CHAPTER 693

Act creating the Chesapeake Bay Ferry District; providing for the
creation of the Chesapeake Bay Ferry Commission as the governing
board of said district; authorizing the acquisition, construction, opera-
tion and maintenance by the said commission of a project to provide
vehicular and passenger ferry service between the city of Hampton
and the county of Northampton, between the counties of Princess Anne
and Northampton, and between certain other points within the boun-
daries of the said district where such ferry service would form a
connecting link in the system of State highways, and consisting of
such vessels, termini, approaches, buildings and equipment necessary
or convenient for the operation thereof as may be determined by said
commission; conferring powers and imposing duties on said commis-
sion, including the power and authority to acquire by purchase, con-
demnation or gift, any ferry, or the facilities of any ferry line or
ferry service, in whole or in part, within the boundaries of the said
district; authorizing the issuance by the said commission of ferry
revenue bonds of said district, payable solely from earnings, to pay
the cost of such project; providing that no debt of the said district,
of the State or of any county, city, district, or political subdivision
thereof, shall be incurred in the exercise of any of the powers granted
by this Act; providing for the collection of tolls for the payment of
such bonds and for the costs of maintenance, operation and repair of
such project; providing for the execution of a trust indenture to secure
the payment of such bonds without mortgaging or encumbering such
project; authorizing the issuance of revenue bonds; prescribing the
conditions upon which said project shall -reduce tolls; making such
project and bonds exempt from taxation, and prohibiting under certain
conditions, the construction, maintenance or operation of competing
means of transit between points within the boundaries of the said
Chesapeake Bay Ferry District.

fH 801]

Approved April 7, 1954
Be it enacted by the General Assembly of Virginia:

§ 1. Short Title—This act shall be known, and may be cited, as the
ssapeake Bay Ferry Revenue Bond Act.”

§ 2. Definitions.—As used in this act the following words and terms
| have the following meanings:

(a) The word “District” shall mean the Chesapeake Bay Ferry Dis-
, a political subdivision of the State of Virginia, hereinafter created.
(b) The word “Commission” shall mean the Chesapeake Bay Ferry
Commission hereinafter created as a governing body of the District, or if
said Commission shall be abolished, any board, commission or officer suc-
ceeding to the principal functions thereof, or upon whom the powers
given by this act to said Commission shall be given by law.

(c) The word “project”? shall mean a public ferry service over and
across the waters between the city of Hampton and the county of North-
ampton, between the counties of Princess Anne and Northampton, in the
State of Virginia, and between any points within the boundaries of said
District, except as otherwise provided herein, where such ferry service
would form a connecting link in the system of State highways, and shall
include the carrying of vehicular traffic, trucks, passengers, freight, mail,
express, and anything else legally transportable; and provision for the
safety, comfort, convenience and entertainment of such passengers in such
manner as may be usual and customary in the operation of similar ferry
service elsewhere.

(d) The word “ferry” shall be deemed to include not only the vessel
or vessels and equipment necessary and convenient for providing a public
ferry service, but also all property, wharves, docks, slips, rights, easements
and franchises relating thereto and deemed by the Commission to be neces-
sary or convenient for the construction or the operation thereof.

(e) The term “cost of the project’ shall embrace the cost of acquisi-
tion by purchase or condemnation, construction, the cost of all lands,
properties, vessels, docks, wharves, slips, approaches and highway con-
nections, rights, easements and franchises which are deemed necessary
for such construction or for the operation of the project, or the cost of
acquiring all of the capital stock of the corporation or corporations own-
ing said ferry or ferries and the amount to be paid to discharge all of
the obligations of such corporation or corporations in order to vest title
to the ferry in the District, the cost of any improvements ordered prior
to the initial financing under the provisions of this article, provision for
reasonable working capital and a reserve for interest, and shall also
embrace financing charges, interest prior to and during construction and
for one year after completion of construction, cost of traffic estimates and
of engineering data, engineering and legal expenses, court costs and other
expenses involved in or incident to any condemnation proceedings brought
under authority of this act, costs of plans, specifications, surveys, estimates
of cost and revenue, other expenses necessary or incident to determining
the feasibility or practicability of the project, administrative expense, and
such other expenses as may be necessary or incident to the financing herein
authorized, to the acquisition or construction of the project, and to the
placing of the same in operation.

(f{) The word “owner” shall include all persons as defined in § 1-13.19
of the Code of Virginia having any interest or title in and to property,
rights, easements or franchises authorized to be acquired by this act.

General Powers of Commission.—The Chesapeake Bay Ferry
Commission, hereinafter created, is hereby authorized and empowered:

(a) To acquire, establish, construct, operate and maintain the project
hereinafter defined ;

(b) Acquisition or establishment. The commission created by author-
ity of this act may acquire by purchase, condemnation or gift, any ferry
within the boundaries of the Chesapeake Bay Ferry District which forms a
connecting link in the system of State highways, and may purchase all
equipment and other things necessary for the establishment of any new
ferries within the boundaries of said district except as hereinafter pro-
vided to become connecting links in the State highway system whenever
it shall determine such action to be advisable and expedient for the benefit
of the people of this State and of this Chesapeake Bay Ferry District.

§ 4. Bonds not to constitute a debt or pledge of taxing power.—
Revenue bonds issued under the provisions of this act shall not be deemed
to constitute a debt of the District or of the State of Virginia or of any
county, city, district or political subdivision thereof, or a pledge of the
faith and credit of the State or of any county, city, district or political
subdivision thereof, but such bonds shall be payable solely from the funds
herein provided therefor from tolls and revenues. The issuance of revenue
bonds under the provisions of this act shall not directly or indirectly or
contingently obligate the District, the State or any county, city or district
therein or any political subdivision thereof to levy or to pledge any form
of taxation whatever therefor. All such revenue bonds shall contain a
statement on their face substantially to the foregoing effect.

§ 5. Chesapeake Bay Ferry District.—A political subdivision of the
State of Virginia to be known as the ‘‘Chesapeake Bay Ferry District” is
hereby created. The district shall comprise the area now included in the
boundaries of Accomack and Princess Anne Counties, Northampton
County, including the town of Cape Charles, and within the corporate
limits of the cities of Hampton, Newport News, Warwick and Norfolk,
Virginia, and the area of Chesapeake Bay between these political sub-
divisions, and by the name Chesapeake Bay Ferry District may sue and
be sued, and by and through the Chesapeake Bay Ferry Commission
hereinafter created as the governing board thereof, the district may plead
and be impleaded, and contract with, individuals, partnerships, associa-
tions, private corporations, municipal corporations, political subdivisions
of the State of Virginia, and the federal government or any agency
thereof having any interest or title in and to property, rights, easements
or franchises authorized to be acquired by this act.

§ 6. Chesapeake Bay Ferry Commission.—A Commission, to be
known as the “Chesapeake Bay Ferry Commission’, is hereby created as
the governing board of the Chesapeake Bay Ferry District created by this
act. The Commission shall consist of seven members, each of whom shall
be appointed as follows: One member from each of the counties of
Accomack and Northampton who shall be appointed by the Judge of the
Circuit Court for the aforesaid counties; one member from the county of
Princess Anne or the city of Virginia Beach, who shall be appointed by
the Judge of the Circuit Court of the county of Princess Anne; one
member from each the city of Hampton and the city of Warwick, to
be appointed by the Judges of the respective Circuit Courts of the said
cities of Hampton and Warwick; one member from the city of Newport
News, who shall be appointed by the Judge of the Corporation Court
of the said city of Newport News; and one member from the city of
Norfolk who shall be appointed by the Judge of the Corporation Court
of the city of Norfolk. The members of said Commission appointed
under the provisions of this section shall be residents of the counties or
cities from which they are appointed and may be appointed by the
respective judges in term time or vacation.

The original commission shall determine by lot the duration of their
respective terms of office which shall be for one, two, three, four, five, six,
and seven years respectively, and thereafter the appointments shall be for
a period of five years, and in the event of a vacancy occurring the court
involved shall fill such vacancy for the unexpired term. Any member of
the Commission shall be eligible for reappointment. The Commission shall
select a chairman annually from its membership. Within thirty days after
the appointment of the original members of the Commission the commis-
sion shall meet on the call of any member and elect one of its members as
chairman and another as vice-chairman, and the commission shall employ
a secretary and treasurer (who may or may not be a member of the com-
mission) and if not a member of the commission, fix his compensation and
duties. Any member of the commission may be removed from office for
cause by the court appointing him. Each member of the commission,
immediately following his appointment, shall take an oath of office,
prescribed by § 34 of the Constitution of Virginia, before any judge of any
court of record in this State. No member of the commission shall receive
any salary but shall be entitled to expenses and the per diem pay allowed
members of the Highway Commission. Four members of the commission
shall constitute a quorum. The records of the commission shall be public
records. The commission is authorized to do all things necessary or incl-
dental to the performance of its duties and the execution of its powers
under this act. |

§ 7. Incidental powers of the Commission.—Without in any manner
limiting or restricting the general powers granted by this act, the com-
mission shall have power:

(a) To make rules and regulations for the conduct of its business;

(b) To acquire, by purchase or condemnation, in the name of the
District, hold and dispose of personal property, including vessels and
equipment incidental thereto, for the corporate purposes of the District;

(c) To acquire full information to enable it to establish, construct,
maintain and operate the project;

(d) To employ consulting engineers, a superintendent or manager
of the project, and such other engineering, architectural, construction
and accounting experts and inspectors and attorneys and such other
employees as may be deemed necessary, and within the limitations pre-
scribed in this act, to prescribe their powers and duties and fix their
compensation ;

(e) To make and enter into all contracts or agreements, as the com-
mission may determine, which are necessary or incidental to the per-
formance of its duties and to the execution of the powers granted under

is act;

(f) To accept loans and grants of money or materials or property at
any time from the United States of America, or the State of Virginia
or any agency or instrumentality thereof;

(g) To purchase, solely from funds provided under the authority
of this act, such lands, buildings, structures, vessels, docks, wharves,
slips, and any other equipment necessary or convenient to the operation
thereof, rights of way, franchises, easements, and interests in lands,
or the capital stock of corporations owning such assets, deemed by
the commission to be necessary for the construction or operation of
the project, upon such terms and at such prices as may be considered
by it to be reasonable and can be agreed upon between it and the
owner thereof, and to take title thereto in the name of the District.
Whenever a price cannot be agreed upon, or whenever the owner is
legally incapacitated or is absent, or is unable to convey valid title, or
is unknown, the commission is hereby authorized and empowered to
acquire any such property, by condemnation in accordance with and sub-
ject to the provisions of Article 5 of Chapter 1 of Title 33 and of § 25-233
of the Code of Virginia; and the provisions of any and all laws applicable
to the condemnation of property and the power of eminent domain by the
State Highway Commission, under the laws of the State of Virginia,
except as altered or modified by this act shall apply, mutatis mutandis, to
proceedings under this act;

(h) To adopt an official seal and alter the same at its pleasure; and
to make and from time to time amend and repeal by-laws and rules and
regulations not inconsistent with law to carry into effect the powers and
purposes of the commission.

(i) To exercise any power usually possessed by private corporations
performing similar functions, including the right to expend, solely from
funds provided under the authority of this act, such funds as may be
considered by the commission to be advisable or necessary in advertising
its facilities and services to the traveling public.

§ 8. Consent of State to use subaqueous soil of Chesapeake Bay.—
The State of Virginia hereby consents to the use by the commission, in
any manner whatsoever in the performance of its duties hereunder, of
all lands lying under the waters of the Chesapeake Bay which are within
the State and are deemed by the commission to be necessary for the
construction or operation of the project.

§ 9. Revenue Bonds.—The commission is hereby authorized to pro-
vide by resolution, at one time or from time to time, for the issuance of
revenue bonds of the District for the purpose of paying all or a part of
the cost of the project as hereinabove defined. The principal and interest
of such bonds shall be payable solely from the special fund herein pro-
vided 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, payable semiannually, 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 commission, at such price or prices and under such terms
and conditions as may be fixed by the commission prior to the issuance
of the bonds. The principal and interest of such bonds may be made
payable in any lawful medium. The commission shall determine the form
of the bonds, including any interest coupons to be attached thereto, and
the manner of execution of the bonds, and shall fix the denomination or
denominations of the bonds and the place or places of payment of prin-
cipal and interest thereof, which may be at any bank or trust company
within or without the State. In case any officer whose signature shall
appear on the bonds or coupons shall cease to be such officer before the
delivery of such bonds such signature shall nevertheless be valid and suffi-
cient for all purposes the same as if he had remained in office until such
delivery. All revenue bonds issued under the provisions of this act shall
have and are hereby declared to have, as between successive holders, all
the qualities and incidents of negotiable instruments under the nego-
tiable instruments law of the State. The bonds may be issued in coupon
or in registered form, or both, as the commission may determine, and pro-
vision may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest, and for the
reconversion of any bonds registered as to both principal and interest
into coupon bonds. The commission may sell such bonds in such manner
and for such price as it may determine to be for the best interest of the
District, 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, exclud-
ing. however, from such computations the amount of any premium to be
paid on redemption of any bonds prior to maturity. The proceeds of
such bonds shall be disbursed for the purposes for which such bonds shall
have been issued upon requisition of the chairman of the commission
under such restrictions, if any, as the resolution authorizing the issuance
of such bonds or the trust indenture hereinafter mentioned may provide.
If the bonds of a particular issue, by error of estimates, or otherwise,
shall be less than the cost of the project, additional bonds may in like
manner be issued to provide the amount of such deficit and, unless other-
wise provided in the resolution authorizing the issuance of the bonds or
in the trust indenture, shall be deemed to be of the same issue and shall
be entitled to payment from the same fund without preference or prior-
ity of the bonds first issued for the same purpose. If the proceeds of
the bonds of any issue shall exceed the amount required for the purpose
for which such bonds are issued, the surplus shall be paid into the funds
hereinafter provided for the payment of principal and interest of such
bonds. Prior to the preparation of definitive bonds, the commission may,
under like restrictions, issue temporary bonds, with or without coupons,
exchangeable for definitive bonds upon the issuance of the latter. The
commission may also provide for the replacement of any bond which shall
become mutilated or be destroyed or lost. Such revenue bonds may be
issued without any other proceedings or the happening of any other con-
ditions or things than the proceedings, conditions, and things which are
specified and required by this act. ;

The commission is hereby authorized to provide by resolution for the
issuance of revenue refunding bonds of the District for the purpose of
refunding any bonds issued under the provisions of this act and then
outstanding. The issuance of such refunding bonds, the maturities and
other details thereof, the rights of the holders thereof, and the duties of
the commission with respect to same, shall be governed by the foregoing
provisions of this act insofar as the same may be applicable.

Prior to the issuance by the commission of the revenue bonds of the
District under the provisions of this act, each member of the commission
shall give bond payable to the Commonwealth of Virginia, in form
approved by the Attorney General, in such penalty as shall be fixed by
the Governor, with some surety or guaranty company duly authorized to
do business in Virginia and approved by the Governor, as security, condi-
tioned upon the faithful discharge of his duties. The premium of such
bonds shall be considered as part of the cost of the project. .

§ 10. Trust Indenture.—TIn the discretion of the commission each
and any issue of such revenue bonds may be secured by a trust indenture
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 State. Such trust indenture may pledge or assign tolls and
revenues, to be received, but shall not convey or mortgage the project or
any part thereof. Either the resolution providing for the issuance of rev-
enue bonds or such trust indenture may contain such provisions specifying,
defining, protecting, and enforcing the rights and remedies of the bond-
holders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the commission in relation
to the acquisition, construction, improvement, maintenance, operation,
repair and insurance of the project, and the custody, safeguarding, and
application of all moneys, and may also provide that the project shall be
constructed and paid for under the supervision and approval of consulting
engineers employed or designated by the commission and satisfactory to
the original purchasers of the bonds issued therefor, and may also require
that the security given by contractors and by any depository of the pro-
ceeds of the bonds or revenues or other moneys be satisfactory to the pur-
chasers. It shall be lawful for any bank or trust company incorporated
under the laws of this State to act as such depository and to furnish such
indemnifying bonds or to pledge such securities as may be required by the
commission. Such indenture may set forth the rights and remedies of
the bondholders and of the trustee, and may restrict the individual right
of action of bondholders as is customary in trust indentures securing bonds
and debentures of corporations. In addition to the foregoing, such trust
indenture may contain such other provisions as the commission may
deem reasonable and proper for the security of bondholders. All expenses
incurred in carrying out the provisions of such trust indenture may be
treated as a part of the cost of maintenance, operation, and repairs of the
project.

§ 11. Tolls and Revenues.—The commission is hereby authorized to
fix and to revise from time to time tolls or fees for the use of the project
or any part thereof and to charge and collect the same, and to contract
with any person, partnership, association, or corporation desiring the use
of any ferry included in the project, its approaches and appurtenances, or
any part thereof, for placing therein or thereon water, gas, or oil pipe
lines, telephone, telegraph, electric light, or power lines, or for any other
purpose, and to fix the terms, conditions, and rates of charge for such use.

The tolls for the use of the project shall be so fixed and adjusted as
to provide a fund sufficient, with other revenues of such project, to pay
(a) the cost of maintaining, repairing and operating the project unless
such cost shall be otherwise provided for and (b) the bonds, and the
interest thereon as the same shall become due. All tolls and all other
revenue derived from the project, except such part thereof as may be re-
quired to pay the cost of maintaining, repairing and operating the project,
and to provide such reserves therefor as may be provided for in the resolu-
tion authorizing the issuance of the bonds or in the trust indenture, or
such parts thereof as may be required by such resolution or trust indenture,
shall be set aside at such regular intervals as may be provided in such
resolution or such trust indenture in a sinking fund which is hereby
pledged to and charged with the payment of (1) the interest upon such
bonds as such interest shall fall due, (2) the principal of the bonds as the
same fall due, (3) the necessary fiscal agency charges for paying principal
and interest, and (4) any premium upon bonds retired by call or purchase
as herein provided. The use and disposition of such sinking fund shall be
subject to such regulations as may be provided in the resolution author-
izing the issuance of bonds, or in the trust indenture but, except as may
otherwise be provided in such resolution or trust indenture, such sinking
fund shall be a fund for the benefit of all bonds without distinction or
priority of one over another. The moneys in such sinking fund, in accord-
ance with the provisions of the resolution authorizing the issuance of the
bonds or of the trust indenture, shall be applied to the payment of the
interest on and the principal of the bonds and the purchase or redemption
of bonds. All bonds so purchased or redeemed shall forthwith be cancelled
and shall not again be issued.

§ 12. Cessation of Tolls—When the bonds issued for the project
and the interest thereon shall have been paid, or a sufficient amount shall
have been provided for their payment and shall continue to be held for
that purpose, the commission shall cease to charge tolls for the use of the
project and thereafter the project shall be free; provided, however, that
the commission shall thereafter charge tolls for the use of the project in
the event that tolls are required for maintaining, repairing and operating
the project due to the lack of funds from other sources than tolls.

§ 13. Trust Funds.—All moneys received pursuant to the authority
of this act, whether as proceeds from the sale of bonds, as grants or other
contributions, or as revenues and earnings, shall be deemed to be trust
funds, to be held and applied solely as provided in this act. The commission
shall, in the resolution providing for the issuance of revenue bonds or in
the trust indenture, provide for the payment of the proceeds of the sale of
the bonds and the earnings and revenues to be received to any officer who,
or any agency, bank or trust company which shall act as trustee of such
funds and shall hold and apply the same for the purposes hereof, subject
to are regulations as this act and such resolution and trust indenture may
provide.

§ 14. Remedies.—Any holder of bonds issued under the provisions
of this act or any of the coupons appertaining thereto, and the trustee
under the trust indenture, if any, except to the extent the rights herein
given may be restricted by resolution passed before the issuance of the
bonds or by the trust indenture, may, either at law or in equity, by suit,
action, mandamus or other proceedings, protect and enforce any and all
rights under the laws of the State of Virginia or granted hereunder and
under such resolution or trust indenture, and may enforce and compel
performance of all duties required by this act or by such resolution or
trust indenture to be performed by the commission or any officer thereof,
including the fixing, charging and collecting of tolls and other charges for
the use of the project.

§ 15. Governmental Function.—It is hereby found, determined and
declared that the creation of the District and the carrying out of its
corporate purposes is in all respects for the benefit of the people of this
State and is a public purpose and that the District and the commission
will be performing an essential governmental function in the exercise of
the powers conferred by this act, and the State covenants with the holders
of the bonds issued under the provisions of this act that the District shall
not be required to pay any taxes or assessments upon any of the property
acquired by it or under its jurisdiction, control, possession or supervision
or upon its activities in the operation and maintenance of the project or
upon any revenues therefrom and the project and the bonds issued in
connection therewith and the income derived therefrom shall be exempt
from all State, municipal and local taxation.

§ 16. Bonds Eligible for Investment.—Bonds issued by the District
under the provisions of this Article are hereby made securities in which
all public officers and public bodies of the Commonwealth and its political
subdivisions, all insurance companies, trust companies, banking associa-
tions, investment companies, executors, administrators, trustees and
other fiduciaries may properly and legally invest funds, including capital
in their control or belonging to them. Such bonds are hereby made securi-
ties which may properly and legally be deposited with and received by
any State or municipal officer or any agency or political subdivision of
the Commonwealth for any purpose for which the deposit of bonds or
obligations is now or may hereafter be authorized by law.

§ 17. No Competitive Facility—No franchise, rights or privileges
shall be granted or authorized by the State of Virginia or by any political
subdivision or court thereof for the establishment, acquisition or construc-
tion, maintenance or operation of any ferry within the boundaries of the
Chesapeake Bay Ferry District, or to any competing bridge or tunnel from
the Eastern Shore to Hampton, or from the Eastern Shore to Princess
Anne County, and no such facility shall be constructed or established
hereafter to provide means of transit within the boundaries of the
Chesapeake Bay Ferry District, except by the Commission created by this
act to govern said district so long as any bonds issued under this act
shall remain outstanding or until provision shall first be made for
the payment of the principal and interest upon all such bonds; provided,
however, that such prohibition shall not apply to any ferry which may
hereafter be established for the exclusive transportation of railroad cars,
or of railroad passengers holding through tickets, or to projects hereto-
fore authorized under the State Revenue Bond Act of 1940, as amended.

§ 18. Act liberally construed.—This act, being necessary for the
welfare of the State and its inhabitants, shall be liberally construed to
effect the purposes thereof.

§ 19. Constitutional Construction.—The provisions of this act are
severable and if any of its provisions shall be held unconstitutional by any
court of competent jurisdiction, the decision of such court shall not affect
or impair any of the remaining provisions of this act. It is hereby declared
to be the legislative intent that this act would have been adopted had suck
unconstitutional provisions not been included therein.
2. Be it further enacted, that all acts and parts of acts, general, special,
private and local, inconsistent with the provisions of this act are hereby
repealed to the extent of such inconsistency.

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