21-137.1 - Payment of interest on and maintenance of sinking fund for term bonds; tax levy; what constitutes "term bonds" and "serial bonds.". - Virginia Statutes

§ 21-137.1. Payment of interest on and maintenance of sinking fund for termbonds; tax levy; what constitutes "term bonds" and "serial bonds.".

When term bonds have been issued the net revenue derived from the operationof such systems shall be set apart by the said board to pay the interest onthe bonds so issued or to be issued, and to create a sinking fund to redeemthe principal thereof at maturity. The board of supervisors is herebyauthorized and empowered to apply any part or all of said sinking fund to thepayment, 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 ofsupervisors shall be immediately cancelled, and shall not be reissued. Theboard of supervisors is authorized and empowered to invest all accumulationsof money to the credit of the sinking fund in bonds of the United States, ofthe Commonwealth of Virginia, or of any county, city or town of theCommonwealth of Virginia, or to lend out, upon real estate security, the loannot to exceed fifty per centum of the assessed value of such real estate, ordeposit in bank at interest, all accumulations of money to the credit of thesinking fund and to collect and reinvest the same and the interest accruingthereon from time to time, so often as is necessary or expedient, until thebonds become subject to call; provided that no money to the credit of thesinking fund shall be loaned out or deposited or invested by the board ofsupervisors unless such loan, deposit or investment is first approved by thecircuit court of the county, or the judge in vacation, and the form of thesecurity be examined and approved by the attorney for the Commonwealth of thecounty, which approval shall be entered of record in the order book of thecourt.

The treasurer shall not be liable for any funds herein provided for that arelost while on deposit made by order of the board of supervisors with any bankor 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, withcorporate or other surety, to secure such deposit, or may require a pledge ofsecurities 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 onthe bonds or to increase the sinking fund provided for hereunder, levy anannual tax upon all property in such sanitary district subject to localtaxation to pay such interest and to make payments into such sinking fund.For the purposes of this section and § 21-137.2, the words "serial bonds"and "term bonds" shall have the respective meanings customarily given themin the municipal bond market. A finding made by the board of supervisors thatan issue of bonds comprises term bonds or serial bonds, or that specifiedportions 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.

(1972, c. 236.)