CHAPTER 520

An Act to amend and reenact §§ 88-255.2, 38-255.4, 83-255.7, 38-255.8,
83-255.9, 338-255.14, 88-255.15 and 38-255.16 of the Code of Virginia,
relating to State turnpike projects.

: [fH 472]

Approved April 5, 1954
Be it enacted by the General Assembly of Virginia:

1. That § § 33-255.2, 33-255.4, 38-255.7, 33-255.8, 33-255.9, 33-255.14,
33-255.15 and 33-255.16 of the Code of Virginia be amended and reenacted
as follows:

§ 33-255.2. Credit of the Commonwealth not pledged.—Revenue
bonds issued under the provisions of this article shall not be deemed to
constitute a debt of the Commonwealth or of any political subdivision
thereof or a pledge of the faith and credit of the Commonwealth or of any
such political subdivision, but all such bonds shall be payable solely from
the funds herein provided therefor from revenues. All such revenue bonds
shall contain on the face thereof a statement to the effect that the Common-
wealth shall not be obligated to pay the same or the interest thereon except
from revenues of the project * for which they are issued and that neither
the faith and credit nor the taxing power of the Commonwealth is pledged
to the payment of the principal of or interest on such bonds.

All expenses incurred in carrying out the provisions of this article
shall be payable solely from funds provided under the authority of this
article and no liability or obligation shall be incurred by the Commission
hereunder beyond the extent to which money shall have been provided
under the provisions of this article.

§ 33-255.4. General grant of powers.—The Commission is hereby
authorized and empowered:

(a) To construct, maintain, repair and operate turnpike projects at
such locations within the Commonwealth as may be determined by the
Commission and approved by the Governor; provided, however, the Com-
mission shall have no power to * fix, charge or collect tolls for transit
over any existing free public highway;

) To issue turnpike revenue bonds of the Commonwealth payable
solely from the tolls and revenues pledged for their payment, for the pur-
pose - paying the cost of any * turnpike project, all as provided in this
article;

(c) To fix and revise from time to time and charge and collect tolls
for transit over each turnpike project constructed by it;

(d) To establish rules and regulations for the use of any such turn-
pike project;

(e) To acquire, hold and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this article;

(f) To designate the locations, and establish, limit and control such
points of ingress to and egress from each turnpike project as may be neces-
sary or desirable in the judgment of the Commission to insure the proper
operation and maintenance of such project, and to prohibit entrance to
such project from any point or points not so designated ;

(g) To make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of its
powers under this article;

(h) To employ, in its own discretion and without further approval,
consulting engineers, attorneys, accountants, construction and financial
experts, superintendents, managers, and such other employees and agents
as may be necessary in its judgment, and to fix their compensation;

__ (i) To receive and accept from any federal agency grants for or in
aid of the construction of any turnpike project, and to receive and accept
aid or contributions from any source of either money,. property, labor or
other things of value, to be held, used and applied only for the purposes for
which such grants and contributions may be made; and

(j) To do all acts and things necessary or convenient to carry out
the powers expressly granted in this article.

§ 33-255.7. Turnpike revenue bonds.—The Commission is hereby
authorized to provide by resolution, at one time or from time to time, for
the issuance of turnpike revenue bonds of the Commonwealth for the pur-
pose of paying all or any part of the cost of any * turnpike project. The
principal of and the interest on such bonds shall be payable solely from the
funds herein provided for such payment. The bonds of each issue 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 exceeding forty
years from their date or dates, as may be determined by the Commission,
and may be made redeemable before maturity, at the option of the Commis-
sion, at such price or prices and under such terms and conditions as may
be fixed by the Commission prior to the issuance of bonds. The Commis-
sion shall determine the form of the bonds, including any interest coupons
to be attached thereto, and 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 Com-
monwealth. The bonds shall be signed by the State Highway Commis-
sioner or shall bear his facsimile signature, and the official seal of the
Commission shall be impressed thereon and attested by the Secretary of
the Commission, and any coupons attached thereto shall bear the facsimile
signature of the chairman of the Commission. 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 nevertheless be valid and sufficient
for all purposes the same as if he had remained in office until such delivery.
All bonds issued under the provisions of this article shall have and are
hereby declared to have all the qualities and incidents of negotiable instru-
ments under the negotiable instruments law of the Commonwealth. The
bonds may be issued in coupon or in registered form, or both, as the
Commission may determine, and provision may be made for the registra-
tion of any coupon bonds as to principal alone and also as to both principal
and interest, and for the reconversion into coupon bonds of any bonds
registered as to both principal and interest. The Commission may sell
such bonds in such manner and for such price as it may determine will
best effect the purposes of this article.

The proceeds of the bonds of each issue shall be used solely for the
payment of the cost of the turnpike project * for which such bonds shall
have been issued, and shall be disbursed in such manner and under such
restrictions, if any, as the Commission may provide in the resolution
authorizing the issuance of such bonds or in the trust agreement herein-
after mentioned securing the same. If the proceeds of the bonds of any
issue, by error of estimates or otherwise, shall be less than such cost, addi-
tional bonds may in like manner be issued to provide the amount of such
deficit, and unless otherwise provided in the resolution authorizing the
issuance of such bonds or in the trust agreement securing the same, shall
be deemed to be of the same issue and shall be entitled to payment from the
same fund without preference or priority of the bonds first issued. If the
proceeds of the bonds of any issue shall exceed such cost, the surplus shall
be deposited to the credit of the sinking fund for such bonds.

Prior to the preparation of definitive bonds, the Commission may,
under like restrictions, issue interim receipts or temporary bonds, with or
without coupons, exchangeable for definitive bonds when such bonds shall
have been executed and are available for delivery. The Commission may
also provide for the replacement of any bonds which shall become mutilated
or shall be destroyed or lost. Bonds may be issued under the provisions of
this article without obtaining the consent of any department, division,
commission, board, bureau or agency of the Commonwealth, and without
any other proceedings or the happening of any other conditions or things
than those proceedings, conditions or things which are specifically re-
quired by this article, —

§ 83-255.8. Trust agreement.—In the discretion of the Commission
any bonds issued under the provisions of this article may be secured by a
trust agreement by and between the Commission and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the Commonwealth. Such trust agreement or
the resolution providing for the issuance of such bonds may pledge or
assign the tolls and other revenues to be received, but shall not convey or
mortgage any turnpike project or any part thereof. Such trust agreement
or resolution providing for the issuance of such bonds may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may he reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Commission in relation
to the acquisition of property and the construction, improvement, main-
tenance, repair, operation and insurance of the turnpike project * in con-
nection with which such bonds shall have been authorized, and the rates
of toll to be charged, and the custody, safeguarding and application of all
moneys. It shall be lawful for any bank or trust company incorporated
under the laws of the Commonwealth which may act as depositary of the
proceeds of bonds or of revenues to furnish them indemnifying honds or
to pledge such securities as may be required by the Commission. Any such
trust agreement may set forth the rights and remedies of the bondholders
and of the trustee, and may restrict the individual right of action by bond-
holders. In addition to the foregoing, any such trust agreement or resolu-
tion may contain such other provisions as the Commission may deem rea-
sonable and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of such trust agreement or resolu-
tion may be treated as a part of the cost of the operation of the turnpike
project.

§ 33-255.9. Revenues.—The Commission is hereby authorized to fix,
revise, charge and collect tolls for the use of each turnpike project and the
different parts or sections thereof, and to contract with any person, part-
nership, association or corporation desiring the use of any part thereof,
including the right of way adjoining the paved portion, for placing thereon
telephone, telegraph, electric light or power lines, gas stations, garages,
stores, hotels and restaurants, or for any other purpose except tracks for
railroad or railway use, and to fix the terms, conditions, rents and rates
of charges for such use, provided, that a sufficient number of the afore-
mentioned facilities shall be authorized to be established in each service
area along any such turnpike project to permit reasonable competition by
private business in the public interest. Such tolls shall be fixed and
adjusted in respect of the aggregate of tolls from the turnpike project * in
connection with which the bonds of any issue shall have been issued as to
provide a fund sufficient with other revenues, if any, to pay (a) the cost
of maintaining, repairing and operating such turnpike project * and (b)
the principal of and interest on such bonds as the same shall become due
and payable, and to create reserves for such purposes. Such tolls shall
not be subject to supervision or regulation by any other commission, board,
bureau or agency of the Commonwealth. The tolls and all other revenues
derived from the turnpike project * in connection with which the bonds
of any issue shall have been issued, except such part thereof as may be
necessary to pay such cost of maintenance, repair and operation and to
provide such reserves therefor as may be provided for in the resolution.
authorizing the issuance of such bonds or in the trust agreement securing
the same, shall be set aside at such regular intervals as may be provided in
such resolution or such trust agreement in a sinking fund which is hereby
pledged to, and charged with, the payment of the principal of and the
interest on such bonds as the same shall become due, and the redemption
price or the purchase price of bonds retired by call of purchase as therein
provided. Such pledge shall be valid and binding from the time when the
pledge is made; the tolls or other revenues or other moneys so pledged and
thereafter received by the Commission shall immediately be subject to the
lien of such pledge without any physical delivery thereof or further act,
and the lien of any such pledge shall be valid and binding as against all
parties having claims of any kind in tort, contract or otherwise against
the Commission, irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust agreement by which a pledge is cre-
ated need be filed or recorded except in the records of the Commission. The
use and disposition of moneys to the credit of such sinking fund shall be
subject to the provisions of the resolution authorizing the issuance of such
bonds or of such trust agreement. Except as may otherwise he provided
in such resolution or such trust agreement, such sinking fund shall be a
fund for all such bonds without distinction or priority of one over another.

§ 33-255.14. Miscellaneous.—Each turnpike project when construc-
ted and opened to traffic shall be maintained and kept in good condition
and repair by the Commission. Each such project shall also be policed
and operated by such force of police, tolltakers and other operating em-
ployees as the Commission may in its discretion employ.

All private property damaged or destroyed in carrying out the powers
granted by this article shall be restored or repaired and placed in its
original condition as nearly as practicable or adequate compensation made
therefor out of funds provided under the authority of this article.

All counties, cities, towns and other political subdivisions and all
public agencies and commissions of the Commonwealth, notwithstanding
any contrary provision of law, are hereby authorized and empowered to
lease, lend, grant or convey to the Commission at its request upon such
terms and conditions as the proper authorities of such counties, cities,
towns, political subdivisions, agencies or commissions of the Common-
wealth may deem reasonable and fair and without the necessity of any
advertisement, order of court or other action or formality, other than the
regular and formal action of the authorities concerned, any real property
which may be necessary or convenient to the effectuation of the authorized
purposes of the Commission, including public roads and other real property
already devoted to public use.

On or before the thirtieth day of January in each year the Commission
shall make an annual report of its activities for the preceding calendar
year to the Governor and to the General Assembly. Each such report
shall set forth a complete operating and financial statement covering its
operation during the year. The Commission shall cause an audit of its
books and accounts to be made at least once in each year by certified
public accountants and the cost thereof may be treated as a part of the
cost of construction or operation of the project.

_._ Any member, agent or employee of the Commission who contracts
with the Commission or is interested, either directly or indirectly, in any
contract with the Commission or in the sale of any property, either real
or personal, to the Commission shall be punished by a fine of not more
than one thousand dollars or by imprisonment for not more than one
year, or both.

The Commission may, in its discretion, use any part of funds avail-
able for the construction of State highways, in any construction district in
which any project is wholly or partly located, to aid in the payment of the
cost of such project and for the payment, purchase or redemption of
revenue bonds issued in connection with any such project. * The Commis-
sion may also, in its discretion, use any part of funds available for the
maintenance of State highways, in any construction district in which any
project is wholly or partly located, to provide for the operation, mainten-
ance and repair of any such project and for the payment of interest on
revenue bonds issued in connection with any such project. *

§ 33-255.15. Turnpike revenue refunding bonds.—The Commission
is hereby authorized to provide by resolution for the issuance of turnpike
revenue refunding bonds of the Commonwealth for the purpose of refund-
ing any bonds then outstanding which shall have been issued under the
provisions of this article, including the payment of any redemption pre-
mium thereon and any interest accrued or to accrue to the date of redemp-
tion of such bonds, and, if deemed advisable by the Commission, for the
additional purpose of constructing improvements, extensions, or enlarge-
ments of the turnpike project * in connection with which the bonds to be
refunded shall have been issued. * . The issuance of such bonds, the
maturities and other details thereof, the rights of the holders thereof,
and the rights, duties and obligations of the Commission in respect of
the same, shall be governed by the provisions of this article insofar as
the same may be applicable. ,

§ 33-255.16. Transfer to Commonwealth.—When all bonds issued
under the provisions of this article in connection with any turnpike project
* and the interest thereon shall have been paid or a sufficient amount for
the payment of all such bonds and the interest thereon to the maturity
thereof shall have been set aside in trust for the benefit of the bondholders,
such project * if then in good condition and repair, shall become part of
the State Highway System and shall thereafter be maintained by the Com-
mission free of tolls. *