CHAP. 325.—An ACT to provide for the settlement of the public
debt of Virginia not funded under the provisions of an act en-
titled an act to ascertain and declare Virginia’s equitable share
of the debt created before and actually existing at the time of
the partion of her territory and resources, and to provide for
the issuance of bonds coveriug the same, and the regular and

PranPt payment of the interest thereon, approved February 14,

Approved February 20, 1892.

Whereas by a joint resolution of the general assembly
of the state of Virginia, adopted on the third day of March,
eighteen hundred and ninety, a commission was appointed
on the part of Virginia to receive propositions for funding
the debt of the state not funded under the act known as
the ‘“ Riddleberger bill,” approved February fourteenth,
eighteen hundred and eighty-two, from a properly consti-
tuted representative of her creditors; and

Whereas said Virginia debt commission has submitted
& report to the general assembly, wherein it appears that
under a certain agreement, dated May twelfth, eighteen
hundred and ninety, lodged with the Central trust compa-
ny of New York, Frederick P. Olcott, William L. Bull,
Henry Budge, Charles D. Dickey, junior, Hugh R. Garden,
and John Gill, constituting a committee for certain of the
creditors of Virginia, called the ‘“ Bondholders’ commit-
tee,” have proposed to said commission to surrender to the
state in bulk not less than twenty-three million of dol-
lars of the public debt, unfunded under said act approved
February fourteenth, eighteen hundred and eighty-two, in
exchange for an issue of new bonds, as hereinafter speci-
fied, the same to be apportioned between the several classes
of creditors by a tribunal which the said creditors have
themselves appointed; and that, in pursuance of said pro-
posal, an agreement has been entered into unanimously
between the said commission and the said bondholders’
committee, subject to approval by the general assembly,
whereby in exchange for the said unsettled obligations of
the state held by the public, which were issued prior to
February fourteenth, eighteen hundred and eighty-two
(exclusive of evidences of debt held by the public insti-
tutions of the commonwealth pursuant to law and by the
United States), together with the interest thereon to July
first, eighteen hundred and ninety-one, inclusive, aggre-
gating about twenty-eight million of dollars, there shall
be issued nineteen million of dollars of new bonds, dated
July first, eighteen hundred and ninety-one, and maturing
one hundred years from said date, with interest thereon at
the rate of two per centum per annum for ten years from
said first day of July, eighteen hundred and ninety-one,
and three per centum per annum for ninety years thereaf-
ter to the date of maturity, said interest to be payable
semi-annually; of which aggregate debt of about twenty-
eight million of dollars the said bondholders’ committee
represent that they now hold and agree to surrender not
less than twenty-three million of dollars: and

Whereas said report and agreement contemplate the
surrender of the obligations held by the bondholders’ com-
mittee as an entirety, and do not contemplate an appor-
tionment by the general assembly between the various
classes of creditors so represented by said bondholders’
committee, the same having been committed to a distrib-
uting tribunal, as hereinbefore recited; and

Whereas it is the desire and intention of the general
assembly that a settlement of all the other outstanding
obligations of the state (except those issued under the
act of February fourteenth, eighteen hundred and eighty-
two, the evidences of debt held by the public institutions
of the state in pursuance of Jaw and by the United
States) as well as those controlled by the bondholders’
committee, as aforesaid, shall be made under the provis-
ions of this act: therefore,

1. Be it enacted by the general assembly of Virginia,
-That the commissioners of the sinking fund, a majority
of whom may act, be, and they are hereby, empowered
and directed to create “listable ” engraved bonds, regis-
tered and coupon, to such an extent as may be necessary
to issue nineteen million of dollars of bonds in lieu of the
twenty-eight million dollars of outstanding obligations,
not funded under the act approved February fourteenth,
eighteen hundred and eighty-two, hereinbefore recited.

Z. The said bonds shall be dated July first, eighteen
hundred and ninety-one, and be payable at the office of
the treasurer of the state, or at such agency in the city of
New York as may be designated by the state, on the first
day of July, nineteen hundred and ninety-one, and shall
bear interest from date, payable semi-annually on the
first days of January and July in each year, at the rate of
two per centum per annum for the first ten years and
three per centum per annum for the remaining ninety
years; the said interest may be payable in Richmond,
New York and London, or at either place, as may be des-
ignated by the state: provided that the state may at any
time, and from time to time, after July first, nineteen hun-
dred and six, redeem at par any part of the principal
with accrued interest. Incase of such redemption be-
fore maturity, the bonds to be paid shall be determined
by lot by said commissioners of the sinking fund, and
notice of the bonds so selected to be paid shall be given
by publication beginning at least ninety days pr ior to an
interest-due date, in a newspaper published in Richmond,
Virginia, one in New York city, and one in London, Eng-
land; and the interest from and after the next succeed-
ing interest-due date shall cease upon the bonds so des-
ignated to be paid: providéd that no registered bonds
shall be so redeemed while there are any coupon bonds
outstanding.

3. The form of the bonds shall be substantially as fol-
lows, to-wit:

Issued under act of assembly, approved
, eighteen hundred and ninety-two.

The commonwealth of Virginia acknowledges herself to
be indebted to —————- (in case of a coupon bond to the
bearer, and in case of a registered bond inserting the name
of a person or corporation, or assigns, ) in the sum of
dollars, which she promises to pay in lawful money of the
United States, at the office of the treasurer of the state, or
at such agency in the city of New York as may be desig-
nated by the state, on the first day of July, nineteen hun-
dred and ninety-one, with the option of payment at par
with accrued interest, before maturity at any time after
July first, nineteen hundred and six, and interest, at the
office of the treasurer of the state, or at the agencies of the
state in New York city and London, England, or at either
place, as may from time to time be designated by the state,
in such lawful money aforesaid, at the rate of two per
centum per annum for ten years from'the first day of July,
eighteen hundred and ninety-one, and at the rate of three
per centum per annum thereafter until paid, payable semi-
annually on January first and July first in-each year (ac-
cording to the tenor of the annexed coupon bearing the
engraved signature of the treasurer of the commonwealth
in case of coupon bonds). And this obligation is hereby
made exempt from any taxation by the said common-
wealth of Virginia, or any county or municipal corpora-
tion thereof. ,; )

In testimony whereof, witness the signature of the trea-
surer and the countersignature of the second auditor of the
commonwealth of Virginia, hereto affixed according ta
law.

[ Seal. ]

day of

, Treasurer.
, Second Auditor.

4. The form of coupon for coupon bonds shall be sub-
stantially as follows, to-wit:

Coupon No. —

On the first day of the commonwealth of Virginia
will pay to bearer dollars in lawful money of the
United States, at the office of the treasurer of the state, or
at the agencies of the state in New York city and London.
England, or at either place, as may be designated by the
state; the same being six months’ interest on bond num-
ber —. dollars.

Each coupon to be impressed on the back with its num-
ber, in order of maturity, from number one consecutively.

5. Said commissioners of the sinking fund are author-
ized to issue coupon bonds in denominations of five hun-
dred and one thousand dollars each, as may be necessary
to carry out the provisions of this act: provided that reg-
istered bonds may be issued of the denominations of one
hundred dollars, five hundred dollars, one thousand dol-
lars, five thousand dollars, ten thousand dollars; and they
are authorized and directed to issue said bonds, registered
or coupon, in exchange for the said outstanding obliga-
tions up to and including July first, eighteen hundred and
ninety-one (exclusive of evidences of debt held by public
institutions of the commonwealth as aforesaid and by the
United States) as follows:

A. Said bondholders’ committee may at any time on or
‘before the thirtieth day of June, eighteen hundred and
ninety-two, present to said commissioners for verification
bonds and other evidences of debt, and coupons or other
evidences of interest thereon, obligations of the state of
Virginia, held by said committee, for exchange as afore-
said; and said commissioners shall determine whether
the obligations so presented are genuine obligations of the
state and whether the coupons or other evidences of inter-
est represent interest accrued on such obligations (exclu-
sive of evidences of debt held by public institutions
of the commonwealth as aforesaid and by the United
States).

B. Such of the obligations so presented for verification
as may be determined by said commissioners to conform
to the requirements of paragraph A hereof, shall be sealed
in convenient packages as the examination proceeds.
Each of the packages shall be numbered, and upon each
package shall be endorsed the amount and character of
the obligations therein contained. Such endorsement on
each package shall be signed by said commissioners or a
majority thereof, and the package shall then be delivered
to said committee or its agent. Said commissioners shall
keep in a book to be provided for the purpose a record of
the numbers of all such packages and of the amount and
character of the obligations contained in each. Such obli-
gations presented by said bondholders’ committee as do
not conform to the requirements of paragraph A hereof
shall be returned to said committee; but said commis-
sioners shall keep a record thereof in the book aforesaid.

C. After said bondholders’ committee shall have pre-
sented to said commissioners for verification bonds and
other evidences of debt and coupons, or other evidences of
interest thereon accrued on or before July first, eighteen
hundred and ninety-one, obligations of the state of Vir-
ginia, all conforming to the requirements of paragraph A
hereof, as determined by said commissioners, and amount-
ing in the aggregate te not less than twenty-three million
of dollars, after deducting one-third of the principal and
interest of such obligations as were issued prior to the
thirtieth day of March, eighteen hundred and seventy-one,
and also deducting one-third of the principal and interest
of such obligations as were issued under the act approved
the thirtieth day of March, eighteen hundred and seventy-
one, as do include West Virginia’s proportion, said bond-
holders’ committee may at any time on or prior to the
thirtieth day of June, eighteen hundred and ninety-two,
present the same in bulk to said commissioners for sur-
render and exchange as herein provided. All coupons
matured or to mature on coupon bonds after July first,
eighteen hundred and ninety-one, or coupons of like class
and amount, or the face value thereof in cash, shal] be sur-
rendered with such bonds, the said cash to be returned if
proper coupons are subsequently tendered. And when the
said bondholders’ committee shall have presented for ex-
change the obligations aforesaid to an amount of twenty-
three million of dollars or more, if the engraved bonds
hereinbefore authorized are not ready for exchange, the
said commissioners shall, upon application of said bond-
holders’ committee, issue to said bondholders’ committee
a manuscript registered bond of the state of Virginia, sub-
stantially of the form of the bond hereinbefore specified,
for the aggregate amount to which the said committee may
be entitled for the obligations so presented under this act,
the said bond to be exchangeable for the engraved bonds
aforesaid of character and amount required by said com-
mittee, as prescribed in this act, and interest in the mean-
time on said manuscript bond shall be paid as herein
provided for on the engraved bonds.

D. The said new bonds shall be issued to said bondhold-
ers’ committee by the said commissioners in the following
proportion, to-wit: nineteen thousand dollars of the new
bonds to be created under this act shall be issued for every
twenty-eight thousand of old outstanding obligations
(principal and interest to July first, eighteen hundred and
ninety-one), as aforesaid, surrendered by said bondhold-
ers’ committee to the said commissioners, after the deduc-
tions provided for in paragraph C of this section; and a
proportionate amount of said new bonds shall be issued
for smaller sums of said outstanding obligations so sur-
rendered: provided that no certificates issued on account
of the proportion of West Virginia of the obligations of
the state shall be funded under this act. When said bond-
holders’ committee shall have surrendered and exchanged
such obligations as aforesaid to the amount of at least
twenty-three million dollars, said committee may at any
time thereafter up to and including the thirtieth day of
June, eighteen hundred and ninety-two, present to said
commissioners for verification, surrender, and exchange ad-
ditional obligations, principal and interest, as aforesaid ;
all coupons matured or to mature on coupon bonds after
July first, eighteen hundred and ninety-one, or coupons of
like class and amount, or the face value thereof in cash, to
be presented with such bonds, the cash, if paid, to be re-
turned if proper coupons are subsequently tendered. After
said commissioners shall have determined that said obli-
gations conform to the requirements of paragraph A here-
of, said commissioners shall accept the obligations so pre-
sented for surrender and exchange by said committee, and
ehall deliver to said committee in exchange therefor new
bonds issued under the provisions of this act in the same
proportion as is set out in this paragraph of this section,
after making the deductions provided for in paragraph C
of this section.

E. If on making the exchange provided for in this act
said committee shall be found entitled to a fractional
amount or amounts less than one hundred dollars in addi-
tion to the new bonds delivered to it, said commissioners
of the sinking fund shall issue to the committee a certifi-
cate or certificates for such amount or amounts. Such
fractional certificates shall be exchangeable for the bonds
authorized by this act to be issued in sums of one hun-
dred dollars, or any multiple thereof, and certificates of
like character shall be issued for any fractional amount
which may remain in making the exchange.

6. For all balances of the indebtedness, constituting

West Virginia’s share of the old debt, principal and inter-
est, in the settlement of Virginia’s equitable share of the
bonds authorized to be exchanged under this act, the said
share having been heretofore determined by the common-
wealth of Virginia, the said commissioners shall issue cer-
tificates substantially in the following form, viz.:
— No. . The commonwealth of Virginia has this day
discharged her equitable share of the (registered or coupon,
as the case may be,) bond for ———* dollars, dated
day of , and No. , leaving a balance of
dollars, with interest from , to be accounted for to
the holder of this certificate by the state of West Virginia,
without recourse upon this commonwealth.

Done at the capitol of the state of Virginia, this
day of , eighteen hundred and ninety-two.

, Second Auditor.
., Treasurer.

The certificates so issued under sections five and six of
this act shall be recorded by the second auditor in a book
kept for that purpose, giving the date and number of the
transaction to which it refers, the amount of certificates,
and the name of the person or corporation to whom issued

and delivered ; and assuch certificates, authorized by para-
graph E, section five of this act, are exchanged, the same
shall be cancelled and preserved as herein provided in re-
spect to the evidences of debt refunded.

7. The commissioners of the sinking fund are hereby
authorized and required to receive on deposit for verifica-
tion, classification and exchange such of the said obliga-
tions of the state as may be presented to said commission-
ers; provided, that said commissioners shall not receive
on deposit for the purposes aforesaid any outstanding ob-
ligations of the state which have been once deposited with
the bondholders’ committee, or may be hereafter deposited
with them; the said verification and exchange for the new
bonds of the obligations so deposited to be conducted in the
same manner as hereinbefore provided with respect to the
obligations deposited with the said bondholders’ committee,
and the said commissioners of the sinking fund shall
issue to and distribute amongst said depositing creditors
after they have fully complied with the terms of this act,
in exchange for the obligations so deposited, bonds au-
thorized by this act as follows, namely: to each of the
several classes of said depositing crediters the same pro-
portion, as nearly as may be found in their judgment
practicable by the commissioners of the sinking fund, as
the same class shall receive under the distribution which
shall be made by the commission for the creditors repre-
sented by the bondholders’ committee: provided that no
obligations shall be received for such deposit after the
thirtieth day of June, eighteen hundred and ninety-two,
nor shall any coupon bonds be received which do not have at-
tached thereto all the coupons maturing after July first,
eighteen. hundred and ninety-one; but for any such cou-
pons as may be missing, coupons of like class and amount,
or the face value thereof in cash, may be received; the
said cash, if paid, to be returned if proper coupons are
subsequently tendered; and each depositor shall, when
he receives his distributive share of the said new issue
of bonds, pay to ,the commissioners of the sinking fund
three and one-half per centum in cash of the par value
of the bonds received by him, or a commission equal in
amount to that which may at any time hereafter be fixed
by the said committee of bondholders upon any bonds
deposited with hem, not, however, in any case to exceed
three and one-half per centum; and said sinking fund
commissioners shall cover the fund thus received into
the treasury of the commonwealth.

8. All the coupon and registered bonds issued under
this act shall be separately recorded by the second audi-.
tor in books provided for the specific purpose, in each
case giving the date, number, amount of obligations is-
sued, and the name of the person or corporatien to whom
issued, and the date, number, amount and description of
the obligations surrendered.

9. All the bonds and certificates of debt, and evidences
of past due and unpaid interest, taken in under the pro-
visions of this act, shall be cancelled by the treasurer in
the presence of the commissioners of the sinking fund, or
a majority thereof, as the same are acquired, and by him
carefully preserved, subject to disposition by the general
assembly; a schedule of the bonds, certificates, and other
evidences of debt so cancelled shall be certified by said
commissioners and filed by the treasurer for preservation.

10. In the year nineteen hundred and ten, and annually
thereafter, there shall be set apart of the revenue collected
from the property of the state each year up to and includ-
ing the year nineteen hundred and twenty-nine, one-half
of one per cent. upon the bonds issued under this act, as
well as upon the outstanding bonds issued under act ap-
proved February fourteenth, eighteen hundred and eighty-
two; and in the year nineteen hundred and thirty, and
annually thereafter until all the bonds issued under this
act and the said act approved February fourteenth, eighteen
hundred and eighty-two, are paid, there shall be set apart
of the revenue collected from the property of the state each
year one percent. upon the outstanding bonda issued under
the aforesaid acts, which shall be paid into the treasury to
the credit of the sinking fund, and the commissioners of
the sinking fund shall annually, or oftener, apply the
same to the redemption or purchase (at a rate not above
par and accrued interest) of the bonds issued under the
aforesaid acts, and the bonds so redeemed shall be can-
celled by the said commissioners and the same registered
by the second auditor in a book to be kept for that purpose,
giving the number and date of issue, the character, the
amount, and the owner at the time of purchase, of the
bonds so redeemed and cancelled; and in case no such
purchase of bonds can be made, then the amount which
can be redeemed shall be called in by lot, as provided in
section twoof this act. All bonds of the state issued under
the provisions of the act aforesaid, approved February
fourteenth, eighteen hundred and eighty-two, and now
held by said commissioners of the sinking fund, shall, as
soon as at least fifteen million of dollars of new bonds
shall have been issued and delivered pursuant to the pro-
visions of this act, be cancelled by said commissioners
and preserved in the office of the treasurer of the com-
monwealth.

11. Executors, administrators and others acting as fidu-
ciaries may participate in the settlement of the debt herein
specified in the manner hereinbefore provided, and such
action shall be deemed a lawful investment of their trust
fund. Executors, administrators and others acting as fidu-
ciaries may invest in the bonds issued under this act, and
the same shall be considered a lawful investment.

12. All coupons heretofore tendered for taxes and held
by said tax-payers in pursuance of such tender, shall be
received in payment of the taxes for which they were ten-
dered, and upon their delivery to the proper collector or
the amount thereof in money, the judgments obtained
against the said tax-payers for such taxes shall be marked
satisfied: provided the said tax-payers shall have paid in
money and not in coupons the costs of said judgments.
All coupons heretofore tendered for taxes and held by the
officers of the commonwealth for verification, in pursuance
of the statute in such case made and provided, shall be re-
ceived in payment of the taxes for which they were ten-
dered, and the money collected for such taxes returned to
the parties from whom it was received: provided the said
tax-payers shall have paid in money, and not in coupons,
aJi costs incurred in legal proceedings to verify said cou-

ns.

13. The treasurer of the commonwealth is authorized
and directed to pay the interest on the bonds issued under
this act as the same shall become due and payable out of
any money in the treasury not otherwise appropriated.

14. The plates from which the bonds and fractional cer-
tificates authorized by this act are printed shall be the
property of the commonwealth.

15. All necessary expenses incurred in the execution of
this act shall be paid out of any money in the treasury not
otherwise appropriated on the warrants of the auditor of
public accounts, drawn upon the treasury on the order of
the commissioners of the sinking fund.

16. The act entitled “an act to ascertain and declare
Virginia's equitable share of the debt created before and
actually existing at the time of the partition of her terri-
tory and resources, and to provide for the issuance of bonds
covering the same, and the regular and prompt payment of
interest thereon,” approved February fourteenth, eighteen
hundred and eighty-two, and the amendments thereto, to-
wit: an act entitled “an act to declare the true intent and
meaning of, and to amend and re-enact section five of
chapter eighty-four of acts eighteen hundred and eighty-
one and eighteen hundred eighty-two, approved February
fourteenth, eighteen hundred and eighty-two,” approved
August twenty-seventh, eighteen hundred and eighty-four;
and the act entitled “an act to amend and re-enact an act
approved August twenty-seventh, eighteen hundred and
eighty-four, entitled an act to declare the true intent and
meaning of,and to amend andre-enact section five of chapter
eighty-four of acts of eighteen hundred and eighty-one and
eighteen hundred and eighty-two, approved February four-
teenth, eighteen hundred and eighty-two,” approved No.
vember twenty-ninth, eighteen hundred and eighty-four
are hereby repealed.

17. The commissioners of the sinking fund are author-
ized, if it shall seem to them for the best interest of the
commonwealth, to make one extension of the time for the
funding of the said twenty-eight million of dollars of out-
standing evidences of debt for a period not exceeding six
months from the thirtieth day of June, eighteen hundred
and ninety-two.

18. The commissioners of the sinking fund are author-
ized to exchange coupon bonds issued under this act into
registered bonds in the denominations hereinbefore pro-
vided, and to arrange for the transfer of registered bonds.
For every bond so issued in exchange a fee of fifty cents
shall be charged by and paid to the second auditor, and
shall, upon his order, be covered into the treasury to the
credit of the sinking fund; and bonds so taken in exchange
shall be cancelled in the manner hereinbefore prescribed.

19. This act shall be in force from its passage.