CHAPTER 371

An Act to provide for an optional method by counties for the authoriza-
tion, issuance and sale of county bonds; prescribing the powers and
duties of the governing bodies of counties in connection therewith;
and authorizing the investment of the proceeds of such fon 9491

Approved March 31, 1952

Be it enacted by the General Assembly of Virginia:

1. §1. This act may be cited as the “Public Borrowing Law of 1952.”

§ 2. (a) The word “county” shall mean any county now or here-
after existing in the Commonwealth of Virginia.

(b) The term “governing body” shall mean the board of supervisors,
the county board, or such other board or body in which the general legis-
lative powers of the county are vested.

(c) The term “initial borrowing resolution” shall mean the resolution
adopted by the governing body of a county under the provisions of § 4
of this act.

§ 3. Each county in the Commonwealth of Virginia shall be and is
hereby authorized to provide by resolution of its governing body for the
contracting of a debt and the issuance of bonds for any one or more of
the following purposes:
(a) to provide funds to pay the cost of any general public improve-
ment or property, the construction or acquisition of which is not spe-
cifically prohibited by the Constitution of the Commonwealth; provided
that no bonds shall be issued to pay for current expenses ;

(b) to fund or refund any bonds of the county outstanding at the
time this act takes effect or which may be outstanding at any time under
the provisions of this act; and

(c) to provide funds for any other purpose for which it is authorized
by law to appropriate money, except for current expenses.

§ 4. Notwithstanding the provisions of any other law of the Com-
monwealth of Virginia the governing body of any county shall be and is
hereby authorized by resolution of such governing body to request the
circuit court, or any judge thereof, in and for said county to order an
election upon the question of contracting a debt and issuing bonds for
any I purpose or purposes authorized by this act. Such resolution shall
sta

(a) In brief and general terms the purpose or purposes of the bond
issue.

(b) The maximum amount of money to be raised by the bond issue,
and, if more than one purpose the maximum amount of money for each
purpose; provided, however, that with respect to the amount of money to
be raised for school purposes, a statement of the maximum amount for
each separate purpose shall not be required.

Prior to the adoption under the provisions of this section of a reso-
lution by the governing body of any county requesting the ordering of an
election upon the question of contracting a debt and issuing bonds for
school purposes, the county board of education or school board of such
county shall first request, by resolution, such governing body to take such
action. .

§ 5. Upon the adoption by the governing body of any county of an
initial borrowing resolution under the provisions of this act, a copy
thereof, certified by the clerk of such governing body, shall be filed with
the judge of the circuit court of such county who shall thereupon make
an order requiring the judges of election on the day fixed in such order,
not less than ten days nor more than thirty days from the date of such
order, to open a poll and take the sense of the qualified voters of the county
on the question of contracting the debt and issuing bonds for the purpose
or purposes set forth in the initial borrowing resolution. Notice of said
election in the form prescribed by the judge of the circuit court shall be
published at least once before the election in a newspaper of general
circulation in the county, at least ten days before the election.

§ 6. The regular election officers of the county, at the time desig-
nated in such order authorizing such vote, shall open the polls at the
various voting places in the county and shall conduct such election in such
manner as is provided by law for other elections. At such election each
qualified voter who shall approve contracting a debt and issuing bonds for
such purpose or purposes shall cast his vote, either by paper ballot or by
use of a voting machine as the governing body may provide, for the bond
issue or against the bond issue, for each such purpose or purposes. The
votes shall be counted, returns made and canvassed as in other special
elections and the results certified by the commissioners of election to the
circuit court of the county or a judge thereof in vacation. If it shall appear
by the report of the commissioners of election that a majority of the
qualified voters of the county, voting on the question, approve contracting
the debt and issuing the bonds for such purpose or purposes, the circuit
court or a judge thereof in vacation shall forthwith enter an order author-
izing the governing body of the county to proceed to carry out the wishes
of the voters.
§ 7. In the event the question of contracting a debt and issuing bonds
for the purpose or purposes set forth in the initial borrowing resolution
shall be approved at the election called and held for such purpose, the gov-
erning body of the county, subsequent to the recording of the results of
such election, shall, by resolution, at one time, or from time to time,
authorize the issuance of bonds, and a copy of each such resolution,
certified by the clerk of the governing body of the county shall be
filed with the clerk of the circuit court of such county. With respect
to bonds for school purposes, the governing body of the county shall
take this action only after the county board of education, if any,
or school board has, by resolution, requested the governing body of
the county to authorize the issuance of such bonds. The bonds shall
be dated, shall bear interest at such rate or rates not exceeding five
per centum per annum, shall mature at such time or times not exceed-
ing forty years from their date, and may be made redeemable before
maturity, at the option of such governing body, at such price or prices
and under such terms and conditions, all as may be fixed by such
resolution. Such resolution shall determine the form and manner of
execution of bonds. including any interest coupons to be attached thereto,
shall fix the denomination or denominations of the bonds and the place or
places of payment of principal and interest which may be at any bank or
trust company within or without the Commonwealth.

In case any officer whose signature or a facsimile of whose signature
shall appear on any bonds or coupons shall cease to be such officer before
the delivery of such bonds, such signature or such facsimile shall never-
theless be valid and sufficient for all purposes the same as if such officer
had remained in office until such delivery. Bonds may be issued in coupon
or in registered form, or both, as the governing body may, in such resolu-
tion, determine, and provisions may be made in the resolution for the
registration of any coupon bonds as to principal alone and also as to both
principal and interest, and for the reconversion into coupon bonds or any
bonds registered as to both principal and interest.

In case any bond shall become mutilated or be destroyed or lost, the
governing body may cause a new bond of like date, number and tenor to
be executed and delivered in exchange and substitution for and upon the
cancellation of such mutilated bond and its interest coupons, if any, or in
lieu of and in substitution for such bond and its coupons, if any, destroyed
or lost, upon the holder’s paying the reasonable expenses and charges in
connection therewith and in the case of a bond destroyed or lost, his
filing with the county treasurer of the county evidence satisfactory to the
county treasurer that such bond and coupons, if any, were destroyed or
lost, and of his ownership thereof, and furnishing indemnity satisfactory
to such treasurer.

§ 8. The governing body of any county may sell any bonds of such
county authorized under the provisions of this act in such manner, either
at public or private sale, and for such price as it may determine to be
for the best interests of the county, but no such sale shall be made at a
price so low as to require the payment of interest on the money received
therefor at more than five per centum per annum, computed with relation
to the absolute maturity of the bonds in accordance with standard tables
of bond values excluding, however, from such computation, the amount of
any premium to be paid on the redemption of any bonds prior to maturity.

§ 9. Pending the application of the proceeds of any bonds author-
ized under the provisions of this act to the purpose or purposes for which
such bonds have been authorized, all or any part of such proceeds may be
invested, upon resolution of the governing body of the county authorizing
such bonds, in direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by the United States
Government which shall mature, or which shall be subject to the redemp-
tion by the holder thereof at the option of such holder, not later than
eighteen months after the date of such investment. Any obligation so
purchased as investment of the proceeds of such bonds shall be deemed
at all times to be a part of such proceeds, and the interest accruing
thereon and any profit realized from such investment shall be credited
to such proceeds. Any obligation so purchased shall be held by the treas-
urer of the county as custodian thereof and shall be sold by the county
treasurer upon resolution of the governing board of the county directing
such sale, at the best price obtainable, or presented for redemption, when-
ever it shall be necessary, as determined by such resolution, so to do in
order to provide moneys to meet the purposes for which the bonds of
the county shall have been authorized.

§ 10. For a period of thirty days after the date of the filing with
the circuit court of the county of the certified copy of the resolution of
the governing board of such county authorizing the issuance of bonds
and fixing the form and details thereof, any person in interest shall have
the right to contest the legality of such bonds or the taxes to be levied
tor the payment of the principal of and the interest on such bonds, after
which time the validity of such bonds, the validity of the taxes necessary
for the payment of the principal of and the interest on such bonds and
all other details of the resolution authorizing such bonds may no longer
be questioned or attacked for any cause whatsoever. If such contest shall
not have been begun within the thirty-day period herein prescribed, the
authority to issue the bonds, the validity of the taxes necessary to pay
the principal of and the interest on the bonds and all other proceedings
in connection with the authorization and the issuance of the bonds shall
be conclusively presumed to have been legally taken and no court shall
have authority to inquire into such matters.

§ 11. The governing body of any county issuing bonds under the
provisions of this act shall levy and collect annually, at the same time and
in the same manner as other county taxes are assessed, levied and collected,
a tax upon all taxable property in the county subject to local taxation,
sufficient to provide for the payment of the principal of and the interest
upon such bonds as the same respectively become due.

§ 12. The powers conferred by this act shall be in addition or sup-
plemental to the powers conferred by any other law and bonds may be
authorized pursuant to the provisions of this act notwithstanding the
fact that any other law may provide for the issuance of bonds for like
purposes, and without regard to the requirements, restrictions or other
provisions contained in any other law. Bonds may be issued under the
provisions of this act notwithstanding any debt or any other limitations
prescribed by any other law, and the mode and method of the procedure
for the issuance of bonds under this act need not conform to the provisions
of any other law.

§ 18. The provisions of this act are severable and if any of its
provisions shall be held unconstitutional by any court of competent juris-
diction, the decision of such court shall not affect or impair any of the
remaining provisions of this act.

2. An emergency exists and this act is in force from its passage.