CHAPTER 544

An Act to amend and reenact §§ 8, 7, 9 and 14 of Chapter 517 of the
Acts of Assembly of 1958, approved March 29, 1958, and to further
amend the Chapter by adding sections numbered 18(a) and 18, the
amended and new sections relating respectively, to definitions; 18-
suance of revenue bonds; trust agreements to secure such bonds;
contributions by a certain municipality; competing parking facth-
ties; construction of the Chapter. 3 454)

Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:

1. That §§ 3, 7, 9 and 14 of Chapter 517 of the Acts of Assembly of
1958, approved March 29, 1958, be amended and reenacted, and that
the Chapter be further amended by adding sections numbered 13(a) and
18, the amended and new sections being as follows:

Definitions.—As used in this act the following words and terms
shall have the following meanings, unless the context shall indicate another
or different meaning or intent:

(a) The word “Authority” shall mean the Authority created under
the provisions of this act, or, if the Authority shall be abolished, the board,
body or commission succeeding to the principal functions thereof or to
whom the powers given by this act to the Authority shall be given by law.

(a-1) The word “bonds” or the words “revenue bonds” shall mean
revenue bonds, revenue refunding bonds or notes of the Authority issued
under the provisions of this act.

The word “cost” as applied to parking facilities or to extensions
or additions thereto shall include the cost of construction or recon-
struction, the cost of all labor, materials, machinery and equipment, the
cost of all lands, property, rights, easements and interests acquired by the
Authority for such construction or reconstruction or the operation
thereof, the cost of demolishing or removing any buildings or structures
on land so acquired, including the cost of acquiring any lands to which
such buildings or structures may be moved, financing charges, interest

rior to and during construction, and, if deemed advisable by the Author-
ity, for one year after completion of construction, reasonable provision
for working capital, cost of engineering and legal services, cost of plans
and specifications, surveys and estimates of cost and of revenues, admini-
strative expense and such other expenses as may be necessary or incident
to such construction or reconstruction, the financing thereof and the
placing of the parking facilities in operation. Any obligation or expense
incurred by the Authority or by the organizing municipality prior to the
issuance of bonds under the provisions of this act in connection with any
of the foregoing items of cost may be regarded as a part of such cost.

(c) The words “governing body” shall mean the board, commission,
council or other body by whatever name it may be known in which the
general legislative powers of the municipality are vested.

The word “municipality” shall mean the city of Harrisonburg
in the Commonwealth of Virginia.

(e) The words “parking facilities” shall mean and shall include
lots, garages, parking terminals, or other facilities or structures for the
off-street parking of motor vehicles, open to public use for a fee, and may
also include, but without limiting the generality of the foregoing, termi-
nal facilities for trucks and busses, waiting rooms, lockers, and offices
catering primarily to those using such parking facilities, and all facilities
appurtenant thereto and all property, rights, easements and interests re-
lating thereto which are deemed necessary for the construction or opera-
tion thereof; provided, however, the words “parking facilities” shall not
mean or include the sale or dispensing of products used in or for the ser-
vicing of motor vehicles.
Revenue Bonds.—The Authority is hereby authorized to issue
at one time or from time to time, revenue bonds of the Authority for the
purpose of paying the cost of constructing, reconstructing, equipping,
improving, extending or enlarging any one or more parking facilities.
The bonds of each issue 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 * siz per centum * (6%) per
annum, as may be determined by the Authority, and may be made redeem-
able 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 oe attached
thereto, and the manner of execution of the bonds, and shall fix the de-
nomination 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 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 de-
livery. Notwithstanding any of the other provisions 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 this Com-
monwealth. The bonds may be issued in coupon or 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, and for the reconversion into coupon bonds of any
bonds registered as to both principal and interest. The Authority 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 Authority,
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 * (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.

The proceeds of the bonds of each issue shall be used solely for the
purpose for which such bonds shall have been authorized and shall be
disbursed in such manner and under such restrictions, 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 such bonds, by error of estimates or otherwise, shall be
less than such cost, additional bonds may in like manner be issued to pro-
vide the amount of such deficit, and, unless otherwise provided in the
authorizing resolution or in the trust agreement securing such bonds, 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 for the
same purpose.

The resolution providing for the issuance of revenue bonds, and any
trust agreement securing such bonds, may also contain such limitations
upon the issuance of additional revenue bonds as the Authority may deem
proper, and such additional bonds shall be issued under such restrictions
and limitations as may be prescribed by such resolution or trust agreement.

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
provide for the replacement of any bonds which shall become mutilated or
be destroyed or lost.

Bonds may be issued under the provisions of this act without obtain-
ing the consent of any commission, board, bureau or agency of the Com-
monwealth of Virginia or of any political subdivision, and without any
other proceedings or the happening of other conditions or things than
nese proceedings, conditions or things which are specifically required by
this act.

Revenue bonds issued under the provisions of this act shall not be
deemed to constitute a debt of the Commonwealth or of any municipality
or other political subdivision of the Commonwealth or a pledge of the
faith and credit of the Commonwealth or of any municipality or other
political subdivision, but such bonds shall be payable solely from the funds
herein provided therefor and a statement to that effect shall be recited on
the face of the bonds.

§ 9. Trust Agreement.—In the discretion of the Authority, each or
any issue of revenue bonds 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 State. The resolution authorizing the issuance of the bonds or such
trust agreement may pledge the revenues to be received *. In connection
with the issuance of such bonds or in order to secure the payment thereof,
the Authority shall have power under such agreement to mortgage all
or any part of its property, real or personal, then owned or thereafter
acquired, to vest in the trustee thereunder the right to foreclose such
mortgage and to provide the terms and conditions upon which such
trustee or the holders of bonds or any proportion thereof may exercise the
right of foreclosure. Such trust 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 Authority in relation to the construction, reconstruction,
equipment, improvement, maintenance, repair, operation and insurance
of any parking facilities, the fixing and revising of rates, rentals, fees
and charges, and the custody, safeguarding and application of all moneys,
and for the employment of consulting engineers in connection with such
construction, reconstruction, improvement, maintenance and operation. 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. Such resolution or trust
agreement may set forth the rights and remedies of the bondholders
and of the trustee, if any, and may restrict the individual right of action
by bondholders. Such resolution or trust agreement may contain such
other provisions in addition to the foregoing as the Authority may deem
reasonable and proper for the security of the bondholders. Except as
in this act otherwise provided, the Authority may provide for the payment
of the proceeds of the sale of the bonds and the revenues of any parking
facilities or part thereof to such officer, board or depositary as it may
designate for the custody thereof, and for the method of disbursements
thereof, with such safeguards and restrictions as it may determine. All
expenses incurred in carrying out the provisions of such resolution or trust
agreement may be treated as a part of the cost of operation.

All pledges of revenues under the provisions of this act shall be valid
and binding from the time when such pledge is made. Al] such revenues
so pledged and thereafter received by the Authority shall immediately be
subject to the lien of such pledges without any physical delivery thereof
or further action, and the lien of such pledges shall be valid and binding
as against all parties having claims of any kind in tort, contract or other-
wise against the Authority, irrespective of whether such parties have
notice thereof.

§ 13-a. Competing Parking Facilities.—So long as any bonds issued
under the provisions of this act are outstanding, the municipality shall
not construct, operate or maintain any parking facilities competing with
parking facilities of the Authority.

§ 14. Contributions —The municipality is hereby authorized to
make contributions or advances to an Authority which it organizes under
the provisions of this Act from any available moneys * for any purpose
of the Authority, including payment of principal and interest on tts
bonds. The municipality is hereby further authorized to enter into agree-
ments with the Authority obligating the municipality to pay to the Au-
thority any part or all of the receipts from the operation of on-street
parking meters and making such covenants as may be deemed necessary
or desirable to assure the successful and profitable operation of the on-
street parking meters for so long as any bonds of the Authority remain
outstanding.

§ 18. Construction.—This act, being necessary for the welfare of
the Commonwealth and its inhabitants, shall be liberally construed to
effect the purpose thereof.

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