Chap. 23.—An ACT to authorize the council of the town of Covington, in
the county of Alleghany, to borrow money for the purpose of purchasing.
erecting, constructing, and maintaining a system of water-works for saiu
town, and for the purpose of constructing and maintaining sewerage for
said town. »

Approved February 2, 1901.

1. Be it enacted by the general assembly of Virginia, That the coun.
cil of the town of Covington, in Alleghany county be, and it is, hereby
authorized to borrow for said town a sum of money not exceeding the
sum of thirty thousand dollars by the issue and sale of bonds of the said
town of Covington, for the purpose of purchasing, constructing, crect-
ing and maintaining a system of water-works for said town, and for the
purpose of constructing and maintaining sewerage for said town.

2. The said bonds shall be coupon bonds of the denomination of one
thousand dollars, numbered from one to thirty, inclusive, and shall bear
such a rate of interest, not exceeding five per centum per annum, as may
be determined upon by the council, the coupons of said bonds to be re-
ceivable for all taxes and levies due said town. The principal of said
bonds shall be payable in forty years from their date, or, at the option
of the council of said town, at any time after the expiration of ten vears
from the date of the issuance of the first of said bonds. After the expira-
tion of ten years from the date of the issuance of the first of said bonds.
the council of said town shall pay off and discharge at least one of said
bonds each year until all of said bonds are paid off and discharged, the
said bonds to be paid off in the inverse order of their issuance; and the
council shall levy and collect such tax as shall he necessary to pay tha
yearly interest on the said bonds, and after the expiration of ten years
from the date of the issuance of the first of said bonds, shall levy and col-
lect such tax as will be necessary to pay the vearly interest on all of said
honds outstanding, and to redeem at least one of said bonds each vear
as aforesaid. The interest on said bonds shall be payable semi-annually.

3. The bonds issued under this act shall be signed by the mavor and
secretary of said town, and shall not be sold at less than par. The said
bonds may be issued at such times and in such amounts as the council
shall from time to time determine.

4. Nothing in this act shall be construed to authorize the levy or
collection by the town of a higher tax than that authorized by the char-
ter of the town; but water rents collected by the town shall not be re-
garded as taxes within the meaning of the clause in said charter limiting
the taxing power of the council.

5. Nothing in this act shall be construed to prevent the council of said
town from using any or all of the net proceeds arising from the collec-
tion of water rents, in the discharge of the interest accruing on, or the
principal of, said bonds.

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