaking against
the person or persons, firm or corporation using the same, the rates, rents,
fees or charges when made for the use of any such undertaking shall be
collectible by distress, levy, garnishment, attachment or as otherwise pro-
vided by law.

Any unpaid rate, rent, fee or charge shall become a lien superior to
the interest of any owner, lessee or tenant, and next in succession to taxes
on the real property on or for which the use of any such undertaking was
made and for which the rate, rent, fee or charge was imposed; provided,
however, such lien shall not bind or affect a subsequent bona fide pur-
chaser of such real estate for valuable consideration without actual notice
of such lien, except and until from the time at which the amount of such
charge is entered in the judgment records kept in the office where deeds
may be recorded in the political subdivision wherein said real estate or a
part thereof is located. It shall be the duty of the clerk in whose office deeds
may be recorded to keep and preserve and hold available for public inspec-
tion such judgment records and to cause entries to be made and indexed
therein from time to time upon certification by the city or town for which
he shall be entitled to a fee of fifty cents per entry to be paid by the city
or town and added tothe amount of the lien. __

Such lien on any real estate may be discharged by the payment to the
said city or town of the total amount of such lien and interest at the rate
of six per centum (6%) per annum from the date such rate, rent, fee or
charge was due and payable which may accrue to the date of such payment,
and the entry fee of fifty cents, and it shall be the duty of the city or town
to deliver a certificate thereof to the person paying the same, and upon
presentation thereof and the payment of the further fee of twenty-five
cents by such person the clerk having the record of such lien shall mark
the entry of such lien satisfied.

Jurisdiction to enforce any such lien shall be in equity, and the court
may decree the real estate subject to the lien, if any, or any part thereof,
to be sold and the proceeds applied to the payment of such lien and the
interest which may accrue to the date of such payment.

Nothing contained herein shall be construed to prejudice the right of
the city or town to recover the amount of such lien, or of the rate, rent, fee
or charge, and the interest which may accrue, by action at law or otherwise.

§ 15-666.19. No city or town shall issue any bonds or other interest
bearing obligations for any purpose, or in any manner, to an amount which,
including existing indebtedness, shall, at any time, exceed eighteen per
centum of the assessed valuation of the real estate in the city or town
subject to taxation, as shown by the last preceding assessment for taxes;
provided, however, that nothing above contained in this section shall apply
to those cities and towns whose charters existing at the time of the adoption
of the present Constitution authorize a larger percentage of indebtedness
than is authorized by this section.

§ 15-666.20. In determining the limitation of the power of a city
or town to incur indebtedness there shall not be included the following
classes of indebtedness: . .

_ (a) Certificates of indebtedness, notes or other obligations issued in
anticipation of the collection of the revenues of such city or town for the
then current year; provided that such certificates, notes or other obligations
mature within one year from the date of their issue, and be not past due,
and do not exceed the revenue for such year. .

_(b) Bonds authorized by an ordinance enacted in accordance with
section one hundred and twenty-three of the Constitution, and approved
by the affirmative vote of the majority of the qualified voters of the city
or town voting upon the question of their issuance, at the general election
next succeeding the enactment of the ordinance, or at a special election
held for that purpose, for a supply of water or other specific undertaking
from which the city or town may derive a revenue; but from and after a
period to be determined by the governing body and set forth in such ordi-
nance, not exceeding five years from the date of such election, whenever
and for so long as such undertaking fails to produce sufficient revenue to
pay for cost of operation and administration (including interest on bonds
issued therefor) and the cost of insurance against loss by injury to per-
sons or property, and an annual amount to be covered into a sinking fund
sufficient to pay, at or before maturity, all bonds issued on account of such
undertaking, all such bonds outstanding shall be included in determining
the limitation of the power to incur indebtedness, unless the principal and
interest thereof be made payable exclusively from the receipts of the
undertaking.

§ 15-666.21. The governing body of any municipality may, in accord-
ance with the provisions of section one hundred and twenty-seven (b) of
the Constitution, issue bonds for acquiring, constructing, reconstructing,
improving, extending or enlarging any revenue producing undertaking.
The powers conferred by this section are hereby granted to all cities and
towns in this Commonwealth, notwithstanding any special limitations other
than debt limitations contained in special charters, or amendments thereto,
granted to such cities or towns prior to June seventeenth, nineteen hundred
and thirty, and such powers shall be deemed supplemental to, cumulative
of and in addition to all other powers heretofore granted by general law
or special act.

§ 15-666.22. Whenever it is proposed by any town or by any
city to borrow money and issue bonds under the provisions of clause
(b) of section one hundred twenty-seven of the Constitution for any
revenue producing undertaking, the governing body shall adopt an
ordinance, reciting the expediency of borrowing money by the munici-
pality and the issuance of bonds therefor, the amount of such issue,
the length of time for which they are to run, the maximum rate of interest
to be paid thereon, and the purpose for which the money realized there-
from is to be used, and if for the purpose of borrowing money and issuing
bonds under the provisions of said clause (b), and not to be included
within the otherwise authorized indebtedness of such municipality, the
ordinance shall state that fact, as well as the specific undertaking for which
the money is proposed to be borrowed and the bonds are to be issued. Any
such ordinance must be passed upon the recorded affirmative vote of a
majority of all the members elected to the governing body, or to each
branch thereof when there are two branches; and if such ordinance be
vetoed by the mayor, it may be adopted notwithstanding such veto in the
manner prescribed by section one hundred and twenty-three of the Consti-
tution. After adoption of such ordinance a certified copy thereof shall be
forthwith presented to the corporation or circuit court having jurisdiction
over such city or town, or to the judge thereof in vacation. .

§ 15-666.23. The court or judge, on the receipt of the certified copy
of such ordinance, shall, by an order entered in term time or vacation,
direct the proper election officers of such municipality to take such steps
and prepare such means as may be necessary to submit to the qualified
voters of such municipality, either at the next succeeding general election
or at a special election, the question of whether such bonds shall be issued
and the court or judge shall make such order as may be proper to give due
publicity to such election. If a majority of the qualified voters who vote
thereon at such special election shall approve contracting the debt, bor-
rowing the money and issuing the bonds, the governing body of such city
or town shall thereupon authorize and issue such bonds in accordance with
the provisions of this chapter applicable to the authorization and issuance
of bonds by cities and towns.

§ 15-666.24. In the cities of Danville and Roanoke no money shall
be borrowed and no bonds issued and no indebtedness incurred under this
chapter except in accordance with the terms of their respective charters.

§ 15-666.25. When any such town is situated partly in two or more
counties, the certified copy of the ordinance provided for in § 15-666.22
may be presented to the circuit court of any of such counties, or to the
judge thereof in vacation, and such court or judge shall order an election
to be held in such town, in accordance with the provisions of § 15-666.23,
by the proper election officers of the town, appointed as provided by § 24-56.
The electoral board of the county in which the greater part of the area of
such town is situated shall have the ballots for use at such election printed
in accordance with the provisions of § 15-666.26. The returns of such elec-
tion shall be delivered to the clerk of the court which, or the judge of which,
entered the order for the holding of the election and shall be canvassed and
certified in accordance with the provisions of § 15-666.26.

§ 15-666.26. The electoral board of any city when an election has
been ordered in such city, and the electoral board of any county when an
election has been ordered in a town in such county, shall, prior to date of
such election, have printed at the expense of the city or town proper ballots
to be voted at such election, on which shall be set out the date of the elec-
tion, and the question to be submitted, including the amount of the proposed
bond issue, and on which there shall be printed, on separate lines, the
words, “for bond issue”, and “against bond issue”. On each such line and
immediately to the left of “for” and “against”, there shall be printed a
square not less than one-quarter nor more than one-half an inch in size,
printed thus:

QO) For bond issue

[] Against bond issue

Each person voting at such election shall mark his ballot in the manner
prescribed by § 24-245 for the marking of ballots.

Such ballots shall be delivered to the judges of election, within five
days preceding the day of election, in the same manner as ballots are
delivered to the judges of election in regular elections, for use at such
election. Such election shall be conducted in the manner prescribed by law
for the conduct of regular elections by the regular election officers of such
municipality.

The pollbooks and the certificates of the judges of election shall be
delivered by one of the judges of election from each precinct in the city
or town to the clerk of the court to which election returns are made in
regular elections, and canvassed as returns are canvassed in regular elec-
tions, and the result thereof certified by the clerk of the court to the gov-
erning body of the city or town and to the judge of the court ordering the
election. . .

If it shall appear from the returns that a majority of the qualified
voters voting thereon at such election shall be against such proposed
bond issue, an order shall be entered of record accordingly and no other
election for a similar purpose shall be held within one year after such
election; provided, however, if such election was held on a date Provided
by law for a general election or primary election, another election for a
similar purpose may be held on the day designated by law for the same
general election or primary election the next year. But if a majority of the
qualified voters voting thereon at such election shall be in favor of such
bond issue, the court or judge thereof shall enter an order accordingly,
a copy of which shall be forthwith certified by the clerk of such court to
the governing body of the municipality, which shall be thereupon fully
authorized and empowered to prepare and issue and to sell or negotiate
bonds of such municipality to the amount so authorized. . .

Notwithstanding any of the foregoing provisions of this section, the
governing body of the municipality may provide for the use of voting
machines instead of paper ballots, in which case the ballot used for voting
on each question submitted shall be that portion of the cardboard or
paper or other material within the ballot frames of the voting machines
which shall contain a statement of the question submitted, and such voting
machines shall provide facilities for the qualified voters to vote for or
against each question submitted.

§ 15-666.27. The governing body of any municipality proposing to
issue bonds for a revenue producing undertaking may covenant in the
ordinance or resolution providing for the issuance of such bonds that the
rates, rents, fees or other charges for the services and facilities furnished
by or for the use of or in connection with such undertaking shall be fixed
and maintained at a level that will produce sufficient revenue to pay the
cost of operation and administration, the cost of insurance against loss
by injury to persons or property and the interest on and the principal of
the bonds as the same respectively become due and payable, and to provide
reserves for such purposes. Such ordinance or resolution, in order to
assure the faithful observance of such covenant, may provide for the
creation of a commission, or the appointment of a receiver, vested with
such powers as to the management of such undertaking, or the fixing of
rates, rents, fees or other charges, or both, as the governing body may
deem proper.

Article 8.
Bond Issues by Counties.

§ 15-666.28. Any county shall have all the powers granted by §
15-666.18 to municipalities except that no county shall have power to con-
tract any bonded debt for any project, or to issue its general obligation
bonds to finance any project, unless the qualified voters of such county shall
approve by a majority vote of the qualified voters voting in an election the
contracting of any such debt, the borrowing of the money and the issuance
of the bonds.

§ 15-666.29. Whenever the governing body of any county shall de
termine that it is advisable to contract a debt and issue general obligation
bonds of the county to finance any project, it shall adopt a resolution
(herein sometimes called the “initial resolution”) setting forth

(a) in brief and general terms the purpose or purposes for which the
bonds are to be issued, and
(b) the maximum amount of such bonds and, if bonds are to be
issued for more than one purpose, the maximum amount for each purpose;
provided, however, that with respect to bonds for school purposes a state-
ment of the maximum amount of each separate purpose is not required.
Such resolution shall request the circuit court, or any judge thereof, to
order an election upon the question of contracting the debt and issuing
the proposed bonds.

Prior to the adoption under the provisions of this section of a resolu-
tion by the governing body of any county requesting the ordering of an
election upon the question of contracting a debt and issuing bonds for
school purposes, the county board of education or school board of such
county shall first request, by resolution, such governing body to take
such action.

§ 15-666.30. Upon the adoption by the governing body of any county
of an initial resolution under the provisions of this article, a copy thereof,
certified by the clerk of such governing body, shall be filed with the judge
of the circuit court of such county who shall thereupon make an order
requiring the judges of election on the day fixed in such order, not less
than ten days nor more than thirty days from the date of such order, to
open a poll and take the sense of the qualified voters of the county on the
question of contracting the debt and issuing bonds for the purpose or
purposes set forth in the initial resolution. Notice of said election in the
form prescribed by the judge of the circuit court shall be published at
least once before the election in a newspaper of general circulation in the
county, at least ten days before the election.

§ 15-666.31. The regular election officers of the county at the time
designated in such order authorizing such vote shall open the polls at the
various voting places in the county and shall conduct such election in
such manner as is provided by law for other elections. At such election
each qualified voter shall cast his vote, either by paper ballot or by
use of a voting machine as the governing body may provide, for the
bond issue or against the bond issue for each such purpose or purposes.
The votes shall be counted, returns made and canvassed as in other
special elections and the results certified by the commissioners of elec-
tion to the circuit court of the county or a judge thereof in vacation.
If it shall appear by the report of the commissioners of election that a
majority of the qualified voters of the county voting on the question ap-
prove contracting the debt and issuing the bonds for such purpose or
purposes, the circuit court or a judge thereof in vacation shall forthwith
enter an order authorizing the governing body of the county to proceed
to carry out the wishes of the voters. The governing body of any county,
upon such proceedings being had and not otherwise, shall thereupon have,
with reference to contracting the debt and issuing the bonds for such
project so approved, all the powers granted by this chapter to the govern-
ing bodies of cities and towns to contract debts for any project, to borrow
money for any project, and to issue negotiable bonds to pay all or any
part of the cost of acquiring, constructing, reconstructing, improving,
extending, enlarging and equipping any project.

§ 15-666.32. In the event the question of contracting a debt and
issuing bonds for the purpose or purposes set forth in the initial resolution
shall be approved at the election called and held for such purpose, the
governing body of the county, subsequent to the recording of the results
of such election, shall, by resolution, at one time or from time to time,
authorize the issuance of bonds, and a copy of each such resolution, certified
bv the clerk of the governing body of the county, shall be filed with the
clerk of the circuit court of such county. With respect to bonds for school
purposes, the governing body of the county shall take this action only
after the county board of education, if any, or school board has, by resolu-
tion, requested the governing body of the county to authorize the issuance
of such bonds. .

§ 15-666.82:1. The governing body of any county, acting for and
on behalf of any school district in such county, may provide for the issuance
of general obligation bonds of such district for school purposes. The bonds
shall not be issued unless the qualified voters of such district shall approve
by a majority vote of the qualified voters voting in an election the con-
tracting of the debt, the borrowing of the money and the issuance of the
bonds. The issuance of such bonds shall be governed by the provisions of
this chapter in so far as the same may be applicable.

Article 4.
Refunding Bonds.

§ 15-666.33. The governing body of any unit is hereby authorized
to provide by resolution for the issuance of bonds of such unit for the
purpose of refunding any or all bonds, coupons or other obligations of such
unit now or hereafter outstanding, other than obligations issued in antici-
pation of the collection of the revenue of such unit for the then current
year, whether such unit created such indebtedness or assumed or became
liable therefor and whether or not the indebtedness to be refunded has
matured.

Each such resolution shall describe the indebtedness to be refunded in
sufficient detail to preserve the identity of such indebtedness, and the
indebtedness so refunded shall be merged into the refunding bonds with
like force and effect as to obligation as if such indebtedness should remain
unrefunded.

This article shall without reference to any other sections of the Code
or acts of the General Assembly be full authority for the issuance, sale or
exchange of bonds authorized hereunder, and no order, resolution or
proceeding in respect of the issuance of such bonds shall be necessary
except as required by this article, nor shall the approval of the authoriza-
tion, sale or exchange of bonds hereunder be required by any official, court,
board or body, except as expressly required herein. No publication of any
notice, order, resolution or proceeding relating to the issuance of such
refunding bonds not herein required shall be necessary nor shall the au-
thorization or issuance of such bonds be subject to referendum.

§ 15-666.34. Any such refunding bonds may be exchanged for not
less than an equal amount of indebtedness to be retired thereby, including
indebtedness not matured if the unmatured indebtedness be then redeem-
able or if the holders thereof be willing to surrender the same for retire-
ment. Unless so exchanged such bonds may be sold at not less than par,
and the proceeds thereof shall be applied to the payment of such indebted-
ness due or redeemable or which may be so surrendered. No funding or
refunding bonds shall be delivered, unless delivered in exchange for evi-
dence of indebtedness to be funded or refunded thereby, except in the
amount necessary to secure moneys for (a) the payment of matured or
redeemable indebtedness, including any redemption premium. or (b) the
payment of unmatured indebtedness the evidences of which shall then be
on denosit with a bank or trust company in Virginia or in the City of
New York for surrender to the unit upon receipt therefor of a sum not
exceeding the amount of such indebtedness.

The holders of such refunding bonds, whether such bonds shall have
been delivered in exchange for the indebtedness refunded thereby or shall
have been sold and the proceeds thereof applied to the retirement of such
indebtedness, shall be subrogated to all the rights and securities of the
holders of such indebtedness.

No such refunding bonds shall be issued to refund bonds or other
obligations prior to their maturity unless such refunding bonds bear
interest at a rate or an average rate which is lower than the rate or the
average rate borne by the bonds or obligations to be refunded and unless
the issuance of such refunding bonds shall have been approved by the State
Commission on Local Debt.

§ 15-666.35. No-such refunding bonds shall be issued in an amount
exceeding the principal of and the interest and any redemption premium
on the bonds or other obligations to be refunded less the amount then in
the sinking fund and other funds which are available for the payment of
such principal, interest and redemption premium.

§ 15-666.36. The issuance of such refunding bonds for the retire-

ment of bonds or obligations which are now or may hereafter be entitled
to participate in funds donated by the Commonwealth, or funds receivable
from any source other than local taxes levied for such purposes, shall not
be construed to deprive such bonds of the right to continue to participate
in the distribution of such funds and such refunding bonds after their
issuance shall enjoy all such rights as would have been enjoyed by the
bonds or obligations refunded.
_ § 15-666.37. The governing body may pay all expenses reasonably
incurred in connection with the authorization and issuance of the re-
funding bonds and may appoint or retain an agent for the purpose of
assisting it in the refunding transaction and assisting it in obtaining the
surrender of its outstanding bonds and may pay such fee to such agent
as it may consider proper.

§ 15-666.38. Provision may be made in the proceedings authorizing
the refunding bonds pursuant to which the refunding bonds may be pur-
chased in the open market, pursuant to tenders from time to time when
there is available in the sinking fund for the payment of such bonds a
surplus in an amount or amounts to be fixed in such proceedings.

§ 15-666.39. The governing body of any county, acting for and in
behalf of any road district, magisterial district, sanitary district or school
district in such county, may provide for the issuance of refunding bonds
of such district for the purpose of refunding any bonds or other obligations
of such district. The issuance of such refunding bonds shall be governed
by the provisions of this chapter in so far as the same may be applicable.

Article 5.
Provisions Applicable to all Bonds.

§ 15-666.40. The governing body of any unit, subject to the approval
of a majority of the qualified voters of the unit voting on the question of
contracting the debt and issuing the bonds at an election called and held
as provided in this chapter in cases where such approval is required by
the Constitution or by this chapter, is hereby authorized to provide by
resolution for the issuance, at one time or from time to time, of bonds of
the unit for the purposes hereinabove set forth and subject to the provi-
sions of this chapter.

Any such resolution may contain provisions which shall be a part of
the contract with the holders of the bonds as to:

(a) the exclusive pledge of the revenues or receipts of the project for
the payment of the principal of and the interest on such bonds, and the
pledging or not pledging of the full faith and credit of the unit;

(b) the payment of the principal of and the interest on such bonds
from ad valorem taxes to be levied without limitation as to rate or amount
on all property subject to taxation and the pledging of the full faith and
credit of the unit to secure the payment thereof ;

(c) the securing of the payment of the principal of and the interest
on such bonds by a trust agreement by and between the unit and a cor-
porate trustee, which may be any trust company or bank having the
powers of a trust company within or without the Commonwealth ; any such
trust agreement shall set forth the rights and remedies of the bondholders
and of the trustee and may restrict the individual right of action by bond-
holders; any such trust agreement or resolution may contain such other
provisions as the governing body of the unit may. deem reasonable and
proper for the security of the bondholders; ;

the payment of the principal of and the interest on such bonds
from any one or more of the foregoing sources of funds or any combina-
tion thereof and the pledging of any. one or more of the foregoing sources
of funds or any combination thereof to secure the payment of the bonds
and interest thereon;

(e) the rates, rents, fees, charges, taxes and other revenues or re-
ceipts of the project and the amounts to be raised in each year thereby and
the use and disposition of such rates, rents, fees, charges, taxes and other
revenues and receipts of the project; .

(f) the setting aside of reserves or sinking funds and the regulation
and disposition thereof ;

(g) limitations on the right of the unit to restrict and regulate the
use of the project;

(h) limitations on the purpose to which the proceeds of sale of any
issue of bonds then or thereafter to be issued may be applied;

(i) limitations on issuance of additional revenue bonds;

(j) the procedure, if any, by which the terms of any contract with
bondholders 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;

(k) conferring upon the bondholders or the trustee under any such
trust agreement remedies for enforcing the rights of the bondholders and
requiring the governing body to carry out any agreement with the bond-
holders; and

(1) any other matter required by any federal agency as a condition
precedent to the obtaining of a direct grant or grants of moneys for or in
aid of any project or to defray or partially to defray the cost of the labor
and materials employed upon any project, or to obtain a loan or loans of
moneys for or in aid of any project from any federal agency.

Any such resolution may be finally adopted at the meeting at which
it is introduced, which may be a regular or special meeting, by a majority
of the members of the governing body, and need not be published or posted.

A certified copy of each such resolution shall be filed in the case of a
city or town with the corporation or circuit court having jurisdiction
over such city or town and in the case of a county with the circuit court of
such county. In cases where the issuance of the bonds of a unit has not
been approved at an election, a notice setting forth (1) in brief and gen-
eral terms the purpose or purposes for which the bonds are to be issued,
and (2) the amount of such bonds and, if bonds are to be issued for more
than one purpose, the amount for each purpose, except that with respect
to bonds for school purposes the amount of each separate purpose is not
required, shall be published once in a newspaper having a general circu-
lation in such unit within ten days after such filing.

§ 15-666.41. The bonds of each issue shall be dated, shall bear in-
terest at such rate or rates not exceeding six per centum (6%) per annum,
shall mature at such time or times not exceeding thirty years from their
date or dates, as may be determined by the governing body, and may be
made redeemable before maturity, at the option of the unit, at such price
or prices and under such terms and conditions as may be fixed by the
governing body prior to the issuance of the bonds. The governing body
shall fix the denomination or denominations of the bonds and the place or
places of payment of principal and interest, in conformity with their char-
ter in the case of municipalties and general law in the case of counties.

§ 15-666.42. The governing body shall determine the form and the
manner of execution of the bonds, including any interest coupons to be
attached thereto. Any bonds issued under the provisions of this chapter,
and any bonds heretofore or hereafter authorized to be issued by any unit
under the provisions of any general or special law heretofore or hereafter
enacted, and any interest coupons attached thereto may, if so authorized
by the governing body of such unit, bear or be executed with the facsimile
signature of any official authorized to sign or to execute such bonds or
coupons; provided, however, that each such bond shall be manually signed
by at least one official of such unit. In ease any such law shall provide for
the sealing of such bonds with the official or corporate seal of such unit
or of its governing body or any official thereof, a facsimile of such seal
may be imprinted on the bonds if so authorized by the governing body of
such unit, and it shall not be necessary in such case to impress such seal
physically upon such bonds.

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 delivery of such bonds, such signature or such facsimile shall neverthe-
less be valid and sufficient for all purposes the same as if he had remained
in office until such delivery, and any bond may bear the facsimile signature
of, or may be signed by, such persons as at the actual time of the execution
of such bond shall be the proper officers to sign such bond although at the
date of such bond such persons may not have been such officers.

§ 15-666.48. The bonds may be issued in coupon or in registered
form or both, as the governing body 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, for the reconversion into coupon
bonds of any bonds registered as to both principal and interest, and for
the interchange of coupon and registered bonds.

§ 15-666.44. Notwithstanding any of the foregoing provisions of this
chapter or any recitals in any bonds issued under the provisions of this
chapter, all such bonds shall be deemed to be negotiable instruments under
the laws of this Commonwealth.

§ 15-666.45. Prior to the preparation of definitive bonds, the govern-
ing body of any unit may, subject to the same provisions of this chapter
as are applicable to the issuance of definitive bonds, issue interim receipts
or temporary bonds, with or without coupons, exchangeable for definitive
bonds when such bonds have been executed and are available for delivery.

§15-666.46. The governing body of any unit may sell any bonds
authorized under the provisions of this chapter in such manner, either at
pubic or private sale, and for such price as it may determine to be for the

est interests of the unit, 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 six per centum (6%) per annum, computed with relation to
the absolute maturity of the bonds in accordance with standard tables of
bond values excluding, however, from such computation, the amount of any
premium to be paid on the redemption of any bonds prior to maturity.

§ 15-666.47. All proceeds received from the sale of the bonds of any
unit issued under the provisions of this chapter shall be paid to the treas-
urer or chief financial officer of the unit, who shall promptly deposit such
funds in bank to the credit of the unit as prescribed by general law or the
provisions of the charter applicable to such unit. He shall account for
such money through a fund, separate from all other funds, in the system
of accounting of the unit.

§ 15-666.48. Pending the application of the proceeds of any bonds
authorized under the provisions of this chapter to the purpose or pur-
poses for which such bonds have been authorized, all or any part of such
proceeds may be invested, upon resolution of the governing body of the
unit authorizing such bonds, in securities that are legal investments under
the laws of the Commonwealth for public sinking funds, which shall ma-
ture, or which shall be subject to redemption by the holder thereof at the
option of such holder, not later than twenty-four months after the date
of such investment. Any security so purchased as investment of the pro-
ceeds of such bonds shall be deemed at all times to be a part of such
proceeds, and the interest accruing thereon and any profit realized from
such investment shall be credited to such proceeds. Any security so pur-
chased shall be held by the treasurer or chief financial officer of the unit
and shall be sold by him upon resolution of the governing body of the unit
directing such sale, at the best price obtainable, or presented for redemp-
tion, whenever it shall be necessary, as determined by such resolution, so to
do in order to provide moneys to meet the purposes for which the bonds
of the unit shall have been authorized.

§ 15-666.49. Bonds issued under this chapter are hereby made secur-
ities in which all public officers and bodies of this Commonwealth and all
counties, cities and towns and municipal subdivisions, all insurance com-
panies and associations, all savings banks and savings institutions, includ-
ing savings and loan associations, trust companies, beneficial and benevo-
lent associations, administrators, guardians, executors, trustees and other
fiduciaries in the Commonwealth may properly and legally invest funds
under their control.

§ 15-666.50. Subject to the approval of the State Commission on
Local Debt, the governing body of any unit may, in case any bond thereof
shall become mutilated or be destroyed or lost, cause a new bond of like
date, number and tenor to be executed and delivered in exchange and
substitution for and upon the cancellation of such mutilated bond and its
interest coupons, if any, or in lieu of and in substitution for such bond
and its coupons, if any, destroyed or lost, upon the holder’s paying the
reasonable expense and charges in connection therewith and in the case of
a bond destroyed or lost, his filing with the treasurer having custody of
the funds from which the same is to be paid, evidence satisfactory
to such treasurer that such bond and coupons, if any, were destroyed or
lost, and of his ownership thereof and furnishing indemnity satisfactory
to such treasurer.

§ 15-666.51. For the payment of the principal of and the interest
on any general obligation bonds of a unit issued under the provisions of
this chapter, the governing body is hereby authorized and required to levy
and collect annually, at the same time and in the same manner as other
taxes of the unit are assessed, levied and collected, a tax upon all taxable
property within the unit over and above all other taxes authorized or lim-
ited by law sufficient to pay such principal and interest as the same re-
spectively become due and payable; provided, however, that there may be
pledged to the payment of such principal and interest the proceeds of the
rates, rents, fees and other charges for the services and facilities furnished
by or for the use of or in connection with the revenue producing under-
taking financed or refinanced by such bonds or the proceeds of any special
assessments or both, and in the event of such pledge the amount of the an-
nual tax levy herein required may be reduced in any year by the amount
of such proceeds actually received in the preceding year and then re-
maining on deposit to the credit of the special fund for the payment of
such principal and interest.

§ 15-666.52. All proceeds received from the sale of bonds of any unit
issued under the provisions of this chapter and all moneys collected for
the payment of bonds issued under the provisions of this chapter, whether
from the proceeds of taxes levied for such purpose or from revenues or
special assessments pledged for such purpose, shall be deposited in a sol-
vent bank or banks in conformity with their charters in the case of mu
nicipalities and general law in the case of counties, and shall be securea
either by a surety bond or bonds given the governing body for the pro-
tection of the deposit written by some solvent surety or fidelity company
authorized to do business in the Commonwealth, or by the deposit as col-
lateral security of direct obligations of, or obligations the principal of and
the interest on which are unconditionally guaranteed by, the United States
Government, or other marketable securities eligible as security for the
deposit of trust funds under regulations of the Board of Governors of the
Federal Reserve System, having a market value (exclusive of accrued in-
terest) not less than the amount of such deposit. It shall be lawful for
any bank or trust company incorporated under the laws of the Common-
wealth which may act as a depository of such moneys to furnish such
surety bonds or to pledge such securities as may be required by the gov-
erning body. In lieu of retaining such moneys on deposit, the governing
body may invest all or part of such moneys in securities that are legal in-
vestments under the laws of the Commonwealth for public sinking funds,
which shall mature, or which shall be subject to redemption by the holder
thereof at the option of such holder, not later than twenty-four months
after the date of such investment. .

§ 15-666.53. For a period of thirty days after the date of the filing
with the corporation or circuit court having jurisdiction over the city or
town or with the circuit court of the county of a certified copy of the
resolution of the governing body of the unit authorizing the issuance of
bonds and fixing the form and details thereof any person in interest shall
have the right to contest the validity of such bonds or the taxes to be
levied for the payment of the principal of and the interest on such bonds
or the rates, rents, fees and other charges for the services and facilities
furnished by or for the use of or in connection with the project or the
pledge of the revenues or receipts of the project or any provisions which
may be recited in such resolution or in any trust agreement securing the
bonds, or any amendment thereof, or any matter therein contained or
provided for or done or to be done pursuant thereto. If such contest shall
not have been begun within the thirty days’ period, the authority to issue
the bonds, the validity of the taxes necessary to pay the principal of and
the interest on the bonds, and the validity of any other provision contained
in such resolution or any such trust agreement and all proceedings in
connection with the authorization and the issuance of the bonds shall be
conclusively presumed to have been legally taken and no court shall have
authority to inquire into such matters and no such contest shall thereafter
be instituted.

Upon the delivery of any bonds reciting that they are issued pursuant
to this chapter and an election held or resolution adopted hereunder, or
any amendment thereof, such bonds shall be conclusively presumed to be
fully authorized by all the laws of this Commonwealth and to have been
sold, executed and delivered by the unit in conformity herewith and the
validity of such bonds shall not be questioned by either a party plaintiff
or a party defendant or by the unit or any taxpayer thereof or any other
interested party in any court, anything herein or in any other statutes
to the contrary notwithstanding.

Article 6.
Judicial Determination of Validity of Bonds.

_ § 15-666.54. The provisions of this article shall apply to all suits,
actions and proceedings of whatever nature involving the validity of bonds
of any political subdivision, whether the bonds are to be issued following
an election on the question of their issuance or without necessity of such
election. They shall supersede all other acts and statutes on the subject and
be controlling in all such cases, notwithstanding the provisions of any
other law or charter to the contrary. . cas

§ 15-666.55. The governing body of any political subdivision pro-
posing to issue bonds may bring at any time a proceeding in any court
of the county or city having general jurisdiction and in which such
political subdivision is located to establish the validity of such bonds, the
legality of all proceedings theretofore taken in connection with the au-
thorization or issuance of such bonds and the validity of the tax or other
means provided for the payment of such bonds, and the validity of all
pledges of revenues and of all covenants and provisions which constitute
a part of the contract between such political subdivision and the holders
of such bonds. Such proceeding shall be brought by filing a motion for
judgment describing such bonds and the proceedings had relative to the
issuance thereof and alleging that such bonds when issued will be valid
and legal obligations of the issuing political subdivision. In such motion
for judgment the taxpayers, property owners and citizens of the issuing
political subdivisions, including nonresidents owning property or subject
to taxation therein, and all other persons interested in or affected in any
way by the issuance of such bonds shall be made parties defendant.

§ 15-666.56. All such parties shall be served by publishing such
motion for judgment once a week for two consecutive weeks in some
newspaper published in or having general circulation in such political
subdivision. Upon the filing of any such motion for judgment the court
shall enter an order requiring the publication thereof and at the same time
shall fix a time and place for hearing the proceeding, which time and place
shall be published with the motion for judgment. The date fixed for the
hearing shall be at least ten days after the second publication of such
motion for judgment and order.

By the publication of such motion for judgment and order, all tax-
payers, property owners and citizens of such political subdivision, in-
cluding nonresidents owning property or subject to taxation therein, and
all other persons having or claiming any right, title or interest in any
property or funds to be affected in any way by the issuance of such bonds,
or having or claiming to have any right or interest in the subject matter
of such motion for judgment, shall be considered as parties defendant in
such proceedings, and the court shall have jurisdiction of them the same
as if each of them were named individually as a party defendant in such
motion for judgment and personally served with process.

§ 15-666.57. Any person, corporation, or association desiring to con-
test the issuance of any such bonds shall proceed by motion for judgment
brought in the court having jurisdiction as provided in § 15-666.55. Upon
the filing of any such motion for judgment the court shall fix a time and
place for hearing the proceeding and shall forthwith enter an order re-
quiring the publication of the motion for judgment, together with the
time and place of such hearing, once a week for two consecutive weeks in
some newspaper published in or having general circulation in such political
subdivision. The date fixed for the hearing shall be at least ten days after
the second publication of such motion for judgment and order. In addition
to such publication, the plaintiff must secure personal service on at least
one member of the governing body of the issuing political subdivision.

§ 15-666.58. Any party defendant may reply to such motion for
judgment within ten days after the second publication thereof as required
by § 15-666.56 but not thereafter. Any property owner, taxpayer, citizen
or other person in interest may become a party to said proceedings by
pleading to the motion on or before the time set for hearing as provided
by § 15-666.56 or thereafter by intervention upon leave of court. At the
time and place designated in the order for hearing as provided for in

§ 15-666.56, the judge shall proceed to hear and determine all questions

of law and fact in said cause and may make such orders as to the proceed-

ings and such adjournments as will enable him properly to try and deter-

mine the same and to render a final decree therein with the least possible

peey The proceedings shall take precedence over all other business of
e court.

§ 15-666.59. Upon motion of the plaintiff or the issuing political
subdivision the court in which the first proceeding to invalidate or sustain
the bonds was instituted may enjoin the commencement by any person,
corporation or association of any other action or proceeding involving the
validity of the bonds or any matter recited in the motion for judgment,
and may order a joint hearing before it of all such issues then pending
in any actions or proceedings in any court in the Commonwealth, and may
order all such actions or proceedings consolidated with the validation
proceeding pending before it, and may make such orders as may be neces-
sary or proper to effect consolidation and as may tend to avoid unneces-
sary costs or delays. Such orders shall not be appealable.

- § 15-666.60. From the final judgment of the court an appeal shall
lie to the Supreme Court of Appeals. No such appeal shall be allowed unless
the petition therefor be filed within fifteen days next after the date on
which the judgment of the court is entered and only then if the party
taking the appeal has the record certified to the Supreme Court of Appeals
and his brief filed therein within thirty days next after the date on which
the judgment of the court is entered. If the appeal be timely and otherwise
in conformity herewith and if the Supreme Court of Appeals allows the
appeal the same shall be placed on the privileged docket.

§ 15-666.61. In the event the decree of the court validates the bonds
and no appeal is taken within the time above prescribed, or if appeal is
taken and the decree of the court is affirmed, such decree shall be forever
binding and conclusive as to the validity of the bonds, the validity of the tax
or other means provided for the payment of such bonds and the validity of
all pledges of revenues and of all covenants and provisions contained in
the resolution authorizing or providing for the issuance of such bonds,
and as to all matters adjudicated and as to all objections presented or
which might have been presented in such proceeding, and shall constitute
& permanent injunction against the institution by any person of any action
or proceeding contesting the validity of the bonds or any other matter
adjudicated or which might have been called in question in such proceed-
ings.

§ 15-666.62. No court in which a proceeding to invalidate or sustain
bonds is brought shall invalidate the bonds unless it finds substantial
defects, material errors and omissions in the incidents of such bond issue.
Matters of form shall be disregarded.

Article 7.
Temporary Loans,

§ 15-666.63. Any municipality may borrow money for the purpose of
meeting appropriations made for the then current fiscal year, in anticipa-
tion of the collection of the taxes and revenues of such fiscal year, and
within the amount of such appropriations. Such loans shall mature and
be paid within one year from the date of their issue. Provision shall be
made in the annual budget of each fiscal year for the payment of all un-
paid loans predicated upon the taxes and revenues of the previous fiscal
year. The borrowing of counties shall be in accordance with § 15-250.

§ 15-666.64. In anticipation of the issuance of bonds under the
provisions of this chapter and of the receipt of the proceeds of the sale of
such bonds, any unit may borrow money for the purpose for which such
bonds have been authorized and within the maximum authorized amount
of the bond issue. Such loans shall mature and be paid within two years
from the date of issue of the original loan. The unit may, in its discretion,
retire any such loans by means of current revenues, special assessments,
or other funds, in lieu of retiring them by means of bonds.

§ 15-666.65. Negotiable notes or other obligations shall be issued for
all moneys borrowed under the preceding two sections. Such notes or other
obligations may be renewed from time to time and money may be borrowed
upon notes or other obligations from time to time for the payment of any
indebtedness evidenced thereby, but all such notes or other obligations
shall mature within the time limited by said sections for the payment of
the original loan. The issuance of such notes or other obligations and other
details thereof shall be governed by the provisions of this chapter with
respect to bonds in so far as the same may be applicable.

Article 8.
Miscellaneous.

§ 15-666.66. Whenever it shall be made to appear to the Governor
from any petition filed with him by or on behalf of the holder of any gen-
eral obligation bonds of any unit, verified by the holder, hereinafter refer-
red to as the petitioner, or by his or its duly authorized agent, that such
unit has defaulted for over sixty days in the payment of the principal of
or interest on any of its outstanding general obligation bonds held. by
such petitioner, the Governor shall make a summary investigation into
the facts disclosed in the petition and for that purpose may administer
oaths and take testimony thereunder, issue subpoenas, and compel the at-
tendance of witnesses and the production of books, memoranda, papers and
other documents. articles, instruments and data.

If it be established to the satisfaction of the Governor that the bonds
held by the petitioner are genuine and are the bonds of the unit and that
the unit is and has been for a period of at least sixty days in default in
the payment of such bonds or the interest thereon, the Governor shall
make an order directing the Comptroller to withhold on and after six-
ty days from the issuance of such order all further payment to the unit
of all funds or of any part thereof. except the amount required by section
one hundred and thirty-five of the Constitution to be applied to the
schools of the primary and grammar grades in the unit and the amount
payable to the unit from the collection of the state capitation tax, appro-
priated and payable by the Commonwealth to the unit for any and all
purposes until such default shall be paid. When the Governor finds that a
unit is in default upon its general obligation bonds he shall give notice
thereof in a newspaper of general circulation published in the city of
Richmond and the cost thereof shall be a charge against the funds in the
hands of the Comptroller payable to such unit. The Governor shall, within
sixty days following such publication, notify the Comptroller of all peti-
tions for payment filed with him by the holders of bonds of such unit.
The Governor may also at any time thereafter in writing while such default
continues, direct the payment of all sums so withheld by the Comptroller,
or so much thereof as shall be necessary, to the petitioner so as to cover,
or cover in so far as possible, the default as to such bonds, or interest
thereon, held by the petitioner. Any payment so made by the Comptroller
to the petitioner shall be credited by the petitioner as if made direct by the
unit and shall be charged by the Comptroller against the unit as if paid
to the unit.

The petitioner at the time of such payment, or at the time of each
payment, shall receipt therefor and deliver to the Comptroller all bonds
and interest coupons satisfied by such payment, and the Comptroller shall
thereupon report each payment so made to the governing body of the
unit affected and deliver or send by registered mail to the governing body
all bonds and interest coupons received by the Comptroller under the pro-
visions of this section.

For the purpose of this section bonds of any magisterial district or
school district of any county shall be treated-as bonds of the county in
which such magisterial district or school district is located.

§ 15-666.67. The authorization and issuance of the bonds under this
chapter shall not be dependent on or affected in any way by proceedings
taken, contracts made, acts performed or done in connection with, or in
furtherance of, any project undertaken by the unit authorizing and issuing
the bonds.

§ 15-666.68. In so far as the provisions of this chapter are inconsis-
tent with the provisions of any law, the provisions of this chapter shall be
controlling. The powers conferred by this chapter shall be in addition
and supplemental to the powers conferred by any other law; and bonds,
interim certificates or other obligations may be issued hereunder for any
project notwithstanding that any other law may provide for the issuance
of bonds for like purposes and without regard to the requirements, re-
strictions or other provisions contained in any other law. Bonds may be
issued under this chapter notwithstanding any debt or other limitation
prescribed by any other law, and the mode and method of procedure for
the issuance of bonds under this chapter need not conform to the provi-
sions of any other law.

Bonds may be issued under the provisions of this chapter without
obtaining the consent of any commission, board, bureau or agency of the
Commonwealth, and without any other proceeding or the happening of
any other condition or thing than those proceedings, conditions or things
which are specifically required by this chapter.

8. Article 2, Chapter 9, Title 22, Code of Virginia, 1950, as amended, is
hereby repealed.

4. The governing body of any county, city or town which has heretofore
done or taken any acts or proceedings for the issuance of bonds under the
provisions of Chapter 19, Title 15, Code of Virginia, 1950, as amended, as
it stood prior to the passage of this Act may complete such acts and pro-
ceedings and issue such bonds in the same manner as if this Act had not
been passed or pursuant to the provisions of Chapter 19.1 of this Act.

The county school board of any county which has heretofore done or
taken any acts or proceedings for the issuance of bonds under the provi-
sions of Article 2, Chapter 9, Title 22, Code of Virginia, 1950, as amended,
as it stood prior to the passage of this Act may complete such acts and pro-
ceedings and issue such bonds in the same manner as if this Act had
not been passed.