CHAP. 32.—An ACT to amend and re-enact section 4 of chapter 5 of an
act entitled an act concerning corporations, which became a law May

21, 1903.
Approved February 14, 1912.

1. Be it enacted by the general assembly of Virginia, That
section four of chapter five of an act entitled an act concerning
corporations, which became a law May twenty-first, nineteen
hundred and three, be amended and re-enacted so as to read as
follows:

$4. No corporation created under this act shall create any
bonded indebtedness, or increase its bonded indebtedness, to be
secured by lien on any of its property or franchises, until the
creation of such bonded indebtedness or the increase of such
honded indebtedness be sanctioned by a vote in person or bv
proxy of a majority in amount of all the stockholders having
voting power, present or represented and voting, at a meeting
of the stockholders called by the board of directors of the cor-
poration for that purpose, of which meeting notice by publica-
tion at least six times a week, for two successive weeks prior
to such meeting, in some newspaper published in or. near the
place where its principal office is located, or notice in writing
must be given to each stockholder of record by serving the same
on him personally, or by mailing to him addressed to the post-
office nearest his place of residence, as it appears on the stock
books of the corporation, at least ten days prior to such meeting;
and in such notice must be stated the time and place of the meet-
ing and its object. If at such meeting a majority in amount of
all the stockholders present, or represented and voting, shall
vote in favor of creating such bonded indebtedness or of in-
creasing such bonded indebtedness, bonds of such corporation
may then be issued to the amount authorized by the vote of the
stockholders, as hereinbefore provided, and the payment thereof,
with the interest to accrue thereon, may be secured in such man-
ner and upon such terms as the stockholders at such meeting
may, by resolution prescribe: provided, however, that no such
bonds shall be issued until after full compliance with the pro-
visions of article one hundred and sixty-seven of the Constitu-
tion of this State, so far as applicable; and in default thereof
any such corporation shall be subject to all the penalties pre-
scribed in this act against corporations for issuing bonds or
stock without first having complied with the provisions of said
article of the Constitution: provided, further, that nothing in
this act shall apply to any note or bond given for the deferred
instalments of the purchase price of property and secured by
deeds of trust on the property, nor to any negotiable notes se-
cured by deed of trust on property given by any corporation deal-
ing in real estate, taken in the usual course of business, nor to
any note or bond given for the deferred instalments-of the pur-
chase price of rolling stock leased or purchased by railroad
corporations.