21-127.1 - Borrowing in anticipation of bond issue. - Virginia Statutes

§ 21-127.1. Borrowing in anticipation of bond issue.

(a) In anticipation of the issuance of bonds under the provisions of thischapter and of the receipt of the proceeds of sale of such bonds, thegoverning body may on behalf of the sanitary district borrow money for thepurpose for which such bonds have been authorized and within the maximumauthorized amount of the bond issue. Each such loan shall mature and be paidwithin two years from the date of its original issue; provided, that on orafter such maturity, any loan now outstanding or hereafter made may beextended from time to time, provided, further, that no such extension shallmature and be paid later than five years from the date of the original issueof said loan. The governing body may, in its discretion, retire any suchloans by means of current revenues, special assessments, or other funds, inlieu of retiring them by means of bonds; provided that the maximum amount ofbonds that has been authorized shall be reduced by the amount of such loansretired in such manner.

(b) Negotiable notes or other obligations shall be issued for all moneysborrowed under subsection (a). Such notes or other obligations may be renewedfrom time to time and money may be borrowed upon notes or other obligationsfrom time to time for the payment of any indebtedness evidenced thereby, butall such notes or other obligations shall mature within the time limited bysaid subsection (a). The issuance of such notes or other obligations andother details thereof shall be governed by the provisions of this chapterwith respect to bonds insofar as the same may be applicable.

(c) All such notes or other obligations heretofore issued on behalf of asanitary district and proceedings had in connection therewith which conformto this section are hereby ratified, validated and confirmed and declared tobe legal and as fully binding obligations as if issued under this section.

(1966, c. 189; 1970, c. 124.)