Chap. 366.—An ACT to authorize the council of the town of Salem, in Roanoke
county, to issue new bonds of said town sufficient to retire the bonds issued
for the construction of water-works, and to transfer the lien of the deed of
trust on said water-works, its franchises, etc., to the bonds to be issued under
this act.

Approved February 18, 1896.

Whereas the town of Salem, in the county of Roanoke, under and
by virtue of the authority given it by the act of the general assembly
of Virginia, approved January twelfth, eighteen hundred and eighty-
six, did issue certain bonds of said town, bearing interest at the
rate of six 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, with the privilege to said town to pay
the same in ten years from said date, and as additional security for
the prompt payment of said semi-annual installments of interest
and of the said principal when they should respectively fall due,
transferred to the holders of said bonds the lien of a certain deed of
trust executed on the twenty-first day of April, eighteen hundred
and seventy,six, to John M. Evans as trustee, by which the water-
works of said town, its franchises and so forth was conveyed to
secure the holders of the bonds set forth in said deed in the pay-
ment of the interest and principal thereof; and

Whereas the said town is desirous of retiring the bonds issued
under the said act of January twelfth, eighteen hundred and eighty-
six; therefore, |

1. Be it enacted by the general assembly of Virginia, That the
council of said town of Salem, in the county of Roanoke, 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 denom!-
nations as to said council may seem best, bearing interest at a rate
not exceeding six per centum per annum, as may be necessary to
retire said bonds issued under said act, approved January twelfth,
eighteen hundred and eighty-six, or so much thereof as may be
unpaid, the bonds to be issued under this act to be exempt from
taxation for town purposes, the interest thereon to be paid semi-
annually, the principal to be paid in twenty years from their date,
with the privilege to said town to pay the said principal in ten years
from their date. Asa further security for the prompt payment of
semi-annual installments of interest and of said principal when they
severally fall due under this act, it is further enacted that the hold-
ers of the bonds to be issued under this act shall be substituted to
all the rights of the holders of the bonds to be retired hereunder.
The said deed of trust of April twenty-first, eighteen hundred and
seventy-six, and the lien of said deed of trust be transferred to and
shall inure to the benefit of the bonds to be issued under this act
when the former bonds are retired, and the statute of limitations and
every presumption of payment as to said deed of trust shall begin
to run from the date of the bonds issued hereunder.

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