Chap. 33.—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
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 en-
titled an act to anticipate by counties or otherwise the construction of the
State highway system, approved March 15, 1920, approved March 21, 1924;
to provide for the issue and sale of certificates of indebtedness of the Com-
monwealth 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, approved March 19, 1926, by authorizing and directing the issu-
ance and sale of $2,000,000.00 par value certificates of indebtedness and/or
notes of the Commonwealth of Virginia; and to provide for the payment of
interest on such certificates of indebtedness and/or notes, and the principal
thereof at maturity. [S B 66]

Approved February 20, 1934

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. The commissioners of the sinking fund with the ap-
proval of the Governor are hereby authorized and directed to issue and
sell certificates of indebtedness in the name of and on behalf of the
Commonwealth of Virginia 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-four, and one million dollars par value will mature on July
first, nineteen hundred and thirty-five, issued under an act approved
March nineteenth, nineteen hundred and twenty-six, entitled an act to
repeal 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; 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 pro-
visions of the aforesaid acts and to provide a sinking fund for the pay-
ment of the interest on the said certificates of indebtedness and the
principal thereof at maturity. |

Section 2. One million dollars par value of the certificates of in-
debtedness authorized and directed by this act to be issued shall be dated
the first day of July, nineteen hundred and thirty-four, and shall
mature on July first, nineteen hundred and forty-four; 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-five, and
shall mature on July first, nineteen hundred and forty-five. 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 with the approval of the Governor, but not exceeding five per
centum per annum. They shall be issued in such denominations as the
commissioners of the sinking fund with the approval of the Governor
may determine.

Section 3. The certificates of indebtedness issued under the pro-
visions of this act shall be lithographed or engraved and shall be signed
on behalf 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 fac-
simile signature. The said certificates of indebtedness and coupons may
be signed by the present Treasurer and Comptroller, or by their re-
spective successors in office at the time of signing, but no change in
such signature shall be necessary by reason of any change in said offi-
cers.

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 presence
of the Comptroller and the State Treasurer destroy the said plates.

Section 4. 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.

Section 5. Certificates of indebtedness 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 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 certifi-
cates shall be payable semi-annually January first and July first of each
year, such payments to be made by checks signed by the State Treasurer
and issued on warrants drawn by the Comptroller. The principal of
such registered certificates shall be paid as they severally mature upon
presentation and surrender of such certificates on or after the maturity
dates thereof, by the registered owner or his duly authorized attorney
in fact, at the office of the State Treasurer by checks signed by the State
Treasurer and issued on warrants drawn by the Comptroller.
Section 6. The coupon certificates of indebtedness shall have affixec
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 prin-
cipal certificates of indebtedness or the interest coupons, as the case
may be, as they severally mature, at the office of the State Treasurer
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 list all registered
certificates as provided in the foregoing sections of this act.

Section 7. Both the principal and interest of the certificates of in-
debtedness issued under the provisions of this act shall be payable in
lawful money of the United States of America.

Section 8. 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 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 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 incon-
sistent with the provisions of this act, to the certificates of indebtedness
issued hereunder.

Section 9. All certificates of indebtedness issued under the pro-
visions of this act shall be exempt from taxation by the Commonwealth
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 con-
tract with the holder thereof.

Section 10. 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 their 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
registered certificates.

Section 11. The full faith and credit and taxing power of the Com-

monwealth 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 indebted-
ness issued hereunder as follows: There shall be set aside each year
commencing in the calendar year nineteen hundred and thirty-four, 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 now pro-
vided by law, or either, a sum sufficient to pay the interest on the certifi-
cates 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-four, there shall be annually set aside
beginning July first, nineteen hundred and thirty-four, from the pro-
ceeds 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 mil-
lion ($1,000,000) dollars of said certificates of indebtedness to be
dated July first, nineteen hundred and thirty-five, there shall be an-
nually set aside beginning July first, nineteen hundred and thirty-five,
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 in-
debtedness 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 nineteen
hundred and forty-four—nineteen hundred and forty-five maturity 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 12. The issuance of certificates of indebtedness hereunder
shall constitute 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 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.

Section 13. The commissioners of the sinking fund shall sell the
certificates 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 indebted-
ness 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 certificates of indebtedness issued under the act
approved 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-four and July first, nineteen hundred and
thirty-five. 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, district, cities, towns and persons by whom
such certificates of indebtedness have been surrendered the par value
of certificates so surrendered by them respectively.

Section 14. At any time after issuance of the certificates of indebt-
edness 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 indebted-
ness by issuing and selling negotiable notes of the Commonwealth 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 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 issued. 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.

Section 15. Except insofar as is prescribed in this act the commis-
sioners of the sinking fund, with the approval of the Governor, shall
determine 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 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 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 system construction
fund upon warrant of the Comptroller drawn on the State Treasurer,
which said warrants shall be issued upon certificates of the State High-
way Commissioner.

Section 16. The commissioners of the sinking fund may, with the
written approval of the Governor being first obtained, when the said
certificates of indebtedness or any part thereof are due, effect temporary
loans for and on behalf of the sinking fund provided for in section
eleven (11) of this act and pledge as security therefor any securities
in which funds of the said sinking fund have been invested, when in
the opinion of the said commissioners such action should be taken in

lieu of selling the securities so purchased; if any such loan be effected
the securities pledged shall within a reasonable time thereafter be dis-
posed of and the proceeds from such sale used to repay the money
borrowed.

2. An emergency existing because of the necessity for the protection
of the public welfare and credit of the State, this act shall take effect
and be in force immediately upon its passage. |