Chap. 465.—An ACT to amend and reenact Sections 2-a and 10, as amended
of Chapter 161 of the Acts of Assembly of 1926, approved March 17, 1926,
the chapter and sections relating respectively, to sanitary districts and the
enlargement and issuance of bonds thereof. {S 318]

Approved April 2, 1948

Be it enacted by the General Assembly of Virginia:

1. That sections two-a, and ten, as amended, of chapter one hundred
sixty-one of the Acts of Assembly of nineteen hundred twenty-six,
approved March seventeen, nineteen hundred twenty-six, be amended
and reenacted as follows:

Section 2-a. The circuit court, or the judge of such court in vaca-
tion, upon the petition of the board of supervisors or other governing
body of the county and of twenty-five percentum of the qualified voters
residing within the limits of the territory proposed to be added or
severed, may make an order altering the boundaries of and enlarging
or reducing any sanitary district created under the provisions of this
act, which order shall prescribe the metes and bounds of the territory to
be added or severed; provided, however, that no order reducing a
sanitary district and severing any territory therefrom shall be made if
any bonds of the sanitary district have theretofore been issued and
have not been redeemed in full as of the date of the petition requesting
such reduction of the sanitary district, or if any system or systems have
been established and are in operation under the provisions of section
three of this act, as amended, in the territory proposed to be severed
as of the date of the petition requesting such reduction of the sanitary
district.

Upon the filing of said petition a hearing shall be had as provided in
section two of this act as amended, and the notice of such hearing may
require all interested persons to appear and show cause why any
special tax levied or to be levied in the sanitary district for special sani-
tary district purposes may not likewise be levied and collected, or dis-
continued after the end of the current taxable year, in the territory pro-
posed to be added to or severed from such district, and to appear and
show cause why the net operating revenue derived or to be derived
in the added territory from the operation of any system or systems
established or to be established under the provisions of section three of
this act, as amended, may not be set apart to pay the interest on and
retire at maturity the principal of any bonds theretofore issued in con-
nection with such system or systems. Nothing in such order enlarging
a sanitary district as provided herein shall be construed to limit or ad-
versely affect the rights and interests of any holder of bonds issued by said
district, and such order shall expressly preserve and protect such rights
and interests.

Section 10. The board of supervisors shall determine what amount
of bonds shall be issued for acquiring, constructing or operating said
system or systems in said district or districts, but the maximum amount
of bonds issued shall in no case exceed the maximum amount prescribed
in section four of this act as amended, and in event they do not at said
meeting direct the present issuing of all the said bonds, they may there-
after from time to time direct the residue thereof to be issued to carry out
the wishes of the voters, so far.as necessary, as expressed in such elec-
tion, and in event the board, for any reason, fails or refuses to issue the
bonds so authorized to be issued, the circuit court of the county may,
upon the complaint of ten qualified voters of such district and after ten
days’ notice to the chairman of the board, for cause shown, issue an
order directing them to issue the said bonds or any unissued residue
thereof, or such portion thereof as the court may, from time to time, deem
proper to be issued in order to carry out the wishes of the voters
expressed in said election. They shall have power to appoint an agent
or agents to sell said bonds (and to pay said agent or agents a com-
mission for negotiating said sale not to exceed three percentum of the
amount of bonds sold by them, or to pay such sum to the purchasers of
such bonds, provided that said bonds shall be sold to be paid for in
lawful money only, and shall not be sold at less than par value.) When
such a sale of bonds has been negotiated, the board of supervisors shall
issue the same. Such bonds may be either registered or with coupons
attached, as said hoard of supervisors may prescribe, and shall have
written or printed in ink the following sentences : “These bonds are issued
POT CO sescessecvesicennnncenns of a public -.......2....eeeeeee SYSCEM AN .....0...--.ssecennseee
sanitary district, and the full faith and credit of the said district is hereby
pledged for their payment.” Such bonds shall be signed by the chairman
and counter-signed by the clerk thereof under the seal of the Board;
shall be in denominations of one hundred dollars or some multiple
thereof; shall bear interest at a rate not exceeding six per centum per
annum, payable semi-annually, both principal and interest to be payable
at such place or places as may be determined by the board of supervisors,
and shall be payable not exceeding thirty-four years from the date there-
of at said office, but may, in the discretion of said board, be made re-
deemable at such time or times within such period or periods and upon
such notice as the said board may prescribe and stipulate upon the face
of the bonds when issued. The board shall deliver them to the treasurer
of the county, who shall deliver said bonds to the purchasers thereof,
or their order, upon the payment of the price thereof. The said treasurer
and his sureties shall be liable for the amount received for said bonds
as though it were a county levy, and said funds shall be expended for
the purposes and in the sanitary district or districts for which it was
intended, and none other. The said treasurer shall receive the reasonable
cost to him of giving surety on such additional bond or bonds as may be
required of him, if any, on account of his receipts heretofore or hereafter
of said funds. The proceeds of said bond issue shall be deposited, paid
out and disbursed as provided by section three hundred and fifty of the
Tax Code of Virginia, as amended. All interest that shall accrue from
said funds shall be accounted for by the said treasurer and be expended
for the purposes for which the bonds were issued, and in so far as not
necessary therefor, shall be used for the payment of the interest on the
bonds, or shall be paid into the sinking fund to redeem the principal
thereof at maturity.
2. An emergency exists and this act is in force from its passage.