Chap. 158.—An ACT to authorize the city of Norfolk to issue bonds, notes or other
obligations of said city in exchange for bonds, notes or other obligations held
in the sinking funds of said city in order to assure a more uniform annual debt
service charge for the retirement of outstanding bonded indebtedness, and to
regulate the annual contributions to such sinking funds and the maturities of
serial bonds hereafter issued by said city of Norfolk. {[H B 374]

Approved March 7, 1940

1. Beit enacted by the General Assembly of Virginia as follows:

Section 1. For the purpose of assuring a more uniform annual
debt service charge for the retirement of the outstanding bonded
indebtedness of the city of Norfolk, the council of said city shall have
power to issue to the Board of Sinking Fund Commissioners of said
city bonds, notes or other obligations (hereinafter described as “‘sinking
fund adjustment bonds”’) of an aggregate principal amount not exceed-
ing twelve million, five hundred thousand, seven hundred dollars, in
exchange for and redemption of bonds, notes or other obligations of
said city which were held on the first day of January, one thousand nine
hundred and forty by said Board of Sinking Fund Commissioners as
investments of the sinking funds of said city. Said sinking fund
adjustment bonds shall be issued in the name and upon the credit of
said city and shall be authorized by ordinance. Said sinking fund
adjustment bonds may be issued either at one time or in separate issues
from time to time as may be determined by the council and shall be
issued in such denominations, either in bearer or registered form or in
bearer form subject to registration, and shall bear such rate or rates of
interest not exceeding four per centum per annum, payable annually
or semi-annually, or shall bear no interest, as may be determined by
the council. Said sinking fund adjustment bonds shall be deemed to be
“serial bonds’’ issued in accordance with subdivision six of section
eighty-six of The Norfolk Charter of 1918 and no provision for the
establishment of a sinking fund for such sinking fund adjustment
bonds shall be made in the ordinance or ordinances authorizing the
same, but notwithstanding anything contained in said section eighty-
six Or in any other law said sinking fund adjustment bonds may be
made payable at such times not later than the thirty-first day of
December, one thousand nine hundred seventy-three and in such
annual installments as may be determined by the council. The full
faith and credit of the city shall be pledged for the prompt and punc-
tual payment of any sinking fund adjustment bonds issued pursuant
to thisact. Any such sinking fund adjustment bonds shall be delivered
to the Board of Sinking Fund Commissioners in exchange for and upon
surrender and cancellation of bonds, notes or other obligations of the
city of like principal amount held by said board as investments of the
sinking funds in its custody. The power hereby conferred to issue
sinking fund adjustment bonds bearing no interest or bearing interest
at a rate lower than four per centum per annum shall not relieve the
city of its obligation to make any sinking fund contributions for bonds
other than sinking fund adjustment bonds required by said section
eighty-six or by any other law or by any ordinance heretofore adopted.

Section 2. In the event that any sinking fund adjustment bonds
are issued pursuant to this act, said Board of Sinking Fund Commis-
sioners shall, not later than sixty days before the end of each fiscal
year beginning with the fiscal year in which such bonds are issued,
submit to the city manager of said city and to the council of said city
a detailed statement showing separately the amount which should
have been paid into and should have been earned by the sinking fund
pertaining to each issue of outstanding bonds of said city and the
amount actually paid into and earned by such sinking fund. It shall
be the duty of the council to appropriate to each of such sinking funds
in the ensuing fiscal year such sum as may be necessary to produce a
sum equal to the amount, if any, by which the required payments and
earnings exceed the actual payments and earnings and to produce
during such ensuing fiscal year a sum equal to four per centum of the
amount so shown as required to have been paid into and earned by
such sinking fund, less the amount that will be earned during such
ensuing fiscal year on the assets then in the sinking fund.

Section 3. In the event that any sinking fund adjustment bonds
are issued pursuant to this act, serial bonds issued thereafter and prior
to the first day of January, one thousand nine hundred and fifty-two
in accordance with subdivision six of section eighty-six of The Norfolk
Charter of 1918, may, in the discretion of the council, notwithstanding
anything contained in said subdivision six, be made payable in annual
installments, the first of which shall be payable in the fiscal year one
thousand nine hundred and fifty-three and the last of which shall be
payable within the period of the probable life of the work or object for
which the debt evidenced by said bonds was created, ascertained and
certified as provided in said section eighty-six.

Section 4. All laws or parts of laws inconsistent herewith are
hereby repealed to the extent that may be inconsistent herewith.

Section 5. An emergency is hereby found and declared to exist
and this act shall be in full force and effect from its passage.