Chap. 413.—An ACT validating certain outstanding indebtedness of the Town of
Phoebus, Virginia, and authorizing the school board of the said Town of Phoebus,
Virginia, to borrow money and issue bonds for the purpose of refunding such
indebtedness, and requiring the council of said town annually to levy taxes to
pay the interest on the said new bonds and to create a sinking fund to redeem
the. principal thereof at maturity; and repealing certain acts inconsistent with
the provisions of this act. [H B 405]

Approved April 1,.1940 -.

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

Section 1. Fifty thousand dollars ($50,000) school bonds of the
school board of Phoebus, district number four of the County of
Elizabeth City, of the town of Phoebus, Virginia, dated December
first, nineteen hundred and twenty-one, bearing interest at six per
centum per annum, payable June first, and December first, the
principal amount of which bonds will be due and payable December
first, nineteen hundred and fifty-oné,‘but which are subject to re-
demption at the option of said school board-of Phoebus district num-
ber four of the County of Elizabeth City, Virginia, on the first day of
December, nineteen hundred and forty-one, and on the first day of
June and December of each year thereafter until maturity, are hereby
validated, ratified and confirmed and it is hereby declared that said
bonds constitute valid and legally binding obligations of the town of
Phoebus, Virginia.

Section 2. For the purpose of refunding part of the aforesaid in-
debtedness of school board of Phoebus district number four of the
County of Elizabeth City, Virginia, or any extensions thereof, the
school board of the town of Phoebus, Virginia, be, and it is authorized
to borrow a sum not to exceed thirty thousand dollars ($30,000.00),
and to issue bonds of the town of Phoebus to evidence such indebted-
ness, the said bonds to be issued in such form, in such denominations,
and to be payable at such time or times not to exceed thirty (30)
years from the date thereof as the said board may provide; the said
bonds shall bear interest at the rate not exceeding four and one-half
per centum per annum. Before said bonds are issued, a resolution
must be adopted by the town council by the recorded concurrent vote
of at least six (6) members of the council, elected to said council, ap-
proving the resolution adopted by the school board directing the
issuance of said bonds.

Section (3) (a) The town of Phoebus is hereby authorized to sell
said bonds at public or private sale, or may purchase any part of the
said bonds from the sinking fund of the said town, at a price of not
less than par and accrued interest. After said bonds have been so
purchased they shall constitute legally binding outstanding obligations
of the town of Phoebus. The town or officers thereof, having control
of the sinking fund when they deem it advisable, may dispose of all
such bonds at one time, or parts of said issue of bonds from time to
time, upon the open market, at the best price obtainable.

(b) Said refunding bonds may be delivered to the purchaser
thereof prior to the maturity date of the outstanding indebtedness
authorized to be refunded hereby, or prior to the date upon which said
bonds are called for redemption. ,

Section 4. After the issuance of these bonds, as hereinabove pro-
vided, the council of the town of Phoebus shall, notwithstanding the
provisions of any other statute, annually levy a special tax upon all
of.the property subject to taxation in and by the said town, sufficient
to pay the interest on the said bonds and to create a sinking fund to
redeem the principal thereof at maturity. |

Section 5. This act shall be complete authority for the issuance
of the refunding bonds authorized herein. _

-Section 6. An act entitled “An act validating certain outstanding
indebtedness of the Town of Phoebus, Virginia, and authorizing said
Town of Phoebus, Virginia, to borrow money and issue bonds for the
purpose of refunding such indebtedness and to require the council of
said town annually to levy taxes to create a sinking fund to redeem
the principal thereof at maturity.”, approved February seventh,
nineteen hundred and forty, and all acts and parts of acts in conflict
with this act, are hereby repealed.