CHAPTER 488

An Act to amend and reenact § 62-106.12 of the Code of Virginia, to pro-
vide for a maximum interest rate of six per centum on bonds issued
by the Virginia State Ports Authority. CH 607]

Approved March 29, 1958

Be it enacted by the General Assembly of Virginia:

1. That § 62-106.12 of the Code of Virginia be amended and reenacted
as follows:

§ 62-106.12. (A) As used in this section and in §§ 62-106.13 through
62-106.18, the words “port facility’ shall mean harbors, seaports and
all facilities used in connection therewith.

The word “cost” as used in this chapter shall embrace the cost of
construction, the cost of the acquisition of all land, rights of way, prop-
erty, rights, easements and interests acquired by the Authority for such
construction, the cost of all machinery and equipment, financing charges,
interest prior to and during construction and, if deemed advisable by the
Authority, for one year after completion of construction, engineering and
legal expenses, cost of plans, specifications, surveys and estimates of cost
and of revenues, other expenses necessary or incident to determining the
feasibility or practicability of constructing any port facility, administrative
expense, the creation of a working capital fund for placing the port
facility in operation, and such other expense as may be necessary or in-
cident to the construction of such port facility, the financing of such con-
struction and the placing of the same in operation.

(B) The Authority is hereby authorized to provide by resolution for
the issuance, at one time or from time to time, of revenue bonds of the
Authority for the purpose of paying all or any part of the cost of any
Authority project for the acquisition, construction, reconstruction or con-
trol of port facilities or of any portion or portions thereof. 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 * siz 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 Authority, and may be
made redeemable before maturity, at the option of the Authority, at such
price or prices and under such terms and conditions as may be fixed by the
Authority prior to the issuance of the bonds. The Authority 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 Executive Director of the Authority or shall
bear his facsimile signature, and the official seal of the Authority or a
facsimile thereof shall be impressed or imprinted thereon and attested by
the secretary and treasurer of the Authority, and any coupons attached
thereto shall bear the facsimile signature of the Executive Director of the
Authority. 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 chapter shall have and are hereby declared to have all
the qualities and incidents of negotiable instruments under the Negoti-
able Instruments Law of the Commonwealth. The bonds may be issued in
coupon or in registered form, or both, as the Authority 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, for the recon-
version into coupon bonds of any bonds registered as to both principal
and interest, and for the interchange of registered and coupon bonds. The
Authority may sell such bonds in such manner, either at public or private
sale, and for such price, as it may determine will best effect the purposes
of this chapter.

The proceeds of the bonds of each issue shall be used solely for the
payment of the cost of acquisition, construction, reconstruction and control
of port facilities or the portion thereof for which such bonds shall have
been issued, and shall be disbursed in such manner and under such restric-
tions, if any, as the Authority 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 de-
posited to the credit of the sinking fund for such bonds, or, if such bonds
shall have been issued for paying the cost of a portion of the project, such
surplus may be applied to the payment of the cost of any remaining por-
tion of the project.

Prior to the preparation of definitive bonds, the Authority may, under
like restrictions, issue interim receipts or temporary bonds, with or with-
out coupons, exchangeable for definitive bonds when such bonds shall have
been executed and are available for delivery. The Authority may also pro-
vide for the replacement of any bonds which shall hecome mutilated or
shall he destroyed or lost. Bonds may be issued under the provisions of this
chapter without obtaining the consent of any department, division, com-
mission, board, bureau or agency of the Commonwealth, and without any
other proceedings or the happening of any other conditions or things than
sp proceedings, conditions or things which are specifically required by

is chapter.