CHAP. 51.--An ACT to authorize the county school board of Northampton county in behalf of the several school districts therein, to borrow money and to issue its refunding bonds therefor, for the purpose of paying a like amount of outstanding bonds of t...

1. Be it enacted by the general assembly of Virginia, That the county school board of Northampton county is hereby authorized and empowered to borrow money and issue bonds therefor, for the purpose of providing funds to redeem a like amount of the outstanding school bonds of such county -- or any of the school districts thereof, which are not yet due and which by their terms are redeemable in whole or in part at a date prior to the final maturity date therein specified, or which the holders thereof in any case may be willing to surrender before such final maturity.

Said bonds shall be denominated "refunding school bonds"; shall be signed by the chairman of the county school board, attested by the secretary thereof, and the coupons thereof may bear the facsimile signatures of such officers. They shall in every case, bear interest at a rate lower than that borne by the outstanding bonds which they are issued to redeem, and in no event in excess of five and three-fourths per centum per annum, and shall mature annually in installments beginning not later than three years after the date of their issuance, so that all of said bonds shall be paid at the final maturity date of the original bonds which they are issued to refund, or sooner at the option of the board. They shall be of such denomination, and the interest and principal thereof shall be made payable at such place or places within or without the State, and the bonds shall be in such form as the county school board may determine.

2. That such bonds shall be issued only after provision has been made by appropriate resolution of the county school board to call in and pay the bonds contemplated to be refunded, in strict compliance with the terms contained in such original bonds relating to the notice to be given to the holders thereof.

3. That where such refunding school bonds are issued as herein provided, they shall be deemed in every respect to stand in the place of the outstanding and redeemable bonds they are issued to refund, and to that end shall be an obligation of the school district, division or subdivision liable thereunder in the first instance; and such re-funding school bonds shall in every case contain a recital setting forth the specific statutory authority by virtue of which the original bonds were issued and the particular school district, division or subdivision liable for the payment of the principal and interest thereof.

4. That simultaneously with the issuance and delivery of said refunding school bonds, the original bonds in whose stead they are issued shall be destroyed by the president and secretary of the county school board of Northampton county, their action reported to the board, and a recital thereof spread upon its minutes.

5. That said refunding school bonds shall be sold by the county school board in such manner as it shall deem best, but not for less than the par value thereof, including interest from their respective dates to the date of delivery to the purchaser.

6. That the board of supervisors of Northampton county shall provide for the annual levy and collection of a tax upon all the taxable property within the school district or other division of such county originally liable in the premises and subject to taxation for such purpose, and at such rate as will be sufficient to provide for the payment of the interest and to provide a sinking fund for the payment of principal of such refunding bonds at maturity.

7. An emergency existing, this act shall be in force from its passage.