Chap. 461.—An ACT to amend and re-enact title 12 of the Code of Virginia, ia
relation to the public debt.

Approved December 17, 1903.

1. Be it enacted by the general assembly of Virginia, That title twelve.
chapter twenty-two, of the Code of Virginia, concerning the publie debt,
be amended and re-cnacted so as to read as follows:

TITLE TWELVE.
Public Debt.

CHAPTER XXII.

Concerning the public debt,

§ 383. Statement of the State debt; commissioners of sinking fund to
create bonds for same.

§ 384. Bonds; character; condition; amount to be issued.

§ 385. Bonds, when to be dated; interest, how paid, and in case of re
demption, notice to be given.

§ 386. Form of bonds and coupon; exemption from taxation.

§ 387, Denomination of bonds,
§ 388. A. What may be exchanged for bonds.

§ 389. B. Verified obligation to be sealed and filed.

§ 390. C. Within what time funding to be accomplished.

§ 391. D. Ratio of new issue to old debt. West Virginia certificates
not fundable.

& 392. E. Fractional certificates. -

§ 393. West Virginia’s share; how accounted for; form of certificates.

§ 394. Recordation, by whom to be made.

§ 395. Obligations to be held for verification; exceptions; limit as to
time. .

§ 396. New bonds to be separately recorded.

$ 397. Refunded bonds to be destroyed.

$ 398. Sinking fund, the rate; and application of sinking fund.

g 399. Fiduciary funds may be invested in these bonds.

§ 400. Coupons tendered for taxes; how to be received; conditions.

§ 401. Interest to be paid by treasurer.

§ 402. Plates to be property of State.

§ 403. Expenses ; how paid.

§ 404. Repealing the act of February fourteenth, eighteen hundred
and eighty-two, known as the Riddleberger bill, and supplemental acts.

§ 405. Time for funding may be extended.

§ 406. Fee for issuing bonds.

§ 407. No other bonds, et cetera, to be issued. for State debt.

§ 408. Gold, silver, or bank notes only to be received for taxes; officer
not to convert money into coupons.

§ 409. Officer to keep books showing amounts received in coupons, and
from whom.

§ 410. Penalty for violating section four hundred and nine or four
hundred and ten.

§ 411. Who are brokers.

§ 412. Chartered companies to pay taxes in money.

§ 413. Charter forfeited if taxes not paid in money.

§ 414. Attorney-general to institute proceedings to have charter for-
feited.

§ 415. Officers and employees of treasurer’s and auditor’s offices not to
leave office to testify; may give depositions; copies of books, et cetera, to
be evidence.

§ 416. Board of indemnity.

§ 417. How indemnity to auditor allowed.

§ 418. Commissioners of sinking fund; their duties.

§ 419. Sinking fund, of what constituted.

§ 420. To be used in buying bonds.

§ 421. How amount to be expended is ascertained ; bonds to be bought
by sealed bids.

§ 422. How moneys of sinking fund paid into treasury; how paid out.

§ 423. Treasurer to reccive and pay moneys of sinking fund; to report
to general assembly.

8 424. To keep register of coupons.
§ 425. Coupons to be compared with register monthly,
708 ACTS OF ASSEMBLY.

§ 426. Treasurer to cancel coupons received for taxes.

§ 427. Registry of certificates of debt.

$ 428. How certificates signed and paid.

§ 429. Who deemed owner of certificate.

$ 430. How certificates sold, et cetera.

§$ 431. How transferred on books of office.

§ 432. Auditor may cancel old certificate and issue new.

§ 433. Where cancelled certificate to remain; how new certificate
sued and registered.

§ 434. How lost certificate renewed.

§ 435. Executive may effect temporary loans.

§ 436. Board of education to keep certificates of West Virginia’s sh:
of the debt.

§ 383. Statement of the State debt; commissioners of sinking fund
create bonds for same.—Thie general assembly having passed an act
titled “an act to provide for the settlement of the public debt of Virgi
not funded under the provisions of an act entitled an act to ascertain a
declare Virginia’s equitable share of the debt created before and actue
existing at the time of the partition of her territory and resources, and
provide for the issuance of bonds covering the same, and the regular ¢
prompt payment of the interest thereon, approved February fourteer
eighteen hundred and eighty-two,” approved February twentieth, ei
teen hundred and ninety-two, and having in the preamble of said act
clared that—

Whereas, by a joint resolution of the general assembly of the State
Virginia, adopted on the third dav of March, eighteen hundred :
ninety, a commission was appointed on the part of Virginia to reci
propositions for funding the debt of the State not funded under the
known as the “Riddleherger bill,” approved February fourteenth, ci
teen hundred and eighty-two, from a properly constituted representa'
of her creditors ; and,

Whereas, said Virginia debt commission has submitted a report to
general assembly, wherein it appears that under a certain agreem
dated May twelfth, cighteen hundred and ninety, lodged with the Cen
Trust Company of New York, Frederick P. Olcott, William L. B
Henry Budge, Charles D. Dickey, junior, Hugh R. Garden, and J
Gill, constituting a committee for certain of the ereditors of Virgil
called the “bondholders’ committee,” have proposed to said commiss
to surrender to the State in bulk not less than twenty-three million
dollars of the public debt, unfunded under said act approved Febru
fourteenth, eighteen hundred and cighty-two, in exchange for an issue
new bonds, as hereinafter specificd, the same to be apportioned betw
the several classes of creditors by a tribunal which the said creditors h
themselves appointed ; and that, in pursuance of said proposal, an ag.
ment has been entered into unanimously between the said commis:
and the said bondholders’ committee, subject. to approval by the gen
assembly, whereby in exchange for the said unsettled obligations of
State held by the public, w hich were issued prior to February fourtee:
eighteen hundred and cighty-two (exclusive of evidences of debt held
the public institutions of the Commonwealth pursuant to law and by the
United States), together with the intercst thereon to July first, eighteen
hundred and ninety-one, inclusive, aggregating about twenty-eight mil-
lion 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 thereafter to the date of maturity, said interest to be payable semi-
annually; of which aggregate debt of about twenty-eight million of dol-
lars 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’ committee as an entirety, and do not
contemplate an apportionment by the general assembly between the va-
rious classes of creditors so represented by said bondholders’ committee,
the same having been committed to a distributing tribunal, as hereinbe-
fore 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, cighteen hundred and
cighty-two, the evidences of debt held by the public institutions of the
State in pursuance of law and by the United States), as well as those con:
trolled by the bondholders’ committee as aforesaid, shall be made under
the provisions of this act; therefore,

$ 384. Bonds; character; condition; amount to be issued.—The com-
missioners of the sinking fund, a majority of whom may act, are hereby
empowered and directed to create “listable” engraved bonds, registered
and coupon, to such an extent as may be necessary to issue nineteen mil-
lion of dollars of bonds in lieu of the twenty-eight million dollars of out-
standing obligations not funded under the act approved February four-
teenth, eighteen hundred and eighty-two, hereinbefore recited.

§ 385. Bonds; where to be dated; interest, how paid; and in case of
redemption, notice to be given.—The said bonds shall be dated July first,
eighteen hundred and ninety-one, and be payable at the office of the treas-
urer 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 an-
num for the remaining ninety years; the said interest may be payable in
Richmond, New York, and London, or at either place, as may be desig-
nated by the State: provided, that the State may at any time, and from
time to time after July first, nineteen hundred and six, redeem at par
any part of the principal with accrued interest. In case of such redemp-
tion before maturity, the bonds to be paid shall be determined by lot by
said commissioners of the sinking fund, and notice of the bonds so se-
lected to be paid shall be given by publication, beginning at least ninety
days prior to an interest-due date in a newspaper published in Richmond,
Virginia, one in New York city, and one in London, England; and the
410 ACTS OF ASSEMBLY.

interest from and after the next succeeding interest-due date shall ceas:
upon the bonds so designated to be paid: provided, that no registerel
bonds shall be so redeemed while there are any coupon bonds outstandinz

§ 386. Form of bonds and coupons; exemption from taxation.—Th:
form of the bonds shall be substantially as follows, to-wit:

Issued under act of assembly, approved day of
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 2
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 oi
the United States, at the office of the treasurer of the State, or at such
agency in the city of New York as may he designated by the State, on th:
first day of July, nineteen hundred and ninety-one, with the option o!
payment at par, with accrued interest, before maturity at any time after
July first, nineteen hundred and six, and interest, at the office of th:
treasurer of the State, or at the agencies of the State in New York citi
and London, England, or at either place, as may from time to time bk
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, eigh-
teen hundred and ninety-one, and at the rate of three per centum per an-
num thereafter until paid, payable semi-annually on January first and
July first in each year (according 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 Commonwealth of Virginia, or any county ot
municipal corporation thereof.

In testimony whereof, witness the signature of the treasurer and the
countersignature of the second auditor of the Commonwealth of Virginia.
hereto affixed according to law.

(Seal) —_—_—_____——,, Treasurer.

———__—_———-,, Second Auditor.

The form of coupon for coupon bonds shall be substantially as fol-
lows, to-wit:

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 number —,
dollars.

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

§ 387. Denominations of bond.—Said commissioners of the sinking
fund are authorized 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 registered bonds may be issued of
the denominations of one hundred dollars, five hundred dollars, one thou-
sand dollars, five thousand dollars, ten thousand dollars; and they are
authorized and directed to issue said bonds, registered or coupon, in ex-

change for the said outstanding obligations 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:

§ 388. What may be exchanged for bonds.—A. Said bondholders’ com-
mittee 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 in-
terest thereon, obligations of the State of Virginia, held by said com-
mittee, for exchange as aforesaid; and said commissioners shall deter-
mine whether the obligations so presented are genuine obligations of the
State and whether the coupons or other evidences of interest represent
interest accrued on such obligations (exclusive of evidences of debt held
by public institutions of the Commonwealth as aforesaid and.by the
United States).

§ 389. Verified obligations to be sealed and filed.—B. Such of the ob-
ligations so presented for verification as may be determined by said com-
missioners to conform to the requirements of section three hundred and
eighty-eight hereof shall be sealed in convenient packages as the exami-
nation proceeds. Each of the packages shall be numbered, and upon
each package shall be endorsed the amount and character of the obliga-
tions 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 num-
bers of all such packages and of the amount and character of the obliga-
tions contained in each. Such obligations presented by said bondholders’
committee as do not conform to the requirements of section three hun-
dred and eighty-eight hereof shall be returned to said committee; but
said commissioners shall keep a record thereof in the book aforesaid.

§ 390. Within what time funding to be accomplished.—C. After said
bondholders’ committee shall have presented to said commissioners for
verification bonds and other evidences of debt and coupons, or other evi-
dences of interest thereon accrued on or before July first, eighteen hun-
cred and ninety-one, obligations of the State of Virginia, all conforming
te the requirements of section three hundred and eighty-eight hereof, as
determined by said commissioners, and amounting in the aggregate to 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 thirti-
eth 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 bondholders’
committee may at any time on or prior to the thirtieth day of June, eigh-
teen hundred and ninety-two, present the same in bulk to said commis-
sioners for surrender and exchange as herein provided. All coupons ma-
tured 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, shall be surrendered with such bonds, the said cash to be
returned if proper coupons are subsequently tendered. And when the
s2id bondholders’ committee shall have presented for exchange the «lt
gations aforesaid {fo an amount of twenty-three million of dollars or mor
if the engraved bonds hereinbefore authorized are not ready for exchange.
the said commissioners shall, upon application of said bondholders’ com-
mittee, issue to said bondholders’ committee a manuscript registered bon:
of the State of Virginia, substantially of the form of the bond hereinte-
fore specified, for the aggregate amount to which the said committee
may be entitled for the obligations so presented under this act, the said
Lond to be exchangeable for the engraved bonds aforesaid of character
and amount required by said committee, as prescribed in this act, and in-
tcrest in the meantime on said manuscript bond shall be paid as herein
provided for on the engraved bonds.

§ 391. Ratio of new issue to old debt; West Virginia securities not
fundable-——D. The said new bonds shall be issued to said bondholders’
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 obliga-
tiots (principal and interest to July first, eighteen hundred and ninety-
one), as aforesaid, surrendered by said bondholders’ committee to the said
commissioners, after deductions provided for in section three hundred
and ninety hereof; and a proportionate amount of said new bonds shall be
issued for smaller sums of said outstanding obligations so surrendered:
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 bondholders’ committee shall have surrendered and: exchanged
such obligations as aforesaid to the amount of at Icast twenty-three mil-
lion dollars, said committee may at any time thereafter, up to and in-
cluding the thirtieth day of June, eighteen hundred and ninety-two, pre
sent to said commissioners for verification, surrender, and exchange addi-
tional obligations, principal and interest, as aforesaid; all coupons ma-
tured 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
returned if proper coupons are subsequently tendered. After said com-
missioners shall have determined that said obligations conform to the
requirements of section three hundred and eighty-eight hereof, said com-
missioners shall accept the obligations so presented for surrender and ex-
change by said committec, and shall 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 section, after making the deductions pro-
vided for in section three hundred and ninety.

§ 392. Fractional certificates——E. If on making the exchange pro-
vided for in this act said committee shall be found entitled to a fractional
amount or amounts less than one hundred dollars in addition to the new
bonds delivered to it, said commissioners of the sinking fund shall issue
to the committee a certificate or certificates for such amount or amounts.
Such fractional certificates shal] be exchangeable for the bonds authorized
by this act to be issued in sums of one hundred dollars, or any multiple
thereof, and certificates of like character shall be issued for any frac
tional amount which may remain in making the exchange. .
$393. West Virginia’s share ; how accounted for; form of certificate —
For all balances of the indebtedness, constituting West Virginia’s share
of the old debt, principal and interest, in the settlement of Virginia’:
equitable share of the bonds authorized to be exchanged under this act,
the said share having been heretofore determined by the Commonwealth
of Virginia, the said commissioners shall issue certificates substantially
“n the following form, namely :

Number . The Commonwealth of Virginia has this day discharged
oer equitable share of the (registered or coupon, as the case may be) bond
for dollars, dated —--— day of —-—,, and number —-—,, 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
eighteen hundred and ninety-two.

day of ,

, Second Auditor.
, Treasurer.

§ 394. Recordation; by whom made.—The certificates so issued under
sections three hundred and ninety-two and three hundred and ninety-
three 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 corpora-
tion to whom issued and delivered ; and as such certificates, authorized by
section three hundred and ninety-two hereof are exchanged, the same shall
be cancelled and preserved as herein provided in respect to the evidences
of debt refunded.

§ 395. Obligations to be held for verification; exceptions; limit as to
time.—The commissioners of the sinking fund are hereby authorized and
required to receive on deposit for verification, classification, and ex-
change such of the said obligations of the State as may be presented to
said commissioners: provided, that said commissioners shall not receive
on deposit for the purposes aforesaid any outstanding obligations of the
State which have been once deposited with the bondholders’ committee,
or may be hereafter deposited with them; the said verification and ex-
change for the new bonds of the obligations so deposited to be conducted
in the same manner as hereinbefore provided with respect to the obliga-
tions deposited with the said bondholders’ committee, and the said com-
missioners of the sinking fund shall issue to and distribute amongst said
depositing ereditors, after they have fully complied with the terms of this
act, in exchange for the obligations so deposited, bonds authorized by this
act as follows, namely: To each of the several classes of said depositing
creditors the same proportion, as nearly as may be found in their judg-
ment practicable by the commissioners of the sinking fund, as the same
class receive under the distribution which shall be made by the commis-
sion for the creditors represented by the bondholders’ committee: pro-
vided, that no obligations shall be received for such deposit after the
thirty-first day of December, nineteen hundred and three, nor shell any
eoupon bonds be received which do not have attached thereto all the cou-
pons maturing after July first, eighteen hundred and ninety-one; for
v1+t ACTS OF ASSEMBLY.

any such coupons as may be missing, coupons of like class and amount, ur
the face value thereof in cash, may be received ; the said cash, if paid, to
he returned if proper coupons are subsequently tendered; and each de-
positor shall, when he receives his distributive share of the said bonds,
pay to the commissioners of the sinking fund three and one-half per
centum in eash of the par value of the bonds received by him, or a com-
mission equal in amount to that which may at any time hereafter be fixed
by the said committee of bondholders upon any bonds deposited with
them, 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.

§ 396. New bonds to be separately recorded.—All the coupon and reg-
istered bonds issued under this act shall be separately recorded by the
sccond auditor in books provided for the specific purpose, in each case
giving the date, number, amount of obligations issued, and the name of
the person or corporation to whom issued, and the date, number, amount,
and description of the obligations surrendered.

$397. Refunded bonds to be cancelicd.—All the bonds and certificates
of debt, and evidences of past due and unpaid interest, taken in under the
provisions 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 required, and by him carefully preserved, subject to disposition
hy 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.

§ 398. Sinking fund; the rate and application of sinking fund.—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
vear up to and including the year nineteen hundred and twenty-nine.
one-half of one per centum upon the bonds issued under this act, as well
as upon the outstanding bonds issued under act approved February four-
teenth, eighteen hundred and eighty-two; and in the year nineteen hun-
dred 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 per centum upon the out-
standing bonds 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 redemp-
tion 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
cancelled 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 ease 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 two of this act. All bonds of the
State issued under the provisions of the act aforesaid, approved Febrv-
ary fourteenth, eighteen hundred and eighty-two, and now held by said
commissioners of the sinking fund, shall, as soon as at least fifteen mil-
lion of dollars of new bonds shall have been issued and delivered pursuant
to the provisions of this act, be cancelled by said commissioners and pre-
served in the office of the treasurer of the Commonwealth.

§ 399. Fiduciary funds may be invested in these bonds.—Executors,
administrators, and others acting as fiduciaries may participate in the set-
tlement 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 fiduciaries may invest in
the bonds issued under this act, and the same shall be considered a lawful
investment.

§ 400. Coupons tendered for taxes; how to be received; conditions.—
All coupons heretofore tendered for taxes and held by said taxpayers in
pursuance of such tender shall be received in payment of the taxes for
which they were tendered, and upon their delivery to the proper collector,
or the amount thereof in money, with interest from date of such tender
(acts eighteen hundred and ninety-seven and eighteen hundred and
ninety-eight, page three hundred and sixteen), the judgments obtained
against the said taxpayers for such taxcs shall be marked satisfied: pro-
vided, the said taxpayers 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 received in payment
of the taxes for which they were tendered, and the money collected for
such taxes returned to the parties from whom it was received: provided,
the said taxpayers shall have paid in money, and not in coupons, all
costs incurred in legal proceedings {o verify said coupons.

§ 401. Interest to be paid by treasurer—The treasurer of the Common-
wealth 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.

§ 402. Plates property of the State—The plates from which the bonds
and fractional certificates authorized by this act are printed shall be the
property of the Commonwealth.

§ 403. Expenses; how paid.—All necessary expenses incurred in the
execution of this act shall be paid out of any moncy 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

d.

§ 404. Repealing the Riddleberger legislation —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 territory
and resources, and to provide for the issuance of bonds covering the same,
and the regular and prompt payment of interest thereon,” approved Feb-
ruary 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-two, approved February fourteenth,
eighteen hundred and eighty-two,” approved August twenty-seventh,
een hundred and eighty-four, and the act entitled “an act to amend
re-enact an act approved August twenty-seventh, eighteen hundre?
ighty-four, entitled an act to delare the true intent and meaning of,
foamend and re-enact section five of chapter cighty-four of aets of
cen hundred and eighty-one and eighteen hundred and eighty-twu.
wed February fourteenth, eighteen hundred and eighty-two,” ap
d November twenty-ninth, eighteen hundred and cighty-four, are
yy repealed.

05. Time for funding may be extended.—The commissioners of the
ng fund are authorized, if it shall seem to them for the best interest
ie Commonwealth, to make a further extension of the time for the
ing of the said twenty-eight million of dollars of outstanding evi-
es of debt for a period not exceeding six months from the thirty-first
of December, nineteen hundred and three.

L06. Exchange and transfer of bonds and fce for issuing bonds.—The
nissioners of the sinking fund are authorized to exchange coupon
s issued under this act into registered bonds in the denominations
nbefore provided, and to arrange for the transfer of registered bonds.
every bond so issued in exchange a fee of fifty cents shall be charged
nd paid to the second auditor; and shall, upon his order, be covered
the treasury to the eredit of the sinking fund; and bonds so taken in
ange shall be cancelled in the manner hereinbefore prescribed.

107. No other bonds, ct cetera. to be issued for State debt—No
s, certificates, or other evidences of indebtedness shall be issued for
portion of the debt of this State, nor shall any interest be paid
on, except as hereinbefore provided.

108. Gold, silver, or bank notes only to be received for taxes ; officer
to convert money into coupons.—It shall not be lawful for any offi-
-harged with the collection of taxes, debts, or other demand: of the
e to receive in payment thereof anything clse than gold or silver
, United States treasury notes, or national bank notes; or to convert
moneys received by him into coupons, either direetly or indirectly, by
hase, exchange, or otherwise; but he shall account to the treasury of
State in money, or by check or draft, for all taxes, debts, or other de-
ds of the State received by him in monev; nor shall it be lawful for
officer to purchase coupons for the purpose of the sale thereof, or to
the same during his continuance in office.

409. Officer to keep books showing amounts received in coupons, and
1 whom.—Every such officer shall preserve upon the books of his 5f-
a statement showing the amounts received by him in coupons, and
parties from whom received, which shall be open to the inspection of
one desiring to examine the same, and he shall accompany any settle-
t made by him with a sworn statement of the aggregate amount col-
d by him in coupons.

410. Penalty for violating sections four hundred and eight and four
lred and nine.—Every violation of the provisions of either of the
preceding sections shall be deemed a misdemeanor, and upon convic-
thereof, the offender shall be fined not less than one hundred nor
> than one thousand dollars, and, at the discretion of the jury, be con-
1 in jail not exceeding thirty days.
§$ 411. Who are brokers.—Any party buying and selling such coupons
shall be deemed a broker within the meaning of the license laws of this
State.

§ 412. Chartered companies to pay taxes in money.—Every corpora-
tion hereafter chartered by the general assembly, or under the laws
thereof, and every corporation now ‘n existence, whose charter shall here-
2fter be amended, renewed, or extended, shall pay in current money of
the United States all its taxes and other demands against it due the
State, and every such charter shall be granted upon the express condition
that such taxes and other demands shall be so paid, although such con-
dition be not set out in said charter.

§$ 413. Charter forfeited if taxes not paid in money.—If any such cor-
poration, or any other corporation whose charter is subject to repeal under
the general laws of this Commonwealth, or by the express provisions of its
own charter, shall pay its taxes or other demands against it due the State,
ov any part thereof, in any other thing than current money of the United
States, the said corporation shall forfeit all the rights, privileges, and
franchises granted it by its said charter.

$414. Attorney-general to institute procecdings to have charter for-
Feited.—The auditor of public accounts, whenever the returns or records
in. his office show that such corporation has paid its taxes or other de-

mands against it due the State, or any part thereof, in any other thing
than current money of the United States, shall give notice thereof to the
attorney-general, who shall forthwith institute the proper legal pro-
ceedings to have the charter of said corporation declared forfeited.

§ 415. Officers and employees of treasurer’s and auditor’s offices not to
inane office to testify; mav give depositions: copies, books, et cetera, to
be evidence.—No oflicer, clerk, or employee of the treasurer's office, office
of the auditor of public accounts, or of the second auditor, shall be re-
quired to leave his office for the purpose of testifying in any suit, action.
or other civil proceeding involving the genuinencss ofa coupon tendered
in payment of taxes, debts, or other demands due the State, nor shall any
hook, record, or paper belonging to cither of the said offices be taken
therefrom to he used as evidence im any such suit, action, or proceeding ;
but the deposition of cither of said officers, clerks, or employees may be
taken, provided the same be taken in other than office hours. and a copy
of any such book, record, or paper. in either of said offices, attested
as provided in section thirty-three hundred and thirty-four, may be ad-
mnitted as evidence in lieu of the original.

$416. Board of indemnity.—Upon the application of any oftieer
charged with the duty of collecting taxes, debts, or demands of the State,
a board, consisting of the attorney-general, secretary of the Conmon-
wealth, anditor of public accounts, second auditor, and treasurer, shall
be authorized to ascertain and allow such officer such sum of money as
they may deem just and proper, to cover any liability and expense in-
curred by, and any loss or damage accrued to him as the result of his col-
lecting or attempting to collect such tayes, debts, or demands. For the
amount so allowed the auditor of public accounts shall draw his warrant
npon the treasurer in favor of such officer, and the same shall be paid
vut of any money in the treasury not otherwise appropriated; but no

718 ACTS OF ASSEMBLY.

such allowance shall be made unless the board be satisfied that the office:
used due diligence in protecting and defending the interests of the Com-
monwealth in the matter touching which such allowance is asked for.

§ 417. How indemnity to auditor allowed.—If any such allowance &
applied for by the auditor, it shall be competent for the other member:
of the board to pass upon and allow the same; but the auditor shal] nx
ect as a member of said board in passing upon his own claim.

§ 418. Commissioners of sinking fund; their duties—The treasurer.
auditor of public accounts, and the second auditor shall constitute and lb
known as “the commissioners of the sinking fund,” and have the contr
and management thereof. Any two of them shall constitute a quorum.
They shall keep a regular and sufficient set of books, wherein shall be re
corded all of their proceedings, showing their receipts and disbursement-
and the condition of the fund, of which they shall make report to th
general assembly at each regular session thereof. Their books and paper:
shall be kept in the office of the second auditor and the bonds in the office
of the treasurer.

§ 419. Sinking fund, of what constituted.—The bonds of the State of
Virginia purchased prior to the thirty-first day of March, eighteen hun-
dred and seventy-five, by the commissioners of the sinking fund, whic!
was established under the act of assembly passed March thirtieth, eigt-
teen hundred and seventy-one, known as the funding act; all bonds rn
ceived prior to that date by the State on account of debts due to her, o:
on account of the disposition of her interest in any of the railroad or other
internal improvement companies since the thirtieth day of March, eigh-
teen hundred and seventy-one, the bonds received from the followinc
sources being included: From the Richmond and Danville Railroad Com-
pany, eight hundred and twelve thousand four hundred and seventeen
dollars and forty-four cents; from the Richmond and Petersburg Raii-
road Company, five hundred and thirty-one thousand two hundred an:
fifty-seven dollars and seventy cents; from the Orange and Alexandria
Railroad Company, eight hundred and seventy-four thousand six hun-
dred and fifty-seven dollars and thirty-one cents; from the Norfolk an‘
Petersburg Railroad Company, one hundred and forty-four thousan'
twenty-four dollars and forty-nine cents; from the sale of the desert tract
ef land, sixteen thousand dollars; from the Dismal Swamp Canal Com-
pany, twenty-four thousand cight hundred and thirty-nine dollars an:
ninety-eight cents; from the Richmond and Danville Railroad Company.
on account of interest, sixty-four thousand two hundred and twelve da!-
lars and ninety-cight cents: from the board of public works, on account
of claims against Selden, Withers and Company, the Chesapeake and
Ohio Canal Company. one hundred and forty thousand eight hundre!
and fifty-three dollars: also the bonds of the State in the hands of the
auditor of public accounts on the thirty-first dav of March, eighteen hun-
dred and seventy-five. which were received hy him in settlement of claims
due to the State, amounting to forty-six thousand four hundred and thir-
teen dollars and five conts:and the principal and accumulated interest of
the bonds held by the commissioners of the sinking fund, which was estat-
lished by the act of assembly passed March twenty-sixth, eighteen hundred
and fifty-three; whatever may have been realized from the claims of the

State against Selden, Withers and Company; from the Chesapeake and
Ohio Canal Company; from the Richmond and Danville Railroad Com-
pany; from dividends and interest heretofore paid by any railroad or
other internal improvement company upon stocks or bonds owned by, or
debte due, the State; from the sale or other disposition of said stocks or
bonds, except the sum of five hundred thousand dollars paid by the Nor-
folk and Western Railroad Company; whatever has been since the thirty-
first day of March, eighteen hundred and seventy-five, or may be here-
after realized from any claim of the State against the United States from
the sale, rent, or profit of any real estate ow ned by the State on the thirty-
first day of March, eighteen hundred and seventy-five; all damages which
have been since the thirty-first day of March, eighteen hundred and
seventy-five, or may hereafter be recovered by the State against default-
ing revenue collectors; the stock owned by the State in ‘and its entire
claim against the Richmond, Fredericksburg and Potomac Railroad Com-
pany, including obligations or dues on account of unpaid dividends; and
all sums paid into the treasury to the credit of the sinking fund under
the act of March thirty-first, cighteen hundred and seventy-five, shall
constitute the sinking fund of the State.

§ 420. To be used in buying bonds.—Any money in the treasury to the
credit of the sinking fund, and any money which may be derived from
the sale of any stocks and securities now held in the treasury of Virginia,
shall annually, or as often as occasion may require, be applied by the com-
missioners to the purchase, at market rates (not, however, exceeding the
par value), of bonds issued under the act of February fourteenth, eigh-
teen hundred and eighty-two, or under the act of February twentieth,
eighteen hundred and ninety-two.

§ 421. How amount to be expended is ascertained ; bonds to be bought

by sealed bids.—It shal] he the duty of the commissioners of the sinking
fund to meet on the second Tuesday of February, eighteen hundred and
ninety-four, and on the first Monday in every month thereafter, to deter-
mine at each of such meetings what, if any, sum can be spared from the
treasury, after making ample allowances for all the expenses of the gov-
ernment and the public schools, and for the payment of the interest upon
the bonds of the State issued under the act approved February fourteenth,
eighteen hundred and cighty-two, and under the act approved: February
twentieth, eighteen hundred and ninety-two, and upon the certificates
issued under the act approved February twenty-third, eighteen hundred
and ninety-two. If it he determined by said commissioners that there be
a surplus in the treasury, after making due allowance as aforesaid, for
the government and school expenses, and interest upon said bonds and
certificates so issued, thev shall certify to the treasurer of the Common-
wealth that such sum, not exceding one hundred thousand dollars in each
month, as they may so determine, may be drawn from the treasury and
invested as herein provided : except that at the October meeting or first.
meeting of said board after the close of cach fiseal vear, the said “board of
sinking fund commissioners may, in their discretion, draw from the treas-
ury for the purchase of State bonds not exceeding sixty per centum of
whatever balance there may he at that time in the treasury of the State,
and not specifically or otherwise appropriated.
720 ACTS OF ASSEMBLY.

The commissioners of the sinking fund shall, immediately after their
first meeting, or any stbsequent meeting, at which they may determine
to buy bonds, advertise in at least one daily newspaper published in the
cities of Richmond, New York, and Baltimore, that they will receive
offers for the sale of such amount of the bonds issued under the act of
February fourteenth, eighteen hundred and eighty-two, or February
twentieth, eighteer hundred and ninety-two, as in their judgment the
sum placed to their credit will enable them to purchase, and that such
offers may be made up to and including the nineteenth day of the current
month. .

All such offers shall be made in writing; shall be sealed, and shall be
opened by the said commissioners, or a majority of them, on the twentieth
ot the month, at noon, in the presence of the governor of the Common-
wealth, or in the event of his absence, ‘in the presence of the secretary of
the Conunonwealth.

Tf the twentieth of the month falls on Sunday or a legal holiday, the
said offers shall be opened on the next dav which is not a legal holiday:
provided, that the said commissioners shall have authority to reject any
and all bids made from month to month: provided, that the said com-
missioners may invest in the purchas: of said bonds the aggregate funds
ascertained by them in the mode prescribed by scction four hundred and
twenty of this act to be used for that purpose whenever said commission-
ers deem it to the interest of the State.

All bonds purchased under this section shall be listed on the minutes
of the board, which list shall show the nuinber and the denomination of
each bond purchased in each month. All bonds purchased under this act
shall at once be converted into registered bonds in the name of the com-
mnissioners of the sinking fund. which. when so converted, shall be de-
livered to the treasurer, who shall label and file the saine in his office for
safekeeping. No coupon bond shall be purehased under this act unless
all the unmatured interest coupons shall be attached thereto, and the
sonds so purchased shall be held as security for the payment of the interest
on the public debt of the State as it shall or may have accrued when funded
under the acts aforesaid, and the same may be resold when necessary by
the commnissioners of the sinking fund, and the proceeds of such resale
be used whenever the finances of the State may so require: provided,
that said commissioners inay, in their discretion, from time to time, when
money is required to pay interest upon the debt aforesaid, borrow money
upon temporary loans for such purpose and deposit such bonds as they
have acquired under this act as collateral for such temporary loans.

§$ 422. How moneys of sinking fund paid into treasury; how paid
out.—All moneys belonging to the sinking fund shall be paid into the
freasury on the warrant of the second auditor, and shall be paid out in
like manner when authorized by the commissoners,

§ 423. Treasurers to receive and pay monevs of sinking fund; to re-
port to general assembly.—'The treasurer shall receive and pay the moneys
belonging to the sinking fund as hereinbefore provided. He shall keep
a distinct account of the same, and report to each session of the general
assembly the aggregate receipts and disbursements on account thereof up
to the first of October or first of January, as the case may be, preceding
each session of the general assembly, and the balance remaining unex-
pended at such time.

§ 424. To keop register of coupons.—The treasurer shall continue to
keep registers of all coupons issued since July first, eighteen hundred and
seventy-one, according to class, denomination, number, and time when
due. In the column of “time when due,” and opposite the “number”
thereof, he shall have posted the number of the warrant and its date of
issue for the payment of every coupon which is redeemed or paid; and
he shall cause to be cancelled the columns of “time when due” after the
date of a transfer of a coupon bond into some other class or denomina-
tion of bonds, and prior to the issue of ncw numbers of coupon bonds.

§ 425. Coupons to be compared with register monthly.—He shall com-
pare monthly the coupons cut off in his office with the coupon register and
the orders for transfer from the second auditor's office, in conjunction
with the second auditor and the secretary of the Commonwealth. Cou-
pons, after having been thus compared and cancelled on the coupon regis-
ter and found correct, may be destroyed.

8426. Treasurer to cancel coupons received for taxes.—The treasurer
shall cancel all coupons which may be paid or received in payment of
(axes, debts, or demands of the State by causing three holes to be punched
through the same in some uniform mode, with an instrument to be pro-
vided by the governor.

$427. Registry of bonds and certificates of debt-—The bonds and
certificates of debt now registered in the second auditor's office shall con-
tinue registered therein. In the book containing such registry reference
shall be made to the special act authorizing the loan,

$428. How bonds and certificates signed and paid.—Every such bond
and certificate shall be signed by the treasurer and countersigned by the
second auditor. All payments on account thercof shall be made upon the
warrants of the second auditor.

$429. Who deemed owner of pond or certificate—The person appear-
ing on the books of the office in which any bond or certificate is registered
as the owner thereof shall be deemed the owner as it regards the Common-
wealth, so as to make valid all payments by the Commonwealth on ac?
count thereof to sueh person, or lus personal representative, made before
a transfer of the bond or certificate on the books of the said office.

$430. How bonds and certificates sold, et cetera.—But if the person so
appearing on the books as owner shall, bona fide, and for valuable consid-
cration, sell, pledge, or otherwise dispose of such bond or certificate to
another, and deliver to him the bond or certificate, with a power of attor-
ney authorizing the transfer thereof to him on the hooks of the proper
officer, the title of the former in the said bond or certificate (both at law
and in equity) shall vest in the latter for the whole amount of the bond
or certificate, or so much thercof as nay be necessary to effect the pur-

pose of the sale, pledge. or other disposition ; and it shall so vest, not only
as between the parties themselves, but also as against the creditors of and
subsequent purchasers from the former, subject to the preceding section.

8431 How transferred on books of office—Upon the delivery of the
said bond or certificate at the office in which it is registered, a transfer
may be made on the books of the said office, either of the whole amount
or of any part thereof, by the person appearing on the said books as the
owner or by another having a power of attorney from him, duly authen-
ticated, authorizing such transfer. Upon a transfer, the former bond or
certificate shall be cancelled, and one or more new bonds or certificates
shall be issued, not exceeding together the amount of that cancelled. But
no transfer shall be made on the said books after the fifteenth day of De-
cember or fifteenth day of June until the first day of January or the
first day of July.

§ 432. Auditor may cancel old bonds or certificates and issue new.—
The auditor, in whose office any bond or certificate is registered, shall,
when applied to, cancel it and issue new bonds or certificates, not exeeed-
ing together the amount of the former.

§ 433. Where cancelled bonds and certificates to remain; how new
bonds and certificates issucd and regisitered.—Every cancelled bond or
certificate shall remain filed in the treasurer’s office. Every new bond
or certificate shall be registered, signed, and countersigned like the
former bond or certificate.

§ 434. How lost bond or certificate renewed.—When any bond or cer-
tificate shall be lost by the holder thereof, he may produce to the auditor,
in whose office the said bond or certificate is registered, proof of his hav-
ing advertised the same once a week for four successive weeks in a news-
paper ; file in the office of the said auditor an affidavit, setting forth the
time, place, and circumstance of the loss, and execute a bond to the
Commonwealth, with one or more sureties, approved by the said auditor,
with condition to indemnify all persons against any loss in consequence
of issuing a new bond or certificate in place of the one so lost; and there-
upon the said auditor may issue a new bond or certificate and register the
same.

§ 435. Executive may effect temporary loans.—The executive shall
have authority to raise, from time to time, by temporary loans, so much
as may be needed to supply the wants of the tréasury, to be refunded by
warrants of the auditor of public accounts within twelve months from
the time when said loans are made.

§ 436. Board of education to keep certificates of West Virginia’s share
of the debt.—The certificates given for the third of the bonds set apart
for West Virginia’s portion of the debt held by the literarv funds shall
be safely deposited and kept by the board of education, subject. to the
provisions of any settlement which may he had between this State and
the State of West Virginia in refcrence to the public debt of Virginia
ereated prior to the formation of the State of West Virginia.

2. All acts and parts of acts in conflict or inconsistent with this act
or any part thereof are hereby repealed.

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