Chap. 92.—An ACT to provide for the refunding of certain certificates of indebt-
edness of the par value of $2,000,000.00, issued under an act entitled “an act to
repeal an act entitled an act to anticipate by counties, or otherwise, the con-
struction 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 construction of the State high-
way system, approved March 15, 1920, approved March 21, 1924; to provide
for the issue and sale of certificates of indebtedness 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,’ ap-
proved March 19, 1926, by authorizing and directing the issuance and sale of
$2,000,000.00 par value of certificates of indebtedness and/or notes of the Com-
monwealth of Virginia; and to provide for the payment of the interest on such
certificates of indebtedness and/or notes, and the principal thereof at maturity.

[S B 95]
Approved March 3, 1932

1. Be it enacted by the general assembly of Virginia, That the
commissioners of the sinking fund with the approval of the governor
are hereby authorized and directed to issue and sell certificates of in-
debtedness in the name of and on behalf of the Commonwealth of Vir-
ginia of the par value of two million dollars, for the purpose of raising
funds to refund certificates of indebtedness of the State, of the par
value of two million dollars, of which certificates one million dollars
par value will mature on July first, nineteen hundred and thirty-two,
and one million dollars par value will mature on July first, nineteen
hundred and thirty-three, issued under an act approved March nine-
teenth, nineteen hundred and twenty-six, entitled “an act to repeal
an act entitled an act to anticipate by counties, or otherwise, the con-
struction of the State highway system, approved March fifteenth, nine-
teen hundred and twenty, as amended and re-enacted by an act en-
titled 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; to provide
for the issue and sale of certificates of indebtedness of the Common-
wealth 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.”

2. One million dollars par value of the certificates of indebtedness
authorized and directed by this act to be issued, shall be dated the
first day of July, nineteen hundred and thirty-two, and shall mature
on July first, nineteen hundred and thirty-eight ; the remaining one
million dollars par value of the said certificates of indebtedness shall
be dated the first day of July, nineteen hundred and thirty-three, and
shall mature on July first, nineteen hundred and thirty-nine. They
shall bear interest payable semi-arinually on 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
five per centum per annum. They shall be issued in such denomina-
tions as the commissioners of the sinking fund with the approval of
the governor may determine. .

3. The certificates of indebtedness issued under the provisions of
this act shall be lithographed or engraved and shall be signed on be-
half of the Commonwealth of Virginia by the State treasurer and the
comptroller, under the lesser seal of the Commonwealth. The in-
terest coupons on such of the certificates as may be issued in coupon
form, shall bear the facsimile signature of the State treasurer, whose
signature upon such coupons may be his lithographed or engraved
facsimile signature. The said certificates of indebtedness 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.

These certificates shall be lithographed or engraved by a company
of recognized standing, who shall either permit the plates to become
the property of the Commonwealth of Virginia, or shall, in the pres-
ence of the comptroller and the State treasurer destroy the said plates.

4. The said certificates may be issued in either registered or
coupon form, as the commissioners of the sinking fund, with the ap-
proval of the governor, may determine. ,

5. Certificates of indebtedness issued in registered form shall be
registered as to principal and interest in the office of the State treas-
urer, who shall register in books provided for that purpose, the num-
ber 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 certificate, 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 State treasurer. Interest on such
registered certificates shall be payable semi-annually January first
and July first of each year, such payments to be made by check signed
by the State treasurer and issued on warrants drawn by the comp-
troller. 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, by the registered owner
or his duly authorized attorney in fact, at the office of the State treas-
urer by checks signed by the State treasurer and issued on warrants
drawn by the comptroller.

6. The coupon certificates of indebtedness shall have affixed 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 surrender of the
principal certificates of indebtedness or the interest coupons, as the
case may be, as they severally mature, at the office of the State treas-
urer on or after their respective maturity dates by checks signed by
the State treasurer and issued on warrants drawn by the comptroller.

The 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, number, date of issue, maturity and
amount of each certificate of indebtedness issued, and shall lst all
registered certificates as provided in the foregoing sections of this act.

7. Both the principal and interest of the certificates of indebted-
ness 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.

8. Registered certificates issued hereunder shall be convertible
into coupon certificates of equal amount, upon presentation and sur-
render of such registered certificates at the office of the State treas-
urer by the registered owner thereof, or his duly authorized attorney
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 certificates shall be done as at
present with reference to the public debt, and the provisions of sec-
tions 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 provisions of this act, to the cer-
tificates of indebtedness issued hereunder.

9. All certificates of indebtedness issued under the provisions of
this act shall be exempt from taxation by the Commonwealth of Vir-
ginia 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.

10. The State treasurer shall be the custodian of all unsold cer-
tificates of indebtedness issued pursuant to the provisions of this act
and of the plates from which such certificates and the interest coupons
are lithographed or engraved, if they be not destroyed as hereinbefore
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 relating to the conversion of registered certificates into
coupon certificates, or the conversion of coupon certificates into reg-
istered certificates. "

11. 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 certificates of indebtedness issued under
the provisions of this act, and there is hereby created a sinking fund
for the payment of the principal and interest of the certificates of in-
debtedness issued hereunder as follows: There shall be set aside
each year commencing in the calendar year nineteen hundred and
thirty-two, 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 l-
cense tax, now provided by law, or either, a sum sufficient to pay the
interest on the certificates of indebtedness issued hereunder, as the said
interest matures, and in order to create a sinking fund for the payment
of one million ($1,000,000) dollars of said certificates of indebtedness,
to be dated July first, nineteen hundred and thirty-two, there shall be
annually set aside beginning July first, nineteen hundred and thirty-
two, from the proceeds in the State treasury of the motor vehicle fuel
tax and the motor vehicle license tax, now provided by law, or either,
such an amount as if repeated annually and if laid out at interest,
would be sufficient for the payment of the principal of said certificates
of indebtedness when due, and in order to create a sinking fund for the
payment of one million ($1,000,000) dollars of said certificates of in-
debtedness to be dated July first, nineteen hundred and thirty-three,
there shall be annually set aside beginning July first, nineteen hundred
and thirty-three, from the proceeds in the State treasury of the motor
vehicle fuel tax and the motor vehicle license tax, now provided by law,
or either, such an amount as if repeated annually and if laid out at in-
terest, would be sufficient for the payment of the principal of said
certificates of indebtedness when due. 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 prin-
cipal and interest of the certificates of indebtedness issued hereunder
and for no other purpose.

12. The issuance of certificates of indebtedness hereunder shall
constitute an agreement for the benefit of the holders of such certifi-
cates that the tax upon motor vehicle fuels set aside for the construc-
tion or reconstruction of roads in the State highway system and the
State motor vehicle license tax, will not, while any of the certificates
issued under the provisions of this act, are unpaid be reduced to such
an extent as to prevent the amount of such taxes collectible each year
and available for the sinking fund hereinbefore provided over and
above the cost of collection thereof from being a sum equal at least
to the interest upon such unpaid certificates of indebtedness and the
sinking fund requirements for such year.

13. The commissioners of the sinking fund shall sell the certifi-
cates of indebtedness issued 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 certificates 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, for credit to the
sinking fund for certificates of indebtedness issued under the act ap-
proved March nineteenth, nineteen hundred and twenty-six, herein-
before referred to in section one of this act, and maturing on July
first, nineteen hundred and thirty-two and July first, nineteen hundred
and thirty-three. The commissioners of the sinking fund shall make
and keep a record of all certificates of indebtedness surrendered to
them and shall cancel all such certificates, and out of the proceeds
derived from the sale of the certificates of indebtedness issued under
this act shall pay to the counties, districts, cities, towns and persons
by whom such certificates of indebtedness have been surrendered the
par value of certificates so surrendered by them, respectively.

14. At any time after the issuance of the certificates of indebted-
ness herein provided for, has been authorized by the commissioners of
the sinking fund with the approval of the governor, and before the
sale of said certificates of indebtedness, the commissioners of the
sinking fund with the approval of the governor, may anticipate the
receipt of the proceeds to be derived from the sale of said certificates
of indebtedness by issuing and selling negotiable notes of the Com-
monwealth of Virginia, in coupon or registered form, bearing in-
terest at a rate not exceeding six per centum per annum, and ma-
turing not later than two years from their date, and all other provi-
sions of this act applicable to certificates of indebtedness 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 exceeding 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 is-
sued. If notes are issued pursuant to this section then the certificates
of indebtedness authorized by this act shall not be sold and delivered
more than thirty days prior to the date of maturity of such notes.

15. Except insofar as is prescribed in this act the commissioners
of the sinking fund, with the approval of the governor, shall de-
termine the forms of the certificates of indebtedness and/or notes
provided for in this act and of the coupons to be attached thereto.
The commissioners of the sinking fund and the governor are author-
ized to do any and all things necessary in carrying out the pro-
visions of this act and in the issue and sale of the certificates and/or
notes herein authorized. All expenses incurred in carrying into effect
the provisions of this act, shall be paid out of the State highway sys-
tem construction fund upon warrant of the comptroller drawn on the
State-treasurer, which said warrants shall be issued upon certificates
of the State highway commissioner.

This act being necessary for the protection of the public welfare
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.