CHAPTER 270

An Act to amend and reenact §§ 8, 8-a and 7 as severally amended, of
chapter 22 of the Acts of Assembly of 1946, approved February 18,
1946, which chapter created the “Peninsula Airport Commission,” and
to amend said chapter by adding thereto new sections numbered 15
to 28, inclusive, the amended and new sections relating, respectively,
to general powers of the Commission and to the issuance of revenue
bonds by the Commission; and to repeal §§ 6-A and 18 of Chap 22
of the Acts of Assembly of 1946, relating to the same matters.

[(S 127]
Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:

1. That §§ 3, 3-a and 7 as severally amended, of Chapter 22 of the Acts of
Assembly of 1946, approved February 18, 1946, be amended and reenacted
as follows:

§ 3. The airport commission established hereunder shall have all
powers necessary or convenient to carry out the general purposes of this
act, including the following powers in addition to others herein granted:

(a) To sue and be sued; to adopt a seal and alter the same at pleasure;
to have perpetual succession; and to make and execute contracts and other
instruments necessary or convenient to the exercise of its powers.

(b) To employ such technical experts, and such other officers, agents
and employees as it may require, and to fix their qualifications and duties,
and their compensation within the limits of available funds.

(c) To accept gifts and grants from the State of Virginia or any
political subdivision thereof, and from the United States and any of its
agencies.

(d) To acquire within the territorial limits of the region for which
it is formed, by purchase, lease, gift, condemnation or otherwise, whatever
land may be reasonably necessary for the purpose of establishing, con-
structing, enlarging, maintaining and operating one or more airports or
landing fields.

(e) To acquire, establish, construct, enlarge, improve, maintain,
equip, operate and regulate the use of any airports, air landing fields,
structures, air navigation facilities and other property incidental thereto,
within the area for which it is created.

(f) To construct, install, maintain and operate facilities for the
servicing of aircraft, and for the accommodation of cargo, freight, mail,
express, etc., and comfort of air travelers, and to purchase and sell equip-
ment and supplies as an incident to the operation of its airport facilities.

(g) To determine rates and charges for the use of its airport and
other facilities.

(h) To enforce all rules, regulations and statutes relating to its air-
ports, including airport zoning regulations.

i) To exercise within its area such powers and authority with re-
spect to airports and air navigation facilities as may be conferred by law
upon the governing bodies of the counties and cities of the Commonwealth.

(j) To make and enforce rules and regulations for the management
and regulation of its business and affairs and for the use, maintenance
and operation of its facilities and properties.

(k) To engage directly or through its agents or employees in the
operation for profit of concessions in connection with its airports or other
facilities, including the sale of airplanes and aircraft fuel, or to grant
such privileges and concessions to others.

(1) To comply with the provisions of the laws of the United States
and any rules and regulations made thereunder for the expenditure of
federal moneys in connection with airports, landing fields and air navi-
gation facilities, and to accept, receive and receipt for federal moneys
granted the commission, or granted any of the political subdivisions by
which it is formed, for airport purposes.

(m) To borrow money and to issue bonds, refunding bonds, notes,
certificates or other evidence of indebtedness of the commission.

§ 3-a. In addition to the powers conferred by the preceding section
the commission is hereby empowered to lease, sell or encumber any real
property owned by the commission. *

§ 7. * Subject to the provisions of § 18, if the funds received by
the commission in any year, including money appropriated for its use by
the participating subdivisions, shall exceed its appropriations for such
year, the surplus shall be set aside for capital improvements, extensions
and operational expenses. Whenever any such surplus fund shall amount
to one hundred thousand dollars any additional revenue in any year in
excess of operating costs shall be applied towards repaying proportionately
the participating counties, cities and towns in the amounts contributed by
them to the commission for their appropriations for capital outlay in
establishing airports and airport facilities. Thereafter, any profits derived
from the operation of the commission shall be distributed to the partici-
pating subdivisions in proportion to their respective financial interest
in the operation of the commission, if, within thirty days from the end
of the fiscal year of the commission, any one or more of the participating
subdivisions request such distribution of such profits.

2. That Chapter 22, as amended, of the Acts of Assembly of 1946, ap-
proved February 18, 1946, be amended by adding thereto new sections
numbered 15 to 23, inclusive, as follows:

§$ 15. The commission is hereby authorized to issue bonds from
time to time im tts discretion for the purpose of paying all or any part of
the cost of acquiring, purchasing, constructing, reconstructing, improving
or extending any project and acquiring mecessary land and equipment
therefor. The Commission may issue such types of bonds as it may deter-
mine, including (without limitating the generality of the foregoing) bonds
payable as to principal and interest: (a) from its revenues generally; (6)
exclusively from the income and revenues of a particular project; or (c)
exclusively from the income and revenues of certain designated projects,
whether or not they are financed in whole or in part from the proceeds
of such bonds.

Any such bonds may be additionally secured by a pledge of any grant
or contribution from a participating political subdivision, the Common-
wealth or any political subdivision, agency or instrumentality thereof, any
federal agency or any unit, private corporation, copartnership, association,
or individual, or a pledge of any income or revenues of the commission, or
a mortgage of any project or other property of the commission.

Neither the commissioners nor any person executing the bonds shall be
liable personally on the bonds by reason of the issuance thereof. The bonds
and other obligations of the commission (and such bonds and obligations
shall so state on their face) shall not be a debt of the Commonwealth or
any political subdivision thereof and neither the Commonwealth nor any
political subdivision thereof other than the commission shall be liable
thereon, nor shall such bonds or obligations be payable out of any funds
or properties other than those of the commission. The bonds shall not
constitute an indebtedness within the meaning of any debt limitation or
restriction. Bonds of the commission are declared to be issued for an
essential public and governmental Purpose.

§ 16. Bonds of the commission shall be authorized by resolution and
may be issued in one or more series, shall be dated, shall mature at such
time or times not exceeding forty years from their date or dates and shall
bear interest at such rate or rates not exceeding six per centum (6%) per
annum, as may be determined by the commission, and may be made re-
deemable 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 commission shall de-
termine the form of the bonds, including any interest coupons to be at-
tached 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 principal and interest, which may be at any bank or trust
company within or without the Commonwealth. 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 delivery of such bond, 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.
Nothwithstanding any of the other provisions of this act or any recitals tn
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 registered form or both, as the
commission may determine, and provision may be made for the regis-
tration of any coupon bonds as to principal alone and also as to both prin-
cipal 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, either at public or private sale, and for such price,
as it may determine to be for the best interests of the commission, but no
such sale shall be made at a price so low as to require the payment of
interest on the money received therefor more than six per centum ( 6%)
per annum, computed with relation to the absolute maturity or maturities
of the bonds in accordance with standard tables of bond values, excluding,
however, from such computation the amount of any premium to be paid on
redemption of any bonds prior to maturity.

Prior to the preparation of definitive bonds the commission 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 commission may also pr
vide for the replacement of any bonds which shall become mutilated or all
be destroyed or lost.

Bonds may be issued under the provisions of this act without obtaining
the consent of any commission, board, bureau or agency of the Common-
wealth or of any political subdivision, and without any other proceedings
or the happening of other conditions or things than those proceedings,
conditions or things which are specifically required by this act.

§ 17. In the discretion of the commission any bonds issued under
the provisions of this act may be secured by a trust indenture by way of
conveyance, deed of trust or mortgage of any project or any other property
of the commission, whether or not financed in whole or in part from the
proceeds of such bonds, or by a trust agreement by and between the com-
mission and a corporate trustee, which may be any trust company or
bank having the powers of a ‘trust company within or without the
Commonwealth or by both such conveyance, deed of trust or mortgage
and indenture or trust agreement. Such trust indenture or agreement, or
the resolution providing for the issuance of such bonds may pledge or
assign fees, rents and other charges to be received. Such trust indenture
or 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 be reasonable and proper and not in
violation of law, including covenants setting forth the duties of the com-
mission tn relation to the acquisition of property and the construction,
improvement, maintenance, repair, operation and insurance of any
property of the commission, and the rates of fees, rents and other
charges to be charged, and the custody, safeguarding and application of all
moneys of the commission, and conditions or limitations with respect to the
issuance of additional bonds. It shall be lawful for any bank or trust com-
pany incorporated under the laws of the Commonwealth which may act
as depository of the proceeds of such bonds or of other revenues of the com-
mission to furnish indemnifying bonds or to pledge such securities as
may be required by the commission. Such trust indenture may set forth
the rights and remedies of the bondholders and of the trustee, and may
restrict the individual right of action by bondholders.

In addition to the foregoing, such trust indenture, agreement or
resolution may contain such other provisions as the commission may deem
reasonable and proper for the security of the bondholders.

§ 18. The commission is hereby authorized to fiz, revise, charge and
collect fees, rents and other charges for the use of any facilities. Such
fees, rents and other charges shall be so fixed and adjusted as to provide
a fund sufficient with other revenues to pay; first, the cost of maintaining,
repairing and operating the facilities, and second, the principal or any
interest on such bonds as the same shall become due and payable and
third, to create reserves for such purposes and for other purposes of the
commission. Such fees, rents and charges shall not be subject to super-
vision or regulation by any commission, board, bureau or agency of the
Commonwealth or any such participating political subdivision. The fees,
rents and other charges received by the commission, except such part
thereof as may be necessary to pay the 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
indenture or agreement securing the same, shall be set aside at such
regular intervals as may be provided in such resolution or trust indenture
or agreement in a sinking fund which is hereby pledged to, and charged
with, the payment of and the interest on such bonds as the same shall
become due, and the redemption price or the purchase price of such
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 fees,
rents and charges 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 indenture
by which a pledge is created 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 au-
thorizing the issuance of such bonds or of such trust indenture or agree-
ment. Except as may otherwise be provided in such resolution or such
trust indenture or agreement, such sinking fund shall be a fund for all
such bonds without distinction or priority of one over another.

§ 19. All moneys received pursuant to the authority of this act,
whether as proceeds from the sale of bonds or as revenues, shall be deemed
to be trust funds to be held and applied solely as provided in this act.

§ 20. Any holder of bonds, notes, certificates or other evidences of
borrowing issued under the provisions of this act or of any of the coupons
appertaining thereto, and the trustee under any trust indenture or agree-
ment, except to the extent of the rights herein given may be restricted by
such trust indenture, or 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 indenture or agreement or the resolution authoriz-
ing the issuance of such bonds, notes or certificates, and may enforce and
compel the performance of all duties required by this act or by such trust
indenture or agreement or resolution to be performed by the commission or
by any officer or agent thereof, including the fixing, charging and collection
of fees, rents and other charges.

§ 21. The exercise of the powers granted 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 promotion of their safety, health,
welfare, convenience and prosperity, and as the operation and maintenance
of any project which the authority is authorized to undertake will con-
stitute the performance of an essential governmental function, the commis-
sion shall not be required to pay any taxes or assessments upon any facilt-
ties acquired and constructed by it under the provisions of this act; and the
bonds, notes, certificates or other evidences of debt issued under the pro-
visions 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 political subdivision thereof. _

§ 22. Bonds issued by the commission under the provisions of thts
act are hereby made securities in which all public officers and public bodtes
of the Commonwealth and its political subdivisions, all insurance com-
panies, trust companies, banking associations, investment companies, ex-
ecutors, 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 securities 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 obligation ts now or may hereafter be author-
aed by law. © .

—§ 28. This act shall constitute full and complete authority, without
regard to the provisions of any other law, for the doing of the acts and
things herein authorized, and shall be liberally construed to effect the pur-
poses hereof. The provisions of this act are severable, and if any of its
provisions shall be held unconstitutional by any court of competent juris-
diction, the decision of such court shall not affect or impair any of the
other provisions of this act.

2. §§ 6-A and 13 of Chapter 22 of the Acts of Assembly of 1946 are
repealed.