CHAPTER 227

An Act to create the Rudee Inlet Authority; to provide for the composition,
government, powers, duties and liabilities thereof and other matters
pertaining thereto; and to provide for the issuance of certain bonds
thereby, and the terms and conditions of such issuance. rH 460}

Approved March 9, 1960

Be it enacted by the General Assembly of Virginia:

1. § 1. There is hereby created a political subdivision of the Common-
wealth, with such public and corporate powers as are granted in this act,
to be known as the Rudee Inlet Authority hereinafter called the Authority.

§ 2. The Authority may exercise the powers conferred on it by this
act within the city of Virginia Beach and the county of Princess Anne,
and the area bounded on the east by the Atlantic Ocean; on the north
by United States Highway 58 (Business Route); on the west by State
Highway 615; and on the south by Old Dam Neck Road in the county of
Princess Anne.

In the exercise of the power of eminent domain conferred on it by
this act, the Authority shall conform to the procedure set forth in Title 25
of the Code of Virginia.

_The Authority shall not commence any work to open Rudee Inlet to
navigation or to improve the navigability thereof until thirty days from
the date it shall have notified the Virginia Beach Erosion soe writing
United States Army Engineers and the Federal Erosion Board in writing
of its intention. i d of

§ 8. The Authority shall be governed by a commission compose °
nine commissioners, four of whom shall be appointed by the governing body
of Princess Anne County, four of whom shall be appointed by the council
of the city of Virginia Beach and one of whom shall be elected by the other
eight members. All powers and duties of the Authority shall be exercised
and performed by the commission.

The commissioners shall be appointed or elected for terms of
four years. Appointment to fill vacancies shall be for the unexpired terms.
Each commissioner shall before entering on his duties take and subscribe
the oath prescribed by § 49-1 of the Code of Virginia.

§ 5. The commissioners shall elect from their membership a chair-
man and vice-chairman, and from their membership or not, as they desire,
a secretary and a treasurer or secretary-treasurer. The commissioners shall
receive no salary but shall be reimbursed for necessary traveling and other
expenses incurred in the performance of their duties. The commission shall
keep detailed minutes of its proceedings, which shall be open to public
inspection at all times. It shall keep suitable records of all its financial
transactions and shall arrange to have the same audited annually. Copies
of each such audit shall be furnished to the governing bodies of Princess
Anne County and Virginia Beach and shall be open to public inspection.

§ 6. The Authority shall have the following powers:

(a) To contract and be contracted with; to sue and to be sued; to
make and from time to time amend and repeal by-laws, rules and regu-
lations not inconsistent with general law to carry out its purposes and
to adopt and use a corporate seal, and to alter the same at pleasure;

(b) To acquire, hold and dispose of personal property necessary for
its purposes;

(c) To acquire by purchase, lease, or condemnation, real property,
or rights, easements or estates therein necessary for its purposes; and to
sell, lease and dispose of the same, or any portion thereof or interest
therein ;

(d) To acquire, lease, construct, improve, extend, maintain and op-
erate, landings, wharves, docks, piers, jetties, yacht basins, marinas, fa-
cilities for yachts, boats and other watercraft and the approaches to and
appurtenances thereof necessary or useful for the operation, navigation
or maintenance of pleasure craft and fishing boats within the territorial
limits of its jurisdiction.

(e) To prescribe and collect charges from pleasure craft and fishing
boats coming into or using any landings, wharves, docks and piers, operated
and maintained by the Authority and from persons using any of its other
facilities, and to lease any and all of such facilities or any concessions
properly incident thereto for the maintenance and operation of any or all
thereof on such terms and conditions as it may deem proper;

(f) To construct for sale or lease, on such terms and conditions as it
may deem proper, facilities and approaches to and appurtenances thereof ;

(g) To fix and charge tolls, fees and any other charges for the use of,
or for services rendered by, any of the facilities it is authorized hereunder
to maintain and operate;

(h) To employ a director and such other agents and employees as
may be necessary, to serve at the pleasure of the commission, and to fix
their compensation and prescribe their duties.

(i) To accept grants from the federal government, the Commonwealth
or either of the political subdivisions within the territory of the Authority;

(j) To do all other acts and things which may be reasonably necessary
and convenient to carry out its purposes and powers.
§ 7. The county of Princess Anne and the city of Virginia Beach are
authorized and empowered to make appropriations and to provide funds
for the operation of the Authority.

§ 8. The Authority shall have the power to issue bonds from time to
time in its discretion, for any of its purposes, including the payment or
retirement of bonds previously issued by it. The Authority may issue such
types of bonds as it may determine, including (without limiting the gen-
erality of the foregoing) bonds payable, both as to principal and interest:
(a) from its revenues generally; (b) exclusively from the income and
revenues of a particular “facility”, which term shall mean a particular
building or structure or particular buildings or structures including all
equipment, appurtenances and accessories necessary or appropriate for the
operation of such facility; or (c) exclusively from the income and revenues
of certain designated facilities whether or not they are financed in whole or
in part from the proceeds of such bonds. Any such bonds may be addi-
tionally secured by a pledge of any grant or contributions from the federal
government, Commonwealth of Virginia, or any political subdivision there-
of, or a pledge of any income or revenues of the Authority, or a mortgage
of any particular facility or facilities or other property of the Authority.

§ 9. Neither the commissioners of the Authority nor any person
executing the bonds shall be liable personally on the bonds by reason of
the issuance thereof. The bonds and other obligations of the Authority
(and such bonds and obligations shall so state on their face) shall not be
a debt of the Commonwealth or any political subdivision thereof and neither
the Commonwealth nor any political subdivision thereof other than the
Authority shall be liable thereon, nor, shall such bonds or obligations be
payable out of any funds or properties other than those of the Authority.
The bonds shall not constitute an indebtedness within the meaning of any
debt limitation or restriction. Bonds of the Authority are declared to be
issued for an essential public and governmental purpose.

§ 10. Bonds of the Authority shall be authorized by resolution
adopted by the commission and may be issued in one or more series and
shall bear such date or dates, mature at such time or times, bear interest
at such rate or rates, not exceeding six per centum per annum, be in such
denomination or denominations, be in such form, either coupon or regis-
tered, carry such conversion or registration privileges, have such rank or
priority, be executed in such manner, be payable in such medium of pay-
ment, at such place or places, and be subject to such terms of redemption
(with or without premium) as such resolution or its trust indenture or
mortgage may provide. The bonds may be sold at public or private sale.

S$ 11. In case any of the commissioners or officers of the Authority
whose signatures appear on any bonds or coupons shall cease to be such
commissioners or officers before the delivery of such bonds, such signatures
shall, nevertheless, be valid and sufficient for all purposes, the same as if
such commissioners or officers had remained in office until such delivery.
Any provision of any law to the contrary notwithstanding, any bonds
issued pursuant to this act shall be fully negotiable within the meaning
and for all the purposes of Chapter 10 of Title 6 of the Code of Virginia.
; 12. In order to secure the payment of such bonds the Authority
shall have power by provision or provisions included in any resoiuticn
authorizing such bends or in any indenture made to secure their payment:

(a) To pledge all or any part of its cross or net rents, fees or rever‘es
to which its right then exists or may thereafter come into existence.

(ob) To mortgage all or any part of its real or personal property. then
OWned or thereafter acquired.

(c) To covenant against pledzing all or any part of its rents. fees and
revenues, Or against mortvaging all or any part of its real or personal
property, to which its right of title then exists or may thereafter come irta

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existence or against permitting or suffering any lien on such revenues or
property; to covenant with respect to limitations on its right to sell, lease
or otherwise dispose of any facility or any part thereof; and to covenant
as to what other, or additional debts or obligations may be incurred by it.
(d) To covenant as to the bonds to be issued and as to the issuance
of such bonds in escrow or otherwise, and as to the use and disposition of
the proceeds thereof; to provide for the replacement of lost, destroyed or
mutilated bonds; to covenant against extending the time for the payment
of its bonds or interest thereon; and to redeem the bonds, and to covenant
for their redemption and to provide the terms and conditions thereof.

(e) To covenant as to the rents and fees to be charged in the operation
of a facility or facilities, the amount to be raised each year or other period
of time by rents, fees and other revenues, and as to the use and disposition
to be made thereof: to create or to authorize the creation of special funds
for moneys held for construction or operating costs, debt service, reserves,
or other purposes, and to covenant as to the use and disposition of the
moneys held in such funds.

(f) To prescribe 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.

(g) To covenant as to the use of any or all of its real or personal

property; and to covenant as to the maintenance of its real and personal
property, the replacement thereof, the insurance to be carried thereon and
the use and disposition of insurance moneys.
h) To covenant as to the rights, liabilities, powers and duties aris-
ing upon the breach by it of any covenant, condition, or obligation; and to
covenant and prescribe as to events of default and terms and conditions
upon which any or all of its bonds or obligations shall become or may be
declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived.

(1) To vest in a trustee or trustees or the holders of bonds or any
proportion of them the right to enforce the payment of the bonds or any
covenant securing or relating to the bonds; to vest in a trustee or trustees
the right, in the event of a default by the Authority, to take possession
and use, operate and manage any facility or part thereof, and to collect
the rents and revenues arising therefrom and to dispose of such moneys
in accordance with the agreement of the Authority with said trustee; to
provide for the powers and duties of a trustee or trustees or the holders
of bonds or any proportion of them who may enforce any covenant or
rights securing or relating to the bonds.

(j) To exercise all or any part or combination of the powers herein
granted; to make covenants other than and in addition to the covenants
herein expressly authorized, of like or different character; to make such
covenants and to do any and all such acts and things as may be necessary
or convenient or desirable in order to secure its bonds, or in the absolute
discretion of said Authority, as will tend to make the bonds more market-
able notwithstanding that such covenants, acts or things may not be
enumerated herein.

§ 13. An obligee of the Authority shall have the right in addition
to all other rights which may be conferred on such obligee, subject only
to any contractual restrictions binding upon such obligee:

(a) By mandamus, suit, action or proceeding at law or in equity to
compel the Authority and the commissioners, officers, agents or employees
thereof to perform each and every term, provision and covenant contained
in any contract of the Authority with or for the benefit of such obligee,
and to require the carrying out of any or all such covenants and agree-
ments of the Authority and the fulfillment of all duties imposed upon the
Authority by this chapter. .

(b) By suit, action or proceedings in equity, to enjoin any acts or
things which may be unlawful, or the violation of any of the rights of
such obligee of the Authority. ;

§ 14. The Authority shall fix and revise from time to time the rents,
fees and other charges to be paid by persons for the use of the various
facilities of the Authority and for any other service furnished or pro-
vided by the Authority. Such rents, fees and charges shall be fixed so as
to provide at least sufficient funds to pay the cost of maintaining, repair-
ing and operating such facilities and the principal and interest of any
bonds issued by the Authority or other debts contracted as the same shall
become due and payable. A reserve may be accumulated and maintained
out of the revenues of such Authority for extraordinary repairs and
expenses and for such other purposes as may be provided in any resolu-
tion authorizing a bond issue or in any trust indenture securing such
bonds. Subject to such provisions and restrictions as may be set forth in
the resolution or in the trust indenture authorizing or securing any of the
bonds or other obligations issued hereunder, the Authority shall have
exclusive control of the revenues derived from any facility or facilities
operated and controlled by it and the right to use such revenues in the
exercise of its powers and duties as set forth in this section. No individual,
firm, association or corporation shall receive any profit or dividend from
the revenues, earnings or other funds or assets of such Authority other
than for debts contracted, for services rendered, for materials and sup-
plies furnished and for other value actually received by the Authority.

§ 15. In addition to the other powers conferred by this act, the
Authority shall have the power to borrow money and to accept contribu-
tions, grants and other financial assistance from the federal government
and agencies or instrumentalities thereof for or in aid of the construction
and equipment of its facilities or the retirement or refunding of its bonds.
To these ends the Authority shall have the power to comply with such
conditions and to execute such mortgages, trust indentures and agree-
ments as may be necessary, convenient or desirable.

§ 16. Nothing contained in this act shall be deemed to authorize the
Authority to occupy or use any land, streets, buildings, structures or other
property of any kind, owned or used by any political subdivision within its
jurisdiction, or any public improvement or facility maintained by such
political subdivision for the use of its inhabitants, without first obtaining
the consent of the governing body thereof.

§ 17. The powers granted and the duties imposed in this act shall
be construed to be independent and severable. If any one or more sections,
subsections, sentences, or parts of any of this act shall be adjudged uncon-
stitutional or invalid, such judgment shall not affect, impair or invalidate
the remaining provisions thereof, but shall be confined in its operation to
the specific provisions so held unconstitutional or invalid.