                                 CODE OF VIRGINIA

BONDS FOR SPECIAL PURPOSE; NO ELECTION REQUIRED (§ 21-122.1)

The governing body of any county in which a sanitary district has been or may be
created by general or special law shall have the power to issue bonds to satisfy
improvements to water or sewerage systems mandated by the State Water Control
Board, pursuant to the Federal Water Pollution Control Act, as amended (P.L.
92-500).

The principal and interest on bonds issued under this section shall be paid by
the governing body exclusively from revenues and receipts from the water or
sewerage system which is to be improved.

For the purposes of this section, the term &#8220;mandated&#8221; shall also
mean any agreement between a governing body and the State Water Control Board to
come into compliance with the requirements of the State Water Control Law.

Issuance of such bonds shall be subject to the conditions or limitations of this
article; however, no bond referendum shall be required for bonds to be issued
pursuant to this section. The sections of this article pertaining to election
requirements and procedures shall not be applicable where bonds are to be issued
for the purposes set forth herein. In addition, the provisions of §§ 21-137.2
and 21-138, authorizing an annual tax to be levied upon all the property in the
district in order to pay the principal and interest due on the bonds, shall not
be applicable to bonds issued under this section.

All bonds issued under the provisions of this section shall contain a statement
on their face substantially to the effect that neither the faith and credit of
the Commonwealth nor the faith and credit of any county, city, town or other
subdivision of the Commonwealth are pledged to the payment of the principal of
or the interest on such bonds. The issuance of revenue bonds under the
provisions of this section shall not directly or indirectly or contingently
obligate the Commonwealth or any county, city, town or other subdivision of the
Commonwealth to levy any taxes whatever therefor or to make any appropriation
for their payment except from the funds pledged under the provisions of this
section.

HISTORY: 1986, c. 340.