                                 CODE OF VIRGINIA

AUTHORITY TO ISSUE BONDS; LIMITATION OF AMOUNT (§ 21-122)

The governing body of any county in which a sanitary district has been or may
hereafter be created by general or special law shall have power, subject to the
conditions and limitations of this article, to issue bonds of such sanitary
district to an amount in the aggregate of not exceeding eighteen per centum of
the assessed value of all real estate in the district subject to local taxation,
for the purpose of raising the necessary funds to carry into effect any or all
of the purposes specified in Article 1 (§ 21-112.22 et seq.) of Chapter 2 of
Title 21, provided, however, that such limitation of eighteen per centum shall
not apply if the petition required by § 21-123 states the maximum amount of
bonds to be issued, and if such bonds are to be issued for a specific
undertaking from which the sanitary district may derive revenue, but from and
after a period to be determined by the governing body of the county, not
exceeding five years from the date of the election authorized in § 21-123,
whenever and for so long as such undertaking fails to produce sufficient revenue
to pay the cost of operation and administration (including interest on bonds
issued therefor), and the cost of insurance against loss by injury to persons or
property, and an annual amount to be covered into a sinking fund sufficient to
pay, at or before maturity, all bonds issued on account of such undertaking, all
such bonds outstanding shall be included in determining such limitation.

HISTORY: 1946, p. 180; Michie Suppl. 1946, § 1560z1; 1964, c. 165.