                                 CODE OF VIRGINIA

PAYMENT OF INTEREST ON AND MAINTENANCE OF SINKING FUND FOR TERM BONDS; TAX LEVY;
WHAT CONSTITUTES &#8220;TERM BONDS&#8221; AND &#8220;SERIAL BONDS.&#8221; (§
21-137.1)

When term bonds have been issued the net revenue derived from the operation of
such systems shall be set apart by the said board to pay the interest on the
bonds so issued or to be issued, and to create a sinking fund to redeem the
principal thereof at maturity. The board of supervisors is hereby authorized and
empowered to apply any part or all of said sinking fund to the payment, if
redeemable by their terms, or to the purchase of any such bonds, at any time,
and all bonds so paid off or purchased by the board of supervisors shall be
immediately cancelled, and shall not be reissued. The board of supervisors is
authorized and empowered to invest all accumulations of money to the credit of
the sinking fund in bonds of the United States, of the Commonwealth of Virginia,
or of any county, city or town of the Commonwealth of Virginia, or to lend out,
upon real estate security, the loan not to exceed fifty per centum of the
assessed value of such real estate, or deposit in bank at interest, all
accumulations of money to the credit of the sinking fund and to collect and
reinvest the same and the interest accruing thereon from time to time, so often
as is necessary or expedient, until the bonds become subject to call; provided
that no money to the credit of the sinking fund shall be loaned out or deposited
or invested by the board of supervisors unless such loan, deposit or investment
is first approved by the circuit court of the county, or the judge in vacation,
and the form of the security be examined and approved by the attorney for the
Commonwealth of the county, which approval shall be entered of record in the
order book of the court.
		The treasurer shall not be liable for any funds herein provided for that are
lost while on deposit made by order of the board of supervisors with any bank or
banks, or when invested in any real estate security as provided herein, but the
board of supervisors may require of any such bank a bond, with corporate or
other surety, to secure such deposit, or may require a pledge of securities to
secure such deposits as provided in §§ 58.1-3158 and 2.2-4400.
		The board of supervisors shall, if necessary for the payment of interest on
the bonds or to increase the sinking fund provided for hereunder, levy an annual
tax upon all property in such sanitary district subject to local taxation to pay
such interest and to make payments into such sinking fund. For the purposes of
this section and § 21-137.2, the words &#8220;serial bonds&#8221; and
&#8220;term bonds&#8221; shall have the respective meanings customarily given
them in the municipal bond market. A finding made by the board of supervisors
that an issue of bonds comprises term bonds or serial bonds, or that specified
portions thereof comprise term bonds or serial bonds, as the case may be, shall
be conclusive for all purposes of this section and § 21-137.2.

HISTORY: 1972, c. 236.