                                 CODE OF VIRGINIA

PROHIBITION OF SALE OR ENCUMBRANCE OF SYSTEM (§ 21-176)

Neither the commission nor any of the counties, cities or towns in whole or in
part embraced within the district shall have power to mortgage, pledge, encumber
or otherwise dispose of any part of the sewage disposal system of a commission,
except such part or parts thereof as may be no longer necessary for the purposes
of the commission, whether the same shall originally have been acquired by such
commission or by one of the counties, cities or towns. The provisions of this
section shall be deemed to constitute a contract with the holders of the bonds
of the commission. The sewage disposal system of a commission shall be exempt
from any and all liability which may be incurred by, or imposed upon, the
commission, or any county, city or town, which, in whole or in part, constitutes
any part of any district.
		However, a commission may sell, lease as lessor, transfer, or dispose of all
or any of its property and facilities in such a manner and upon such terms as
the commission may determine to be in the best interest of the district, on the
condition that the commission meet and discharge all of the requirements of the
bonds issued by the commission, together with all principal, interest, costs and
expenses.

HISTORY: 1938, p. 523; Michie Code 1942, § 1560vv; 1991, c. 549.