Chap. 234.—An ACT to amend and re-enact section 7 of an act entitled an act
to provide for the issuance of county bonds for constructing and operating
water supply systems in the magisterial districts of certain counties of the
~tate; to provide for the payment of the interest thereon and the principal
hiereof at maturity, and to provide for the construction and operation of
uch water supply systems, approved March 24, 1926. [S B 346]

Approved March 16, 1928

Be it enacted by the general assembly of Virginia, That sec-
tion seven of an act entitled an act to provide for the issuance of
county bonds for constructing and operating water supply systems
in the magisterial districts of certain counties of the State; to pro-
vide for the payment of the interest thereon and the principal there-
of at maturity, and to provide for the construction and operation
of such water supply system, approved March twenty-fourth, nine-
teen hundred and twenty-six, be amended and re-enacted so as to
read as follows:

Section 7. The board of supervisors of the said county shall
have authority to construct, maintain and operate for and on behalf
of the said district or districts public water supply system in ac-
cordance with such rules and regulations as may be adopted by the
said board, and to fix the rates at which water shall be supplied or
furnished to consumers. The net revenues derived from the opera-
tion of such water supply systems shall be set apart by the said
board to pay the interest on the bonds so issued or to be issued,
and create a sinking fund to redeem the principal thereof at
maturity. The board of supervisors is hereby authorized and em-
powered to apply any part or all of said sinking fund to the pay-
ment, if redeemable by their terms, or to the purchase of any of
said bonds, at any time, and all bonds so paid off or purchased by
said board of supervisors, shall be immediately cancelled, and shall
be reissued, and the board of supervisors is authorized and em-
powered to lend out, upon real estate security, the loan not to
exceed fifty per centum of the assessed value of such real estate,
or deposit in bank at interest all accumulations of money to the
credit of said sinking fund and to collect and reinvest the same and
the interest accruing thereon from time to time, so often as may be
necessary or expedient, until such bonds become subject to call;
provided, that no money to credit of said sinking fund shall be
loaned out or deposited or invested by the said board of super-
visors, unless said loan, deposit or investment shall be first ap-
proved by the circuit court of said county, or the judge thereof in
vacation, and the form of the security be examined and approved
by the Commonwealth’s attorney of said county, which approval
shall be entered of record in the order book of said court.

The treasurer shall not be hable for any funds herein provided
for that shall be lost while on deposit made by order of the board
of supervisors with any bank or banks, or when invested in any
real estate security as provided herein, but the board of supervisors
may require of any such bank a bond, with corporate or other
surety, to secure such deposit.

The board of supervisors shall have authority to accept negoti-
able notes or bonds in payment for water connection charges.
Whenever any such note or bond is accepted by said board in pay-
ment for such charges, such note or bond shall be listed by the
treasurer of the county in a special book provided by the board of
supervisors for that purpose, which list shall set forth the name of
the maker, the date thereof, the amount due, and when and how
payable, and shall be indexed in the name of the maker in the gen-
eral index for deeds in the clerk’s office of the circuit court of the
county. From and after the time such note or bond has been so
listed and indexed, it shall be a lien upon and against the real
estate upon which the water connection was made.

For the purpose of obtaining funds for maintaining the water
system and making additional connections, the board of supervisors
shall have authority to borrow money from time to time not in
excess of the unpaid balances due upon notes given in payment for
water connection charges in the hands of the board, and to assign
and use such notes or bonds as collateral security for the payment
of the money so borrowed.