Chap. 91.—An ACT to provide for the refunding of bonds issued under an act en-
titled “an act to ascertain and declare Virginia’s equitable share of the debt
created before and actually existing at the time of the partition of her territory
and resources, and to provide for the issuance of bonds covering the same, and
the regular and prompt payment of interest thereon,” approved February 14,
1882, by authorizing and directing the issuance and sale of $2,445,000.00 or so
much thereof as may be necessary, of bonds and/or notes of the Common-
wealth of Virginia; and to provide for the payment of the interest on such
bonds and/or notes herein provided for and the principal thereof at maturity.

[S B 94]
Approved March 3, 1932

1. Be it enacted by the general assembly of Virginia, That bonds of
the Commonwealth of Virginia of the par value of two million, four
hundred and forty-five thousand dollars, or so much thereof as may be
necessary to comply with the provisions of this act, are hereby author-
ized and directed to be issued and sold by the commissioners of the
sinking fund in the name and on behalf of the Commonwealth of Vir-
ginia, for the purpose of raising funds to refund bonds of the State
issued under the act approved February fourteenth, eighteen hundred
and eighty-two, entitled “an act to ascertain and declare Virginia’s
equitable share of the debt created before and actually existing at the
time of the partition of her territory and resources, and to provide for
the issuance of bonds covering the same, and the regular and prompt
payment of interest thereon.” ,

2. The bonds authorized and directed by this act to be issued shall
be dated the first day of July, nineteen hundred and thirty-two and
shall become due and payable in such amounts and at such time or
times as may be fixed and determined by the commissioners of the
sinking fund, with the approval of the governor, provided that such
bonds shall mature not later than thirty years from their date. They
shall bear interest payable semi-annually on January first and July
first of each year, at a rate to be fixed by the commissioners of the
sinking fund, but not exceeding five per centum per annum. They
shall be issued in such denominations as the commissioners of the sink-
ing fund may determine.

3. The said bonds may be issued in either registered or coupon
form, as the commissioners of the sinking fund may determine.

Bonds issued in registered form shall be registered as to principal
and interest in the office of the State treasurer, who shall register in
books provided for that purpose, the number of each registered bond
issued under the provisions of this act, the date and the date of issue
thereof, its maturity, the amount of each bond, and the interest pay-
ment dates thereof, and the name and address of the registered owner.
Bonds issued in registered form shall be transferable only by the regis-
tered owner thereof or his duly authorized attorney in fact, upon pre-
sentation of such bonds at the office of the State treasurer. Interest
on such registered bonds shall be payable semi-annually January first
and July first of each year at the office of the State treasurer by checks
signed by him and issued on warrants drawn by the comptroller.

The principal of such registered bonds shall be paid as they mature
upon presentation and surrender of such bonds on or after the ma-
turity date thereof, by the registered owner or his duly authorized at-
torney in fact, at the office of the State treasurer.

The State treasurer shall list all coupon bonds issued under this act
separately in books provided for the purpose, in each case giving the
date, number, date of issue, maturity, and amount of each bond and
shall list all registered bonds, as provided in the preceding part of this
section.

The coupon bonds shall have affixed to them coupons in proper
amounts representing interest to become due on such bonds payable
semi-annually January first and July first of each year. The principal
of and interest on such coupon bonds shall be payable to the bearer
upon presentation and surrender of the principal bonds or the interest
coupons, as the case may be, as they severally mature at the office’ of
the State treasurer on or after their maturity dates, such payments to
be made by checks signed by the state treasurer and issued on warrants
drawn by the comptroller.

Both the principal of and interest on the bonds issued ander’ the
provisions of this act shall be payable in gold coin of the United States
of the present standard of weight and fineness. }

4. Registered bonds issued hereunder shall be content Ate
coupon bonds of equal amount, upon presentation and surrender of
such registered bonds at the office of the treasurer by the registered
owner thereof, or his duly authorized attorney in fact, and the coupon
bonds shall be convertible into registered bonds of equal amount upon
such presentation and surrender of such. coupon bonds with all un-
matured interest coupons attached. The conversion of registered- bonds
into cbupon bonds and of coupon bonds into registered bonds 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, twenty-six hun-
dred and thirty-nine, and twenty-six hundred and two of the Code of
Virginia, shall be applicable, so far as not inconsistent with the pro-
visions of this act, to the bonds issued hereunder.

5. The bonds and coupons issued under the provisions of this act shall
be lithographed or engraved, and the bonds shall be signed, on behalf
of the Commonwealth of Virginia, by the treasurer of Virginia and the
comptroller, under the lesser seal of the Commonwealth. The interest
coupons on such bonds as may be issued in coupon form, shall bear the
facsimile signature of the State treasurer, which signature upon such
coupons may be his lithographed or engraved facsimile signature. The
said bonds and coupons may be signed by the present treasurer and
comptroller, or by their respective successors in office at the time of
signing, but no change in such signature shall be necessary by reason of
any change of said officers. The said bonds shall be lithographed or
engraved by a company of recognized standing, who shall either per-
mit the plates to be the property of the Commonwealth of Virginia, or
shall, in the presence of the comptroller and State treasurer, destroy
the said plates.

6. The State treasurer shall be the custodian of all unsold bonds
issued pursuant to the provisions of this act and of the plates from
which such bonds and the interest coupons are lithographed or en-
graved, if they be not destroyed as hereinbefore provided.

All bonds issued under the provisions of this act shall be ex-
empt from taxation by the Commonwealth of Virginia and by every
county, district, or municipality thereof, which fact shall appear on the
face of these bonds as a part of the contract with the holder thereof.

8. The full faith and credit and taxing power of the Common-
wealth of Virginia are hereby pledged to secure the payment of the
principal and interest of the bonds issued under the provisions of this
act. In order to insure the prompt payment of the interest on such
bonds as it matures, there shall be annually set aside beginning July
first, nineteen hundred and thirty-two, out of any moneys in the gen-
eral fund of the State treasury, a sum sufficient for such purpose; and
in order to create a sinking fund for the payment of the principal of
such bonds at maturity, there shall be annually set aside, beginning
July first, nineteen hundred and thirty-two, out of any moneys in the
general funds of the State treasury such an amount, as if repeated an-
nually and 1f laid out at interest, would be sufficient for the payment of
such principal when due. The moneys belonging to such sinking fund
shall be invested by the commissioners of the sinking fund in safe se-
curities at the highest rate of interest obtainable, and all interest re-
ceived on such investments shall become a part of the sinking fund.
When such bonds mature, they shall be paid by the commissioners of
the sinking fund out of the sinking fund provided for that purpose.
All moneys disbursed by the commissioners of the sinking fund under
this act shall be paid out by the State treasurer on warrants of the
comptroller.

9. The commissioners of the sinking fund shall sell the bonds is-
sued under the provisions of this act, for cash at such prices not less
than par, as may be approved by them. The sums of money received
from the sale of bonds issued and sold under the provisions of this act
shall be paid into the State treasury by the commissioners of the sink-
ing fund for credit to the sinking fund for bonds issued under the act
approved February fourteen, eighteen hundred and eighty-two, here-
inbefore referred to in section one of this act. The commissioners of
the sinking fund shall make and keep a record of all bonds issued under
the said act approved February fourteenth, eighteen hundred and
eighty-two, surrendered to them, and shall cancel all such bonds, and
out of the proceeds derived from the sale of the bonds issued under this
act shall pay the par value of the bonds so surrendered.

10. At any time after the issuance of the bonds herein provided
for, has been authorized by the commissioners of the sinking fund and
before the sale of said bonds, the commissioners of the sinking fund
may anticipate the receipt of the proceeds to be derived from the sale
of said bonds by issuing and selling negotiable notes of the Common-
wealth of Virginia, in coupon or registered form, bearing interest at a
rate not exceeding six per centum per annum and maturing not later
than two years from their date and all other provisions of this act ap-
plicable to bonds herein authorized to be issued, shall apply to such
notes. Such notes may be renewed or refunded from time to time by
the issuance of refunding notes running for a like period of not ex-
ceeding two years from their respective dates, which dates shall be
the dates of maturity of the notes for the renewal or refunding of
which such notes may be issued. If notes are issued pursuant to this
section then the refunding bonds authorized by this act shall not be
sold and delivered more than thirty days prior to the date of maturity
of such notes. ,

11. Except insofar as is prescribed in this act, the commissioners
of the sinking fund shall determine the forms of the bonds and/or
notes provided for in this act and of the coupons to be attached to the
coupon bonds and/or notes. The commissioners of the sinking fund
are authorized to do any and all things necessary in catrying out the
provisions of this act and in the issue and sale of the bonds and/or
notes herein authorized. All expenses incurred in carrying into effect
the provisions of this act, shall be paid out of the State treasury, out
of any moneys not otherwise appropriated, upon warrant of the comp-
troller drawn on the State treasurer, upon vouchers approved by the
commissioners of the sinking fund.

12. This act being necessary for the protection of the public wel-
fare and credit of the State an emergency is hereby declared to exist
and this act shall take effect and be in force immediately upon its
passage.