Chap. 211.—An ACT to repeal an act entitled an act to anticipate by counties,
or otherwise, the construction of the State highway system, approved March
15, 1920. as amended and re-enacted by an act entitled an act to amend and
re-enact an act entitled an act to anticipate by counties or otherwise the con-
struction of the State highway system, approved March 15, 1920, approved
March 21, 1924; to provide for the issue and sale of certificates of indebted-
ness of the Commonwealth of Virginia to repay the sums advanced to the
State under the provisions of the aforesaid acts and to provide a sinking
fund for the payment of the interest on the said certificates of indebtedness
and the principal thereof at maturity. [S B 161]

Approved March 19, 1926.

Section 1. Be it enacted by the general assembly of Virginia,
That an act entitled an act to anticipate by counties, or otherwise,
the construction of the State highway system, approved March
fifteenth, nineteen hundred and twenty, as amended and re-enacted
by an act entitled an act to amend and re-enact an act entitled an act
to anticipate by counties or otherwise, the construction of the State
highway system, approved March fifteenth, nineteen hundred and
twenty, approved March twenty-first, nineteen hundred and twenty-
four, be, and the same is hereby repealed; provided, however, the
State highway commission is hereby authorized to carry out agree-
ments existing under the aforesaid acts as of the date this act shall
become effective, if the funds under such agreements have then been.
received by the State highway commission.

Section 2. The commissioners of the sinking fund, a majority of
whom may act, are hereby authorized, with the approval of the
governor, to issue and sell certificates of indebtedness in the name of
and on behalf of the Commonwealth of Virginia in an amount equiva-
lent to the sum heretofore advanced to the Commonwealth of Vir-
ginia, under the provisions of an act entitled an act to anticipate by
counties, or otherwise, the construction of the State highway system,
approved March fifteenth, nineteen hundred and twenty, and an act
entitled an act to amend and re-enact an act entitled an act to antici-
pate by counties or otherwise, the construction of the State highway
system, approved March fifteenth, nineteen hundred and twenty,
approved March twenty-first, nineteen hundred and twenty-four,
and to be hereafter advanced ‘to and received by the State highway
commission upon agreements in effect when this act becomes effective,
and upon agreements authorized in section fifteen of this act, but not
to exceed the sum of seven million’ five hundred thousand dollars.

Section 3. The said certificates of indebtedness shall be dated
July first, nineteen hundred and twenty-six, and shall bear interest
payable semi-annually January first and July first of each year, at a
rate to be fixed by the commissioners of the sinking fund with the
approval of the governor, but not exceeding four and one-half per
centum per annum. The said certificates shall be issued in denomina-
tions of one hundred dollars, five hundred dollars, one thousand
dollars, five thousand dollars and ten thousand dollars. The com-
missioners of the sinking fund with the approval of the governor may
determine the number of said certificates to be issued in the several
denominations as hereinbefore set out. The said certificates of in-
debtedness shall be issued with serial maturities as follows:

One million dollars maturing July first, nineteen hundred anc
thirty.

One million dollars maturing July first, nineteen hundred and
thirty-one.

One million dollars maturing July first, nineteen hundred and
thirty-two.

One million dollars maturing July first, nineteen hundred and
thirty-three.

~ One million dollars maturing July first, nineteen hundred and
thirty-four.
One million dollars maturing July first, nineteen hundred) and
thirty-five.
One million dollars maturing July first, nineteen hundred and
thirty-six.

The balance thereof maturing July first, nineteen hundred and
thirty-seven.

The commissioners of the sinking fund with the approval of the
governor, shall from time to time, sell the said certificates of indebted-
ness for cash at such prices not less than par, plus accrued interest, as
may be approved by the commissioners of the sinking fund and the
governor; provided, however, that if any county, district, city, town,
private corporation or person who has advanced or shall advance
money to the Commonwealth of Virginia under the provisions of the
aforesaid act approved March fifteenth, nineteen hundred and
twenty (chapter one hundred and eighty-four, acts of assembly, nine-
teen hundred and twenty) or the aforesaid act approved March
twenty-first, nineteen hundred and twenty-four (chapter four hundred
and forty-seven, acts of assembly, nineteen hundred and twenty-four),
or this act, shall elect to receive the equivalent of the sum or sums so
advanced in the certificates of indebtedness issued under the pro-
visions of this act instead of cash from the proceeds of the sale of such
certificates of indebtedness, the commissioners of the sinking fund,
with the approval of the governor, may deliver to such county, dis-
trict, city, town, private corporation or person, certificates of indebt-
edness issued under the provisions of this act for the unpaid amount
of the sum or sums so advanced after charging against such county,
district, city, town, private corporation or person, interest at the same
rate borne by such certificates of indebtedness for the remaining part
of four years from the date the said sum or sums of money were re-
ceived by the State. Any agreements signed by or on behalf of the
said State highway commission under the provisions of the two afore-
said acts to-wit, the act approved March fifteen, nineteen hundred
and twenty (chapter one hundred and eighty-four, acts of assembly,
nineteen hundred and twenty), and the act approved March twenty-
first, nineteen hundred and twenty-four (chapter four hundred and
forty-seven, acts of assembly, nineteen hundred and twenty-four),
shall be returned to and cancelled by the commissioners of the sinking
fund before the county, district, city, town, private corporation or
person who advanced such sum or sums of money or any one claiming
by, through or under them, or any of them, shall be entitled to receive
any certificates of indebtedness, or money in return for such sum or
sums so advanced.

Section 4. The sums of money received from the sale of the cer-
tificates of indebtedness issued and sold under the provisions of this
act shall be paid into the State treasury by the commissioners of the
sinking fund to the credit of a special fund to be designated, the State
highway svstem certificates of indebtedness fund, as the sinking fund
is now paid in, and paid out from said fund as the sinking fund is now
paid out.

When certificates of indebtedness have been sold as hereinbefore
provided, the commissioners of the sinking fund from the proceeds of
sale paid into the State treasury to the special fund hereinbefore pro-
vided, shall make payment to such counties, districts, cities, towns,
private corporations or persons, who have advanced or shall advance
any sum or sums of money to the Commonwealth of Virginia under
the provisions of the two acts aforesaid or of this act as may present
through and with the approval of the chairman of the highway com-
mission for cancellation all agreements executed by or on behalf of the
State highway commission with said parties respectively under the
provisions of said acts, which said payments shall be the amounts not
theretofore repaid of such sum or sums of money so advanced, less a
deduction in each case of an amount equivalent to interest for the
remaining part of four years from the date the said sum or sums of
money were received by the State at the same rate of interest as pro-
vided in the certificates of indebtedness issued hereunder, provided,
however, that the commissioners of the sinking fund shall cause all
moneys in the special fund, hereinbefore created, in excess of the
amount necessary to repay the sums advanced to the State under the
provisions of the aforesaid acts of the general assembly of nineteen
hundred and twenty, and nineteen hundred and twenty-four, to be
transferred by the State treasurer to the State highway system cer-
tificates of indebtedness sinking fund hereinafter in this act provided,
and used for the payment of the principal and interest of the certifi-
cates of indebtedness issued under the provisions of this act, and for
no other purpose. Such transfer shall be made by the State treasurer
upon certificate of the second auditor, issued under the direction of the
commissioners of the sinking fund.

Section 5. The certificates of indebtedness issued under the pro-
visions of this act shall be engraved and shall be signed on behalf of
the Commonwealth of Virginia by the State treasurer and second
auditor. The interest coupons on such of the certificates as may be
issued in coupon form, shall be signed by the State treasurer, whose
signature upon such coupons may be his engraved facsimile signature.

These certificates shall be engraved by a company of recognized
standing, who shall either permit the plates to be the property of the
Commonwealth of Virginia, or shall, in the presence of the second
auditor and the State treasurer, destroy the said plates.

Section 6. The second auditor and State treasurer shall list all
coupon certificates of indebtedness issued under this act separately
in books provided for the purpose, in each case giving the date, num-
ber, date of issue, maturity and amount of each certificate of indebt-
edness issued, and shall list all registered certificates as provided in
the next section of this act.

Section 7. The said certificates may be issued in either registered
or coupon form, as the commissioners of the sinking fund, with the
approval of the governor may determine. _ .

Certificates of indebtedness issued in registered form shall be
registered as to principal and interest in the office of the second auditor
and the State treasurer, who shall register in books provided for that
purpose, the number of each registered certificate issued under the
provisions of this act, the date and the date of issue thereof, its
maturity, the amount of each eertificate and the interest payment
dates thereof, and the name and address of the registered owner.
Certificates issued in registered form shall be transferable only by the
registered owner thereof or his duly authorized attorney in fact, upon
presentation of such certificates at the office of the second auditor.
Interest on such registered certificates shall be payable semi-annually
January first and July first of each year by warrants as interest on
the public debt is paid, and out of the sinking fund hereinafter pro-
vided. The principal of such registered certificates shall be paid as
they severally mature upon presentation and surrender of such cer-
tificates on or after the maturity dates thereof, at the office of the
second auditor by the registered owner or his duly authorized attorney
in fact, by warrants of the second auditor payable to the registered
owner or his duly authorized attorney in fact, drawn on the State
treasurer, which said warrants shall be paid by the State treasurer
out of the sinking fund hereinafter provided.

Section 8. The coupon certificates of indebtedness shall have
afhxed to them coupons in proper amounts representing interest to
become due on such certificates payable semi-annually January first
and July first of each year. The principal and interest of such coupon
certificates shall be payable to the bearer upon presentation and sur-
render of the principal certificates of indebtedness or the interest
coupons, as the case may be, as they severally mature, at the office
of the second auditor on or after their respective maturity dates,
such payments to be made by warrants of the second auditor drawn
on the State treasurer to the order of the bearer of such payee as may
be designated by him, which said warrants shall be paid by the State
treasurer out of the sinking fund hereinafter provided.

Both the principal and interest of the certificates of indebtedness
issued under the provisions of this act shall be payable in gold coin of
the United States of the present standard of weight and fineness.

Section 9. Registered certificates issued hereunder shall be con-
vertible into coupon certificates of equal amount, upon presentation
and surrender of such registered certificates at the office of the second
auditor by the registered owner thereof, or his duly authorized attor-
ney in fact, and the coupon certificates shall be convertible into
registered certificates of equal amount upon such presentation and
surrender of such coupon certificates with all unmatured interest
coupons attached. The conversion of registered certificates into
coupon certificates and of coupon certificates into ‘registered certi-
ficates shall be done as at present with reference to the public debt,
and the provisions of sections twenty-six hundred and thirty-four,
twenty-six hundred and thirty-five, twenty-six hundred and thirty-
six, twenty-six hundred and thirty-seven, twenty-six hundred and
thirty-eight, and twenty-six hundred and thirty-nine of the Code of
Virginia shall be applicable, so far as not inconsistent with the pro-
visions of this act, to the certificates of indebtedness issued hereunder.

Section 10. All certificates of indebtedness issued under the pro-
visions of this act shall be exempt from taxation by the Common-
wealth of Virginia and by every county, district, or municipality
thereof, which fact shall appear on the face of these certificates as a
part of the contract with the holder thereof.
Section 11. Except insofar as is prescribed in this act the com-
missioners of the sinking fund, with the approval of the governor,
shall determine the forms of the certificates of indebtedness provided
for in this act and of the coupons to be attached to the coupon cer-
tificates. The commissioners of the sinking fund and the governor
are authorized to do any and all things necessary in carrying out the
provisions of this act and in the issue and sale of the certificates
herein authorized. All expenses incurred in carrying into effect the
provisions of this act, shall be paid out of the State highway system
construction fund upon warrant of the auditor of public accounts
drawn on the State treasurer which said warrants shall be issued upon
certificates of the chairman of the highway commission.

Section 12. The State treasurer shall be the custodian of all
unsold certificates of indebtedness issued pursuant to the provisions
of this act and of the plates from which such certificates and the
interest coupons are engraved, if they be not destroyed as herein-
before provided, and also of such extra forms of such certificates and
interest coupons as the commissioners of the sinking fund, with the
approval of the governor, may deem necessary to provide to take
care of the provisions of section nine of this act.

Section 13. The full faith and credit and taxing power of the
Commonwealth of Virginia are hereby pledged to secure the payment
of the principal and interest of the certificates of indebtedness issued
under the provisions of this act, but notwithstanding the pledge of
the full faith and credit and taxing power of the Commonwealth of
Virginia to secure the payments of the principal and interest of the
certificates of indebtedness issued under the provisions of this act,
there is hereby created a sinking fund for the payment of the prin-
cipal and interest of the certificates of indebtedness issued hereunder
as follows: There shall be set aside each year commencing in the
calendar year nineteen hundred and twenty-six, as in the case of the
public debt, from the proceeds in the State treasury of the motor
vehicle fuel tax and the motor vehicle license tax, provided in chapter
ninety of the Code, as amended, or either, a sum sufficient to pay the
interest on the certificates of indebtedness issued hereunder, as the
said interest matures up to and including the interest maturing at
the interest payment period next before July first, nineteen hundred
and thirty, provided, however, that the sums paid into and remaining
in the sinking fund as hereinbefore provided, in section four of this
act, shall be applied to the payment of the interest in order of its
maturity, upon the certificates of indebtedness issued hereunder.
Each year commencing with the year nineteen hundred and thirty
and continuing until all the certificates of indebtedness issued here-
under have matured there shall be set aside as in the case of the
public debt, from the. proceeds in the State treasury of the said motor
vehicle fuel tax and the said motor vehicle license tax a sum sufficient
to pay the principal of the certificates of indebtedness maturing
during the said year, and the interest on all the outstanding certifi-
cates issued under the provisions of this act. The funds transferred
to this sinking fund under provisions of section four of this act and
the funds set aside under the provisions of this section of this act shall
constitute a sinking fund to be known as the State highway system
certificate of indebtedness sinking fund, and shall be used for the
purpose of paying the principal and interest of the certificates of
indebtedness issued hereunder and for no other purpose.

Section 14. The commissioners of the sinking fund, with the
approval of the governor, are hereby authorized to incorporate as a
part of the certificates of indebtedness to be issued under the pro-
visions of this act, an agreement for the benefit of the holders of such
certificates that the tax upon motor vehicle fuels set aside for the con-
struction or reconstruction of roads in the State highway system and
the State motor vehicle license tax, will not, while any of the certifi-
cates issued under the provisions of this act, are unmatured and
unpaid be reduced to such an extent as to prevent the amount of such
taxes collectible each year and available for the sinking fund herein-
before provided over and above the cost of collection thereof from
being a sum equal at least to the interest upon such unmatured and
unpaid certificates of indebtedness and the principal thereof maturing
within one year.

Section 15. If any county or magisterial district in this State has
by popular vote in an election held prior to the approval of this act
authorized the issue of county or magisterial district bonds to be sold
to raise money to advance to the State highway commission under
the provisions of an act entitled an act to amend and re-enact an act
entitled an act to anticipate by counties or otherwise, the construction
of the State highway system, approved March fifteenth, nineteen
hundred and twenty, approved March twenty-first, nineteen hundred
and twenty-four, hereinbefore in this act repealed, the State highway
commission shall have authority to enter into agreements with such
counties or magisterial districts for receiving the said money, for
expending the same, and for the repayment thereof, subject to the
provisions of the aforesaid act, approved March twenty-first, nine-
teen hundred and twenty-four, and of this act, provided that such
money shall be received by the State highway commission prior to
the date this act shall become effective, and provided, further, that
the State highway commission shall not, in entering into the agree-
ments authorized in this section of this act, be limited to the amounts
specified in the aforesaid act, approved March twenty-first, nineteen
hundred and twenty-four.