Chap. 2.—An ACT to amend chaffer"73 of the Code of Virginia by adding a
new section thereto, to be desigfiated as section 1777-a, authorizing the issuance
of refunding bonds by drainage districts under certain circumstances; providing
for the sale or other disposition of such bonds and the application of the
proceeds thereof; for the assessment of levies for the payment of such bonds,
and the adjustment of such levies and of levies made for the payment of any
bonds of any such district which may not be so refunded; authorizing any.
such drainage district to enter into contracts and agreements with the United
States government or any subdivision or agency thereof, for the purpose of
securing aid in the matter of refunding outstanding bonds of such district;
and to repeal all acts and parts of acts in conflict herewith. [H B 2]

Approved January 31, 1934

I. Be it enacted by the General Assembly of Virginia, That chapter
seventv-three of the Code of Vireinia he amended hv addins 2 new

section thereto, to be designated as section seventeen hundred and
seventy-seven-a, and to read as follows:

Section 1777-a. When any drainage district operating under the
provisions of this chapter shall now or hereafter have bonds outstand-
ing, either due or to become due, and when it shall seem to the county
board of drainage commissioners having jurisdiction over such drainage
district that it is to the best interests of such drainage district to re-
fund such outstanding bonds in whole or in part, such county board
of drainage commissioners is hereby authorized to refund all or part
of such outstanding bonds by the issuance of the negotiable refunding
bonds of such district. The refunding bonds so authorized shall mature
at one time or in installments, not more than forty years from their
date, shall bear interest at not to exceed six per cent per annum, may
be made callable on any interest payment date and may be made regis-
terable as to principal, all as provided in the resolution of the county
board of drainage commissioners authorizing the issuance thereof. The
county board of drainage commissioners may provide for the exchange
of said refunding bonds for a like or greater par amount of the bonds
to be refunded, or may provide for the sale of such refunding bonds
and the application of the proceeds of the sale thereof to the retirement
of the bonds to be refunded. If to be Sold, such refunding bonds may
be sold at public or private sale, as in the judgment of the county board
of drainage commissioners may seem best, provided that such refund-
ing bonds may be sold below par only if a like par amount of the bonds
to be refunded may be retired at a price correspondingly below par, it
being the intent hereof that in no event shall there be issued an amount
of refunding bonds larger than the par amount of bonds refunded
thereby.

All uncollected assessments levied for payment of principal of and
interest on bonds of such district refunded and retired by the issuance
of refunding bonds hereunder may be continued in force, and the pro-
ceeds of the collection thereof pledged and applied to the payment of
principal of and interest on the refunding bonds issued in lieu of such
original bonds, and if the outstanding bonds are retired at less than their
par value in such manner as to reduce the bonded indebtedness of the
district the assessments ‘theretofore levied for the payment of such in-
debtedness may in the discretion of the county board of drainage com-
missioners be proportionately reduced.

If the proceeds of the assessments levied for the payment of the
original bonds shall at any time prove insufficient to pay principal of
and interest on such refunding bonds, or if it shall at any time appear
to the county board of drainage commissioners that there is likelihood
of the insufficiency of such assessments, said board shall provide for the
levy and collection of additional assessments sufficient for such purpose
and the holder or holders of refunding bonds issued hereunder shall
have a right of action to compel such levy in the manner provided in
this chapter.

If the county board of drainage commissioners deems it advisable
it may, prior to the issuance of refunding bonds, order the cancellation
of the assessments levied for the payment of the bonds refunded, except
in so far as such assessments were levied for the payment of bonds not
actually retired by the issuance of refunding bonds, and may direct the
preparation of new assessment rolls and the levy and collection of new as-
sessments sufficient for the payment of principal of and interest on such
refunding bonds. In the event new or additional assessments are levied
pursuant to the provisions of this or the next above paragraph, such rolls
shall be prepared and such assessments shall be levied in all respects as
provided by the provisions of this chapter for the preparation of the
original rolls and levy of the original assessments. If additional or
new assessments are so levied, such assessments shall be based on the
benefits classification and classification map prepared for the original
assessments, and shall be levied only after all persons interested shall
have been given full hearing by the county board of drainage commis-
sioners on the question of benefits and any other question on which they
shall desire to be heard. Notice of such hearing shall be given by publi-
cation once a week for two consecutive weeks in a newspaper of general
circulation published in a county in which such district is located in
whole or in part, and the determination of the county board of drainage
commissioners shall be final.

Except as herein otherwise provided, refunding bonds issued here-
under shall be authorized and issued in the manner provided in this
chapter for the authorization and issuance of other bonds of such drain-
age district, and except as above provided no notice or hearing of any
kind shall be necessary to the authorization, sale or issuance of such
refunding bonds or to the readjustment of assessments or levy additional
or new assessments as herein provided, and it shall not be necessary that
any orders or resolutions of the county board of drainage commissioners
incident thereto have court approval.

Any drainage district desiring to refund all or part of its outstand-
ing bonds pursuant to the provisions of this section, is authorized to
enter into contracts and agreements with the United States government
or with any subdivision or agency thereof for the purpose of securing
the aid of the United States or such subdivision or agency of the United
States, and to do all things and make all agreements reasonably required
by the United States or by such subdivision or agency of the United
States in order to accomplish such refunding.

2. All acts or parts of acts in conflict herewith are hereby repealed.

3. An emergency existing by reason of existing and impending de-
faults in the payment of the bonds of drainage districts resulting in the
impairment of the credit of such districts and of the Commonwealth
of Virginia, this act shall be in force and shall take effect from and
after its passage.