CHAPTER 485

An Act to amend and reenact §§ 88-238, 33-240 as amended, and $8-255.7
as amended, of the Code of Virginia, so as to provide a maximum
interest rate of six per centum on bonds issued under the State Rev-
enue Bond Act and bonds issued to finance State turnpike projects.

[H 604]
Approved March 29, 1958

Be it enacted by the General Assembly of Virginia:

1. That §§ 38-288, 833-240 as amended, and 83-255.7 as amended, of the
Code of Virginia, be amended and reenacted as follows:

§ 33-238. The bonds of such issue shall be dated, shall bear interest
at such rate or rates not exceeding * six per centum per annum, payable
semiannually and 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 Com-
mission, 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 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. The bonds shall be signed by the State High-
way Commissioner and the official seal of the Commission shall be affixed
thereto and attested by the secretary of the Commission and any coupons
attached thereto shall bear the facsimile signatures of the State Highway
Commissioner. 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 sufficient for all
purposes the same as if he had remained in office until such delivery. All
revenue bonds issued under the provisions of this article shall have and
are hereby declared to have, as between successive holders, all the qualities
and incidents of negotiable instruments under the negotiable instruments
law of the State. Such bonds and the income thereof shall be exempt from
all taxation within the State. The bonds may be issued in coupon or
in registered form, or both, as the Commission may determine, and provi-
sion may be made for the registration of any coupon bond 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.
Prior to the preparation of definite bonds, the Commission may, under
like restrictions, issue temporary bonds with or without coupons, exchange-
able 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.

§ 33-240. The Commission may sell such bonds in such manner and
for such price as it may determine to be for the best interests of the State,
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 * six 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 computations the amount of any premium to be paid on redemp-
tion of any bonds prior to maturity.

_ All bonds heretofore or hereafter issued pursuant to the authority of
this article are hereby made securities in which all public officers an
bodies of this State and all political subdivisions thereof, all insurance com-
panies and associations, all national banks and trust companies, and savings
institutions, including savings and loan associations, in the State, and all
executors, administrators, trustees, and other fiduciaries, both individual
and corporate, may properly and legally invest funds within their control.

_ § 33-255.7. The Commission is hereby authorized to provide by reso-
lution, at one time or from time to time, for the issuance of turnpike rev-
enue bonds of the Commonwealth for the purpose 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 * six 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 Commission, 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 Commission shall deter-
mine 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 Commonwealth. The
bonds shall be signed by the State Highway Commissioner 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 instruments 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 registration 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
or quel 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 restric-
tions, if any, as the Commission may provide in the resolution authorizing
the issuance of such bonds or in the trust agreement hereinafter 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, additional 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. i.

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
pen age proceedings, conditions or things which are specifically required

y this article.