Chap. 18.—An ACT to authorize the council of the town of Salem to issue
new bonds of said town, sufficient to retire the bonds issued for the con-
struction of water-works,

Approved January 12, 1886.

Whereas the town of Salem, in the county of Roanoke, on
the first day of April, eighteen hundred and seventy-six, issued
its bonds, amounting in the aggregate to the sum of thirteen
thousand dollars, for the purpose of constructing the water-works
of said town, bearing interest at the rate of eight per centum per
annum, payable semi-annually on the first days of April-and
October of each year, the principal payable in twenty years
from their date, or in ten years from their date at the election
of said town, and as an additional security executed a deed of
trust upon said water-works, its franchises, and so forth, to John
M. Evans, as trustee, bearing date the twenty-first day of April,
eighteen hundred and seventy-six, recorded in the clerk's office
of the county court of said county, Deed-book I, page one hun-
dred and twenty-five, to secure the holders of said bonds in the
prompt payment of the said semi-annual instalments of interest,
and of the principal sum when due; and whereas the town is
desirous of retiring said bonds at the expiration of the term of
ten years from their date: therefore

1. Be it resolved by the general assembly of Virginia, That
the council of said town be and it is hereby authorized and
empowered to issue a sufficient number of the bonds of said
town, either coupon or registered, of such denominations as to
it may seem best, bearing interest at a rate not exceeding six
per centum per annum, as may be necessary to retire said eight
per centum bonds; the bonds to be issued under this act
to-be exempt from taxation for town purposes, and the interest
to be paid semi-annually, and the prineipa’ to be paid in twenty
years from their date, with privilege to said town to pay said
principal in ten years from said date. As a further security for
the prompt payment of the semi-annual instalments of interest
and of the said principal when they fall due, it is farther
enacted that the holders of the bonds to be issued under this
act be substituted to all the rights the holders of the eight per
centum bonds have under the deed of trust of April twenty-
first, eighteen hundred and seventy-six, as the said eight per
centum Fonds are retired; and the lien of said deed of trust be
transferred to and shall enure to the benefit of the bonds to be
issued under this act when said eight per centum bonds are
retired.

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