Chap. 9.—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 pay the interest on
the said new bonds and to create a sinking fund to redeem the principal thereof
at maturity. (H B 19]

, Approved February 7, 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 prin-
cipal amount of which bonds will be due and payable December first,
nineteen hundred and fifty-one, but which are subject to redemption
at the option of said School Board of Phoebus District Number Four
of the County of Elizabeth City, Virginia, and 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 and notes constitute valid and legally binding obligations of
the Town of Phoebus, Virginia.

Section 2. For the purpose of refunding part of the aforesaid
indebtedness of School Board of Phoebus District Number Four of
the County of Elizabeth City, Virginia, or any extensions thereof,
the town council of the Town of Phoebus, Virginia, be, and it is
authorized to borrow a sum not to exceed thirty thousand dollars
($30,000), and to issue bonds of the Town of Phoebus to evidence
such indebtedness, 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 council may pro-
vide, 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, approving the resolution 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 obliga-
tions 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
aid 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.

2. All acts or parts of acts in conflict with this act are hereby
repealed.