CHAPTER 552

An Act to amend and reenact §§ 83-255.1, 88-255.2, 38-255.4, $3-255.7,
88-255.8, 33-255.9, 33-255.14 and 88-255.16 of the Code of Virginia,
relating to State turnpike projects.

[H 589]
Approved March 31, 1962

Be it enacted by the General Assembly of Virginia:

1. That §§ 33-255.1, 33-255.2, 33-255.4, 33-255.7, 33-255.8, 33-255.9,
ele and 33-255.16 of the Code of Virginia be amended and reenacted
as follows:

§ 33-255.1. Projects authorized.—In order to provide for the con-
struction of modern express highways or superhighways embodying safety
devices, including center division, ample shoulder widths, longsight dis-
tances, grade separations at intersections with other highways and rail-
roads, and thereby facilitate vehicular traffic, remove many of the present
handicaps and hazards on the congested highways in the Commonwealth,
and promote the agricultural and industrial development of the Common-
wealth, the State Highway Commission of Virginia is hereby authorized
and empowered to construct, maintain, repair and operate turnpike proj-
ects (as hereinafter defined), and to issue revenue bonds of the Common-
wealth, payable solely from revenues, and any other funds made available
to the Commission for such purpose, to finance such projects.

§ 88-255.2. Credit of the Commonwealth not pledged.—Revenue
bonds issued under the provisions of this article shall not be deemed to
constitute a debt of the Commonwealth or of any political subdivision
thereof or a pledge of the faith and credit of the Commonwealth or of
any such political subdivision, but all such bonds shall be payable solely
from * tolls and revenues and any other funds made available to the Com-
mission for such purpose. All such revenue bonds shall contain on the face
thereof a statement to the effect that the Commonwealth shall not be
obligated to pay the same or the interest thereon except from the special
fund provided therefor from tolls and revenues of the project for which
they are issued and any other funds made available to the Commission
for such purpose, and that neither the faith and credit nor the taxing
power of the Commonwealth is pledged to the payment of the principal of
or interest on such bonds.

Except as otherwise provided in this article, all expenses incurred in
carrying out the provisions of this article shall be payable solely from
funds provided under the authority of this article and no liability or obli-
gation shall be incurred by the Commission hereunder beyond the extent
to wich money shall have been provided under the provisions of this
article.

§ 33-255.4. General grant of powers.—The Commission is hereby
authorized and empowered:

(a) To construct, maintain, repair and operate turnpike projects at
such locations within the Commonwealth as may be determined by the
Commission and approved by the Governor; provided, however, the Com-
mission shall have no power to fix, charge or collect tolls for transit over
any existing free public highway;

(a-1) To designate any project constructed under the provisions of
this article as a portion of one of the systems of State highways and to
assign an appropriate number therefor;

(b) To issue turnpike revenue bonds of the Commonwealth payable
solely from the tolls and revenues pledged for their payment, including
any other funds made available to the Commission for the purpose of pay-
ing the cost of any turnpike project, all as provided in this article;

(c) To fix and revise from time to time and charge and collect tolls
for transit over each turnpike project constructed by it;

(d) To establish rules and regulations for the use of any such turn-
pike project;

(e) To acquire, hold and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this article;

(f) To designate the locations, and establish, limit and control such
points of ingress to and egress from each turnpike project as may be
necessary or desirable in the judgment of the Commission to insure the
proper operation and maintenance of such project, and to prohibit entrance
to such project from any point or points not so designated;

(zg) 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 article;

(h) To employ, in its own discretion and without further approval,
consulting engineers, attorneys, accountants, construction and financial
experts, superintendents, managers, and such other employees and agents
as may be necessary in its judgment, and to fix their compensation;

(1) To receive and accept from any federal agency grants for or in
aid of the construction of any turnpike 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; and

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

§ 33-255.7. Turnpike revenue bonds.—The Commission is. hereby
authorized to provide by resolution, at one time or from time to time, for
the issuance of turnpike revenue bonds of the Commonwealth for the pur-
pose of paying all or any part of the cost of any turnpike project. The
principal of and the interest on such bonds shall be payable solely from the
funds herein provided for such payment and any other funds made avail-
able to the Commission for such purpose. The bonds of each issue shall
be dated, shall bear interest at such rate or rates not exceeding six per
centum per annum, shall mature at such time or times not exceeding forty
years from their date or dates, as may be determined by the Commission,
and may be made redeemable before maturity, at the option of the Com-
mission, at such price or prices and under such terms and conditions as
may be fixed by the Commission prior to the issuance of bonds. The Com-
mission shall determine the form of the bonds, including any interest
coupons to be attached thereto, and shall fix the denomination or denomi-
nations of the bonds and the place or places of payment of principal and
interest, which may be at any bank or trust company within or without the
Commonwealth. The bonds shall be signed by the State Highway Commis-
sioner or shall bear his facsimile signature, and the official seal of the
Commission shall be impressed thereon and attested by the secretary of
the Commission, and any coupons attached thereto shall bear the facsimile
signature of the chairman of the Commission. 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 nevertheless be valid and sufficient
for all purposes the same as if he had remained in office until such delivery.
All bonds issued under the provisions of this article shall have and are
hereby declared to have all the qualities and incidents of negotiable instru-
ments under the negotiable instruments law of the Commonwealth. The
bonds may be issued in coupon or in registered form, or both, as the Com-
mission may determine, and provision may be made for the registration of
any coupon bonds as to principal alone and also as to both principal and
interest, and for the reconversion into coupon bonds of any bonds regis-
tered as to both principal and interest. The Commission may sell such
bonds in such manner and for such price as it may determine will best
effect the purposes of this article.

The proceeds of the bonds of each issue shall be used solely for the
payment of the cost of the turnpike project for which such bonds shall have

een issued, and shall be disbursed in such manner and under such re-
strictions, if any, as the Commission may provide in the resolution author-
izing the issuance of such bonds or in the trust agreement hereinafter
mentioned securing the same. If the proceeds of the bonds of any issue,
by error of estimates or otherwise, shall be less than such cost, 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 such bonds or in the trust agreement securing the same, 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. If the proceeds of
the bonds of any issue shall exceed such cost, the surplus shall be de-
posited to the credit of the sinking fund for such bonds.

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

§ 33-255.8. Trust agreement.—In the discretion of the Commission
any bonds issued under the provisions of this article may be secured by a
trust agreement by and between the Commission and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the Commonwealth. Such trust agreement or
the resolution providing for the issuance of such bonds may pledge or
assign the tolls and other revenues to be received including any other funds
made available to the Commission for such purpose, but shall not convey
or mortgage any turnpike project or any part thereof. Such trust agree-
ment or resolution providing for the issuance of such bonds 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 Commission in relation
to the acquisition of property and the construction, improvement, mainte-
nance, repair, operation and insurance of the turnpike project in connec-
tion with which such bonds shall have been authorized, and the rates of
toll to be charged, and the custody, safeguarding and application of all
moneys. It shall be lawful for any bank or trust company incorporated
under the laws of the Commonwealth which may act as depository of the
proceeds of bonds or of revenues to furnish them indemnifying bonds or
to pledge such securities as may be required by the Commission. Such trust
agreement or resolution may contain a covenant that, at all times while
any bonds issued hereunder for the project shall be outstanding, the Com-
mission will pay all costs of maintenance, repair and operation of such
project from funds available to it for the maintenance of State highways.
Any such trust agreement may set forth the rights and remedies of the
bondholders and of the trustee, and may restrict the individual right of
action by bondholders. In addition to the foregoing, any such trust agree-
ment or resolution may contain such other provisions as the Commission
may deem reasonable and proper for the security of the bondholders. All
expenses incurred in carrying out the provisions of such trust agreement
or resolution may be treated as a part of the cost of the operation of the
turnpike project.

§ 33-255.9. Revenues.—The Commission is hereby authorized to fix,
revise, charge and collect tolls for the use of each turnpike project and
the different parts or sections thereof, and to contract with any person,
partnership, association, or corporation desiring the use of any part
thereof, including the right of way adjoining the paved portion, for
placing thereon telephone, telegraph, electric light or power lines, gas
stations, garages, stores, hotels and restaurants, or for any other purpose
except tracks for railroad or railway use, and to fix the terms, conditions,
rents and rates of charges for such use, provided, that a sufficient number
of the aforementioned facilities shall be authorized to be established in
each service area along any such turnpike project to permit reasonable
competition by private business in the public interest. Such tolls shall be
fixed and adjusted in respect of the aggregate of tolls from the turnpike
project in connection with which the bonds of any issue shall have been
issued as to provide a fund sufficient with other revenues, if any, to pay
(a) the cost of maintaining, repairing and operating such turnpike project
and (b) the principal of and interest on such bonds as the same shall
become due and payable, and to create reserves for such purposes. Such
tolls shall not be subject to supervision or regulation by any other com-
mission, board, bureau or agency of the Commonwealth. The tolls and all
other revenues derived from the turnpike project in connection with which
the bonds of any issue shall have been issued, except such part thereof
as may be necessary to pay such cost of maintenance, repair and operation
and to provide such reserves therefor as may be provided for in the
resolution authorizing the issuance of such bonds or in the trust agreement
securing the same, shall be set aside at such regular intervals as may be
provided in such resolution or such trust agreement in a sinking fund which
is hereby pledged to, and charged with, the payment of the principal of
and the interest on such bonds as the same shall become due, and the
redemption price or the purchase price of bonds retired by call or purchase
as therein provided. Such pledge shall be valid and binding from the
time when the pledge is made; the tolls or other revenues or other moneys
so pledged and thereafter received by the Commission shall immediately
be subject to the lien of such pledge without any physical delivery thereof
or further act, and the lien of any such pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract or other-
wise against the Commission, irrespective of whether such parties have
notice thereof. Neither the resolution nor any trust agreement by which
a pledge is created need be filed or recorded except in the records of the
Commission. The use and disposition of moneys to the credit of such sink-
ing fund shall be subject to the provisions of the resolution authorizing
the issuance of such bonds or of such trust agreement. Except as may
otherwise be provided in such resolution or such trust agreement, such
sinking fund shall be a fund for all such bonds without distinction or
priority of one over another.

Notwithstanding the provisions of the foregoing paragraph of this
section, the Commission may provide that no tolls shall be charged on
any project during any period for which there are available to the Com-
mission from sources other than tolls amounts sufficient to meet the
maintenance, repair, operation, sinking fund and reserve requirements of
the resolution authorizing the issuance of bonds for such project or of the
trust agreement securing such bonds, and may also provide that the tolls
on any such project may be reduced wnon compliance with the conditions,
restrictions and limitations contained in such resolution or trust agree-
ment. During any such period the Commission shall collect any rates and
charges other than tolls, and such rates and charges shall remain subject
to the provisions of such resolution or trust agreement applicable thereto.

Any funds made available to the Commission to meet the sinking fund
requirements of the resolution authorizing the issuance of bonds for any
project or of the trust agreement securing such bonds shall be paid by the
Commission into the sinking fund for such bonds from time to time as
shall be necessary to meet such requirements.

§ 33-255.14. Miscellaneous.—Each turnpike project when constructed
and opened to traffic shall be maintained and kept in good condition and
repair by the Commission. Each such project shall also be policed and
operated by such force of police, tolltakers and other operating employees
as the Commission may in its discretion employ.

All private property damaged or destroyed in carrying out the powers
granted by this article shall be restored or repaired and placed in its
original condition as nearly as practicable or adequate compensation made
therefor out of funds provided under the authority of this article.

All counties, cities, towns and other political subdivisions and all
public agencies and commissions of the Commonwealth, notwithstanding
any contrary provision of law, are hereby authorized and empowered to
lease, lend, grant or convey to the Commission at its request upon such
terms and conditions as the proper authorities of such counties, cities,
towns, political subdivisions, agencies or commissions of the Common-
wealth may deem reasonable and fair and without the necessity of any
advertisement, order of court or other action or formality, other than the
regular and formal action of the authorities concerned, any real property
which may be necessary or convenient to the effectuation of the author-
ized purposes of the Commission, including public roads and other real
property already devoted to public use.

The governing body of any county or city may levy road taxes, or
appropriate funds from general revenues, to supplement funds available
to the State Highway Commission for the purpose of maintaining and
operating any project constructed under the provisions of this article, or
for meeting the sinking fund requirements of the resolution authorizing
the issuance of bonds for any project or of the trust indenture securing
such bonds.

On or before the thirtieth day of January in each year the Commis-
sion shall make an annual report of its activities for the preceding calen-
dar year to the Governor and to the General Assembly. Each such report
shall set forth a complete operating and financial statement covering its
operation during the year. The Commission shall cause an audit of its
books and accounts to be made at least once in each year by certified public
accountants and the cost thereof may be treated as a part of the cost of
construction or operation of the project.

Any member, agent or employee of the Commission who contracts
with the Commission or is interested, either directly or indirectly, in any
contract with the Commission or in the sale of any property, either real
or personal, to the Commission shall be punished by a fine of not more
than one thousand dollars or by imprisonment for not more than one year,
or both.

The Commission may, in its discretion, use any part of funds avail-
able for the construction of State highways, in any construction district
in which any project is wholly or partly located, to aid in the payment of
the cost of such project and for the payment, purchase or redemption of
revenue bonds issued in connection with any such project. The Commis-
sion may also, in its discretion, use any part of funds available for the
maintenance of State highways, in any construction district in which any
project is wholly or partly located, to provide for the operation, mainte-
nance and repair of any such project and for the payment of interest on
revenue bonds issued in connection with any such project.

§ 33-255.16. Transfer to Commonwealth.—When all bonds issued
under the provisions of this article in connection with any turnpike
project and the interest thereon shall have been paid or a sufficient amount
for the payment of all such bonds and the interest thereon to the maturity
thereof shall have been set aside in trust for the benefit of the bondholders,
such project * shall become part of the State Highway System if not there-
tofore made a part of the State Highway System under the provisions of
§ 33-255.4 of this Article and shall thereafter be maintained by the Com-
mission free of tolls.

Nothing in this article shall be construed so as to place an obligation
upon the General Assembly of Virginia or the State Highway Commission
to use any portion of gasoline or motor vehicle license tax revenues for
the purpose of retiring or amortizing the revenue bonds, or for payment
of interest thereon, issued under the authority of this article.