Chap. 45.—An ACT to validate certain outstanding indebtedness of the Town of
Phoebus, Virginia; to authorize the school board of said town to borrow money
and issue bonds for the purpose of refunding such indebtedness; to require the
council of said town annually to levy taxes to pay the interest on said new
bonds; to create a sinking fund to redeem the principal thereof at maturity ;
and to repeal Chapter 9, Acts of 1940, approved February 7, 1940, validating
certain bonds of the Town of Phoebus, and to repeal all other acts inconsistent
with the provisions of this act. [H B 120]

Approved February 17, 1942

1. Be it enacted by the General Assembly of Virginia, as follows:
Section 1. Twenty-thousand dollars ($20,000.00) school bonds of
the school board of Phoebus, district number four of the County of
Elizabeth City, of the Town of Phoebus, Virginia, dated May fifteenth,
nineteen hundred and thirty-nine, bearing interest at four per centum per
annum, payable May fitteenth of each year, the principal amount of
which bonds will not be due or payable until May fifteenth, nineteen
hundred and fifty-nine, but which are subject to redemption at the option
of the State Board of Education through anticipation at any time there-
after 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
indebtedness of the 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 nineteen thousand dollars ($19,000.00), 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 board may provide; the said bonds shall bear
interest at the rate not exceeding three and one-half per centum per an-
num. Before said bonds are issued, a resolution must be adopted by the
town council by the recorded concurrent vote of at least six (6) mem-
bers of the council, elected to said council, approving 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 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 there-
of 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.

2. Be it enacted, That an act entitled “An act validating certain
outstanding indebtedness of the Town of Phoebus, Virginia, and author-
izing 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.”, being chapter nine, Acts of nineteen hundred and forty,
approved February seventh, nineteen hundred and forty, and all acts and
parts of acts in conflict with this act, are repealed. o
3. An emergency exists and this act is in force from its passage.