CHAPTER 506

An Act providing for the construction, maintenance, repair and operation
of a bridge project from a point or points on Smith Island off the
southeastern shore of Northampton County, Virginia, to a point or
points on the mainland in said County, including beach facilities inci-
dental to such project; creating a political subdivision of the Com-
monwealth to be known as the Smith Island Bridge Authority and
defining its powers and duties; granting to the Authority power to
acquire necessary real and personal property and to exercise the
power of eminent domain; providing for financing the construction of
such project by the issuance of revenue bonds of the Authority, pay-
able solely from tolls and other revenues; authorizing the issuance of
revenue refunding bonds; providing that no debt of the Common-
wealth 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 and other revenues to pay
such bonds and the interest thereon and the cost of maintenance,
repair and operation of such project; exempting from taxes and
assessments such project and such bonds and the income therefrom;
providing for the execution of a trust agreement to secure the pay-
ment of such bonds without mortgaging or encumbering such project;
and prescribing the powers and duties of the Authority in connection
with the foregoing and the rights and remedies of the holders of
bonds issued under the provisions of this Act. ' '

H 418

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:
1. § 1. Definitions.—As used in this Act the following words and term
shall have the following meanings, unless the context shall indicate another
or different meaning or intent:
(a) The word “Authority” shall mean the Smith Island Bridge
Authority hereinafter created or, if the Authority shall be abolished, the
board, body, commission or agency succeeding to the principal functions
thereof or upon whom the powers given by this Act to the Authority shall
be conferred by law.

(b) The word “project” shall mean a bridge or bridges constructed
by the Authority under the provisions of this Act extending from a point
or points on Smith Island off the southeastern shore of Northampton
County, Virginia, to a point or points on the mainland in said County to
connect with a public highway or highways, together with all necessary
and convenient approaches, roads and streets used in connection with such
bridge and bridges and beach facilities convenient to such roads and

reets.

(c) The term “cost of the project’ shall embrace the cost of con-
struction, landscaping and conservation, the cost of acquisition of all land,
rights of way, property, rights, easements and interests acquired by the
Authority for the construction and operation of the project, the cost of
demolishing or removing any buildings or structures on land so acquired,
including the cost of acquiring any land to which such buildings or struc-
tures may be moved, the cost of all machinery and equipment, financing
charges, interest prior to and during construction and, if deemed advisable
by the Authority for a period not exceeding one year after completion of
construction, cost of traffic estimates and of engineering and legal serv-
ices, plans, specifications, surveys, estimates of cost and of revenues, pro-
vision for working capital and a reserve for interest, other expenses neces-
Sary or incident to determining the feasibility or practicability of con-
structing the project, administrative expenses, and such other expenses
as may be necessary or incident to the construction of the project, the
financing of such construction and the placing of the project in operation.
Any obligation or expense incurred by the State Highway Commission
for traffic surveys, borings, preparation of plans and specifications, and
other engineering services in connection with the construction of the
project shall be regarded as a part of the cost of such project and shall be
reimbursed to the State Highway Commission out of the proceeds of the
revenue bonds issued for the project as hereinafter authorized.

(d) The word “bonds” or the words “revenue bonds” shall mean
revenue bonds or revenue refunding bonds of the Authority issued under
the provisions of this Act.

(e) The word “owner” shall include all individuals, copartnerships,
associations or corporations and also municipalities, political subdivisions
and all public agencies and instrumentalities having any title or interest
in any property, rights, easements and interests authorized to be acquired
by this Act.

§ 2. Credit of Commonwealth and Political Subdivisions Not Pledged.
—Revenue bonds issued under the provisions of this Act shall not be
deemed to constitute a debt of the Commonwealth of Virginia or of any
county, city, district or political subdivision thereof, or a pledge of the
faith and credit of the Commonwealth 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 Commonwealth 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.

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

§ 3. Smith Island Bridge Authority—There is hereby created and
constituted a political subdivision of the Commonwealth to be known as
the “Smith Island Bridge Authority’. The exercise by the Authority of
the powers conferred by this Act in the construction, operation and main-
tenance of the project authorized by this Act shall be deemed and held to
be the performance of an essential governmental function.

The Authority shall consist of five members, all of whom shall be
appointed by the judge of the Circuit Court of Northampton County and
at least three of whom shall be residents of said County. Two of the
members of the Authority first appointed shall continue in office for terms
expiring on June 30, 1964, two for terms expiring on June 30, 1963, and
one for a term expiring on June 30, 1962, the term of each such member
to be designated by said judge of said Circuit Court and to continue until
his successor shall be duly appointed and qualified. The successor of each
such member shall be appointed for a term of five years and until his
successor shall be duly appointed and qualified, except that any person
appointed to fill a vacancy shall serve only for the unexpired term. Any
member of the Authority shall be eligible for reappointment. Members of
the Authority shall be subject to removal from office in like manner as
are state, county, town and district officers under the provisions of
§§ 15-500 to 15-503, inclusive, of the Code of Virginia, 1950. The Author-
ity shall annually elect one of its members as chairman and another as
vice chairman and shall also elect annually a secretary-treasurer, who may
or may not be a member of the Authority.

The secretary-treasurer shall keep a record of the proceedings of the
Authority and shall be custodian of all books, documents and papers filed
with the Authority and of the minute book or journal of the Authority
and of its official seal. He shall have authority to cause copies to be made
of all minutes and other records and documents of the Authority and to
give certificates under the official seal of the Authority to the effect that
such copies are true copies, and all persons dealing with the Authority
may rely upon such certificates.

Three members of the Authority shall constitute a quorum and the
affirmative vote of three members shall be necessary for any action taken
by the Authority. No vacancy in the membership of the Authority shall
impair the right of a quorum to exercise all the rights and perform all the
duties of the Authority.

Before the issuance of any revenue bonds under the provisions of
this Act the secretary-treasurer of the Authority shall execute a surety
bond in the penal sum of fifty thousand dollars, such surety bond to be
conditioned upon the faithful performance of the duties of his office, to
be executed by a surety company authorized to transact business in the
Commonwealth as surety and to be approved by the attorney general and
filed in the office of the secretary of the Commonwealth.

The members of the Authority shall be entitled to reimbursement for
their expenses incurred in attendance upon the meetings of the Authority
or while otherwise engaged in the discharge of their duties. Each member
shall also be paid the sum of twenty dollars per day for each day or portion
thereof during which he is engaged in the performance of his duties, with
the maximum payable to any one member in any one calendar year of
fifteen hundred dollars.

§ 4. General Grant of Powers.—The Authority is hereby authorized
and empowered:

(a) to adopt by-laws for the regulation of its affairs and the conduct
of its business;

(b) to adopt an official seal and alter the same at pleasure;
(c) to determine the location, subject to the approval of the State
Highway Commission, of the project, to determine, in its discretion and
without reference to any other provisions of any state law, the design
standards and the materials of construction, and to construct, maintain.
repair and operate the project;

) to issue revenue bonds of the Authority for any of its purposes.
payable solely from the tolls and revenues pledged for their payment, and
to refund its bonds, all as provided in this Act;

(e) to fix and revise from time to time and charge and collect tolls.
rates, fees, rentals and other charges for the use of the project;

) to acquire, hold and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this Act;

(g) to employ, in its discretion, consulting engineers, attorneys, ac-
countants, construction and financial experts, superintendents, managers,
and such other employees and agents as may be necessary in its judgment,
and to fix their compensation: ;

(h) to construct grade separations at intersections of the project with
public highways, streets or other public ways or places, and to change and
adjust the lines and grades thereof so as to accommodate the same to the
design of such grade separation: the cost of such grade separations and
any damage incurred in changing and adjusting the lines and grades of
such highways, streets, ways and places shall be ascertained and paid by
the Authority as a part of the cost of the project:

(1) to enter upon any lands, waters and premises for the purpose of
making such surveys, soundings, borings and examinations as the Authority
may deem necessary or convenient for its purposes, and such entry shall
not be deemed a trespass, nor shall an entry for such purposes be deemed
an entry under any condemnation proceedings; provided, however, the
Authority shall pay any actual damage resulting to such lands, water and
premises as a result of such entry and activities as a part of the cost of
the project;

(j) to sue and be sued in its own name, plead and be impleaded;

(k) 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 Act; and

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

§ 5. Acquisition of Property—(a) The Authority is hereby author-
ized and empowered to acquire by purchase solely from funds provided
under the provisions of this Act, such lands, structures, property, rights,
rights of way, franchises, easements and other interests in lands, including
lands lying under water and riparian rights, as it may deem necessary or
convenient for the construction and operation of the project, upon such
lerms and at such prices as may be considered by it to be reasonable and
can be agreed upon between it and the owner thereof.

All public agencies and commissions of the Commonwealth, with the
approval of the Governor, and the county of N orthampton, notwithstand-
ing any contrary provision of law, are hereby authorized and empowered
(0 lease, lend, grant or convey to the Authority at its request upon such
erms and conditions as may be mutually agreed upon, without the neces-
sity for any advertisement, order of court or other action or formality, any
real property which may be necessary or convenient to the effectuation of
he authorized purposes of the Authority, including public highways and
ther real property already devoted to public use.

(b) The Authority is authorized and empowered to acquire by the
exercise of the power of eminent domain limited to the definition of
‘project” as set forth herein, any lands, property, rights, rights of
way, franchises, easements and other property, including public lands.
parks, playgrounds, reservations, highways or parkways, or parts thereof
or rights therein, of any person, copartnership, association, public serv-
ice, public utility or other corporation, or of the county, deemed neces-
sary or convenient for the construction or the efficient operation of the
project or necessary in the restoration, replacement or relocation of public
or private property damaged or destroyed, whenever a reasonable price
cannot be agreed upon or whenever the Authority cannot agree on the terms
of purchase or settlement with the owner or owners because of the in-
capacity of such owner or owners or because of the inability to agree on
the compensation to be paid or other terms of settlement or purchase, or
because such owner or owners are nonresidents of the Commonwealth, or
are unknown, or are unable to convey valid title to such property. Such
proceedings shall be in accordance with and subject to the provisions of
any and all laws of the Commonwealth applicable to the exercise of the
power of eminent domain in the name of the State Highway Commissioner
and subject to the provisions of § 25-233 of the Code of Virginia, 1950,
as fully as if the Authority were a corporation possessing the power of
eminent domain; provided, however, that title to any property condemned
by the Authority shall immediately vest in the Authority, and the Authority
shall be entitled to the immediate possession of such property upon the
deposit with the clerk of the court in which such condemnation proceedings
are originated, of the total amount of the appraised price of the property
and court costs and fees as provided by said laws, notwithstanding that any
of the parties to such proceedings shall appeal from any decision in such
condemnation proceedings. Whenever the Authority shall make such
deposit in connection with any condemnation proceeding, the making of
such deposit shall not preclude the Authority from appealing any decision
rendered in such proceedings. Upon the deposit with the clerk of the court
of the appraised price, any person or persons entitled thereto may, upon
petition to the court, be paid his or their pro rata share of 90% of such
appraised price. The acceptance of such payment shall not preclude such
person or persons from appealing any decision rendered in such proceed-
ings. If the appraisement is greater or less than the amount finally deter-
mined by the decision in such proceeding or by an appeal, the amount of
the increase or decrease shall be paid by or refunded to the Authority.

The terms “appraised price’ and “appraisement” as used in this
section mean the value determined by two competent real estate appraisers
appointed by the Authority for such purposes.

The acquisition of any such property by condemnation or by the
exercise of the power of eminent domain shall be and is hereby declared
to be a public use of such property.

(c) Title to any property acquired by the Authority shall be taken in
the name of the Authority.

(d) In any eminent domain proceedings the court having jurisdiction
of the suit, action or proceeding may make such orders as may be just to
the Authority and to the owners of the property to be condemned and may
require an undertaking or other security to secure such owners against
any loss or damage by reason of the failure of the Authority to accept and
pay for the property, or by reason of the taking of property occupied by
such owners, but neither such undertaking or security nor any act or
obligation of the Authority shall impose any liability upon the Common-
ie or upon any county, or other political subdivision of the Common-
wealth.

(e) If the owner, lessee or occupier of any property to be condemned
or otherwise acquire shall refuse to remove his property therefrom or
give up possession thereof, the Authority may proceed to obtain possession
In any manner provided by law.

( e Commonwealth hereby consents to the use of any lands or
property owned by the Commonwealth, including lands lying under water,
which are deemed by the Authority to be necessary for the construction or
operation of the project.

§ 6. Revenue Bonds.—The Authority is hereby authorized to pro-
vide 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 the 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 (6%) 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 determine the form and the
manner of execution 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 Common-
wealth. In case any officer whose signature or a facsimile of whose signa-
ture 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. Notwithstanding any other provision
of this Act or any recitals in any bonds issued under the provisions of this
Act, all such bonds shall be deemed to be negotiable instruments under
the laws 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 reconversion 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 negotiated sale,
ane such price, as it may determine will best effect the purposes of
this Act.

The proceeds of the bonds shall be used solely for the payment of the
cost of the project, and shall be disbursed in such manner and under such
restrictions, if any, as the Authority may provide in the resolution author-
izing 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 pro-
ceeds 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 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 become mutilated or
shall be destroyed or lost. Bonds may be issued under the provisions of
this Act 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 those proceedings, conditions or things which are specifically re-
quired by this Act.

§ 7. Trust Agreement.—In the discretion of the Authority any
bonds issued under the provisions of this Act may be secured by a trust
agreement by and between the Authority 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 reso-
lution 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
the project or any part thereof. Such trust agreement or resolution pro-
viding for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders as
may be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the Authority in relation to the
acquisition of property and the construction, improvement, maintenance,
repair, operation and insurance of the project, 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 such indemnifying bonds or to pledge
such securities as may be required by the Authority. 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 Authority may deem reason-
able and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of such trust agreement or resolution may
be treated as a part of the cost of the operation of the project.

§ 8. Revenues.—The Authority is hereby authorized to fix, revise,
charge and collect tolls for the use of the project and the different parts
or sections thereof, and to contract with any person, partnership, associa-
tion 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, and to fix the terms, conditions,
rents and rates of charges for such use. Such tolls shall be so fixed and
adjusted in respect of the aggregate of tolls from the project as to pro-
vide a fund sufficient with other revenues, if any, to pay (a) the cost of
maintaining, repairing and operating such 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 commission, board, bureau or agency
of the Commonwealth or of any municipality, county or other political
subdivision of the Commonwealth. The tolls and all other revenues derived
from the project, 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 pur-
chase price of bonds retired by call or purchase as therein provided. Such
pledge shall be valid and binding from the time when the pledge is made;
the tolls and other revenues or other moneys so pledged and thereafter
received by the Authority 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 Authority,
irrespective of whether such parties have notice thereof. Neither the reso-
lution nor any trust agreement by which a pledge is created need be filed
or recorded except in the records of the Authority. The use and disposi-
tion 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 be provided in such reso-
lution or such trust agreement, such sinking fund shall be a fund for all
such bonds without distinction or priority of one over another.

§ 9. Trust Funds.—All moneys received pursuant to the provi-
sions of this Act, whether as proceeds from the sale of bonds or as reve-
nues, shall be deemed to be trust funds to be held and applied solely as pro-
vided in this Act. The Authority shall, in the resolution authorizing the
bonds or in the trust agreement securing such bonds, provide for the pay-
ment of the proceeds of the sale of the bonds and the revenues to be re-
ceived to a trustee, which shall be any trust company or bank having the
powers of a trust company within or without the Commonwealth, which
shall act as trustee of the funds, and hold and apply the same to the pur-
poses of this Act, subject to such regulations as this Act and such resolu-
tion or trust agreement may provide. The trustee may invest and reinvest
such funds in such securities as may be provided in the resolution author-
izing the bonds or in the trust agreement securing such bonds.

§ 10. Remedies.—Any holder of bonds issued under the provisions
of this Act or of any of the coupons appertaining thereto, and the trustee
under any trust agreement, except to the extent the rights herein given,
may be restricted by such trust agreement, may either at law or in equity,
by suit, action, injunction, mandamus or other proceedings, protect and
enforce any and all rights under the laws of the Commonwealth or granted
by this Act or under such trust agreement or the resolution authorizing
the issuance of such bonds and may enforce and compel the performance
of all duties required by this Act or by such agreement or resolution to be
performed by the Authority or by any officer or agent thereof, including
the fixing, charging and collection of tolls.

§ 11. Exemption from Taxation.—The exercise of the powers grant-
ed by this Act shall be in all respects for the benefit of the inhabitants of
the Commonwealth, for the increase of their commerce, and for the pro-
motion of their safety, health, welfare, convenience and prosperity, and
as the operation and maintenance of the project by the Authority will
constitute the performance of essential governmental functions, the Au-
thority shall not be required to pay any taxes or assessments upon the
project or any property acquired or used by the Authority under the pro-
visions of this Act or upon the income therefrom; and the bonds issued
under the provisions of this Act, their transfer and the income therefrom,
including any profit made on the sale thereof, shall at all times be free
and exempt from taxation by the Commonwealth and by any municipality,
county or other political subdivision thereof.

§ 12. Revenue Refunding Bonds.—The Authority is hereby author-
ized to provide by resolution for the issuance of its revenue refunding
bonds for the purpose of refunding any bonds then outstanding which shall
have been issued under the provisions of this Act, including the payment
of any redemption premium thereon and any interest accrued or to accrue
to the date of redemption of such bonds, and, if deemed advisable by the
Authority, for the additional purpose of constructing improvements, ex.
tensions or enlargements of the project. 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 Authority in respect of the same
shall be governed by the provisions of this Act in so far as the same may
be applicable.

§ 13. Transfer to Commonwealth.—When all bonds issued under the
provisions of this Act and the interest thereon have been paid or a sufficient
amount for the payment of all such bonds and the interest to the maturity
thereof have been set aside in trust for the benefit of the bondholders, the
project shall become a part of the state highway system, if then in good
condition and state of repair acceptable to the State Highway Commission,
and shall thereafter be operated and maintained by the Commission, or
its successor agency, free of tolls.

§ 14. Act Liberally Construed.—This Act, being necessary for the
welfare of the Commonwealth and its inhabitants, shall be liberally con-
strued to effect the purposes thereof. ,

§ 15. 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 such
unconstitutional provisions not been included therein.

§ 16. Inconsistent Laws Inapplicable.—All other general or special

laws inconsistent with any provision of this Act are hereby declared to be
inapplicable to the provisions of this Act.