Chapter 13. PUBLIC BONDED INDEBTEDNESS.

§1. Political Divisions Authorized to Issue and Sell Bonds.—Any county, by and through its county court, either for and on behalf of the county or for and on behalf of any magisterial district, or group of magisterial districts therein; any municipal corporation, by and through its council or other governing body in lieu thereof; or any school district, or any in dependent school district, by and through its board of education or other fiscal body in lieu thereof, may issue and sell its bonds, in the manner and subject to the limitations and conditions hereinafter contained in this article.(1923, c. 14, §1.)

§2. Purpose for Which Bonds May be Issued.—Debt may be incurred and bonds issued under this article for the purpose of acquiring, constructing and erecting, enlarging, extending, reconstructing or improving any building, work, utility or undertaking, or for furnishing, equipping and acquiring or procuring the necessary apparatus for any building, work, improvement or department, or for other similar corporate purpose, for which the political division is authorized to levy taxes or expend public money. But no bonds shall be issued for the purpose of providing funds for the current expenses of any body or political division. Interest accruing during the construction period, that is to say, the time when an improvement is under construction and six months thereafter, shall be deemed a part of the cost of the improvement, and shall not be deemed current expenses. All engineering and inspection costs, including a proper proportion of the compensation, salaries and expenses of the engineering staff of the political division properly chargeable to any work of improvement, as determined by the governing body, or the estimated amount of such costs, shall be deemed part of the cost of an improvement. All costs and estimated costs of the issuance of bonds shall be deemed a part of the cost of the work or improvement, or of the property, or of the carrying out of the purposes for which such bonds are to be issued. The power to acquire or construct any building, work or improvement shall be deemed to include the power to acquire the necessary lands, sites and rights of way therefor.(1923, c. 14, §2.)

§3. Amount of Indebtedness for Which Bonds May be Issued.—No political division authorized by this article to issue bonds shall by any bond issue become indebted to an amount, including all other indebtedness, exceeding two and one-half percent of the value of the taxable property therein, as shown by the last as sessment thereof for state and county purposes next prior to the issuing of such bonds: Provided, however, That any county, magisterial district or any group of magisterial districts, for the construction, reconstruction, locating, relocating, draining or grading of any county district road, or bridges thereon, and any municipal corporation, of three thousand in habitants or more, for the purpose of grading, paving, sewering, and otherwise improving or reimproving its streets and alleys, and for municipally owned water and light plants and other municipally owned utilities, may become indebted and issue bonds in an additional sum not exceeding two and one-half percent of the value of the taxable property therein, ascertained as aforesaid.

The term “sewering” as used herein shall be treated in a comprehensive sense, so as to include all mains, laterals, connections, traps, incinerating and disposal plants, and other necessary and convenient accessories to a modern, sanitary and efficient sewerage system, and shall include storm sewers.

The term “municipally owned water plants” as used herein shall also be treated in a comprehensive sense, so as to include all reservoirs, mains, laterals, connections and other necessary and convenient accessories to a modern and efficient municipal water system.(1923, c. 14, §3; 1925, c. 42; 1927, c. 58.)

§4. Bond Issue Proposal to be Submitted to Voters; Election Order.—No debt shall be contracted or bonds issued under this article until all questions connected with the same shall have been first submitted to a vote of the qualified electors of the political division for which the bonds are to be issued, and shall have received three-fifths of all the votes cast for and against the same. The governing body of any political division referred to in this article may, and when requested so to do by a petition in writing, praying that bonds be issued and stating the purpose and amount thereof, signed by legal voters of the political division equal to twenty percent of the votes cast in a county or magisterial district for governor, or in a municipal corporation or school district for mayor or member of the board of education, as the case may be, shall, by order entered of record, direct that an election be held for the purpose of submitting to the voters of the political division all questions connected with the contracting of debt and the issuing of bonds. Such order shall state:

(a) The necessity for issuing the bonds, or, if a petition has been filed as provided herein, that such petition has been filed;

(b) If for the construction of a county-district road or bridge thereon, a summary of the engineer’s report provided for in the following section setting forth the approximate extent and the estimated cost of the proposed improvement, and the kind or class of work to be done thereon;

(c) Purpose or purposes for which the proceeds of bonds are to be expended;

(d) Valuation of the taxable property as shown by the last assessment thereof for state and county purposes;

(e) Indebtedness, bonded or otherwise;

(f) Amount of the proposed bond issue;

(g) Maximum term of bonds and series;

(h) Maximum rate of interest;

(i) Date of election;

(j) If a special election, names of commissioners for holding same;

(k) If registration of voters is necessary, notice of the time, place and manner of making same;

(1) That the levying body is authorized to lay a sufficient levy annually to provide funds for the payment of the interest upon the bonds and the principal at maturity, and the approximate rate of levy necessary for this purpose.

Any other provision which does not violate any provision of law, or transgress any principle of public policy, may be incorporated in the order.(1923, c. 14, §4.)

§5. Engineer’s Estimate.—Before ordering an election on the question of issuing bonds to construct a county-district road or bridge, whether acting on its own motion or on petition, the county court shall instruct the county road engineer, or some other engineer designated by it for the purpose, to make an investigation and furnish to the court an estimate of the probable cost of the proposed improvement.(1923, c. 14, §5.)

§6. Bonds May Be for More Than One Purpose.—The order or ordinance submitting the proposition of issuing bonds to a vote may specify more than one purpose for which bonds are to be issued: Provided, That the amount of the proceeds of the issue to be used for each purpose shall also be specified therein.(1923, c. 14, §6.)

§7. When Election to be Held.—Elections for the purpose of voting upon questions of issuing bonds may be held at any general, primary, or special election which the fiscal body in its order submitting the same to a vote may designate, except that, when a petition is filed asking that bonds be issued, the fiscal body with which the same is filed, if it be not designated in the petition that the election shall be held at a general or primary election, shall order a special election to be held within sixty days from the date of the filing of such petition; or, if it be a petition for bonds for the construction of county-district roads or bridges thereon, the election shall be held within sixty days from the filing of the engineer’s report as provided for in section five of this article.(1923 c. 14, §7.)

§8. Publication of Notice of Election.—Notice of all bond elections shall be given by the publication of the order provided for in section four of this article at least once each week for four successive weeks prior to the date of the election in two newspapers, of different politics, if there be such, published in the political division in which the election is to be held. If only one newspaper be published in such political division, the notice shall be published as aforesaid therein. If no newspaper be published in the political division, the notice shall be published as aforesaid in two newspapers of different politics, if there be such, published in the county within which such political division is embraced. If only one newspaper be published in the county, the notice shall be published as aforesaid therein. Notice shall also be given by posting printed copies of such order at the front door of the meeting place of the body calling the election and at each voting precinct at which the election is to be held a least ten days before the election.(1923, c 14, §8.)

§9. Registration of Voters.—The registration of voters and the use of registration book prescribed by general law shall be applicable to any election under this chapter.(1923, c. 14, §9.)

§10. Election Precincts.—Elections for bond issues for counties, districts and school districts shall be held at the voting precincts established for holding general elections; for municipalities, at the precincts established for the election of municipal officers; and for independent school districts, at the precincts used for voting for boards of education.(1923, c. 14, §10.)

§11. General Election Laws to Apply; Recorders and Secretaries to Act in Lieu of Circuit Clerks.—All the provisions of the general election laws of this State concerning general, primary or special elections, when not in conflict with the provisions of this article, shall apply to bond elections hereunder, in so far as practicable: Provided, That in bond elections for municipalities, school or independent school districts, the recorders and secretaries, respectively, shall procure and furnish to the election commissioners at each voting precinct the ballots, poll books, tally sheets and other things necessary for conducting the election, and perform all duties imposed by law upon clerks of the circuit courts in relation to general elections.(1923, c. 14, §11.)

§12. Form of Ballot.—The ballots to be used at elections under this article shall be in substantially the following form:

(1923, c. 14, §12.)

§13. Time and Manner of Canvassing Returns.—The authorities calling bond elections shall canvass the returns at the same time with reference to the election and in the same manner as is required of county courts for general elections.(1923, c. 14, §13.)

§14. Resolution Authorizing Issuance and Fixing Terms of Bonds.—If three-fifths of all the votes cast for and against the proposition to incur debt and issue negotiable bonds shall be in favor of the same, the governing body of the political division shall, by resolution, authorize the issuance of such bonds in an amount not exceeding the amount stated in the proposition; fix the date thereof; set forth the denominations in which they shall be issued, which denominations shall be one hundred dollars or multiples thereof; determine the rate of interest which the bonds shall bear, which rate of interest shall be within the maximum rate stated in the proposition submitted to vote and payable semiannually, and shall in no case exceed six per cent per annum; prescribe the medium with which the bonds shall be payable; require that the bonds shall be made payable at the office of the state treasurer and at such other place or places as the body issuing the same may designate; provide for a sufficient levy to pay the annual interest on the bonds and the principal at maturity; fix the times within the maximum period, as contained in the proposition submitted to vote, when the bonds shall become payable, which shall not exceed thirty-four years from the date thereof; and prescribe a form for executing the bonds authorized.(1923, c. 14, §14.)

§15. Bonds to be Payable in Annual Installments.—Such bonds shall be made payable in annual installments beginning not more than two years after the date thereof, and the amount payable in each year may be so fixed that, when the annual interest is added to the principal amount to be paid, the total amount payable in each year in which part of the principal is payable shall be as nearly equal as practicable. It shall be an immaterial variance if the difference between the largest and smallest amounts of principal and interest payable annually during the term of the bonds shall not exceed three per cent of the total authorized issue. Or, such bonds may be payable in annual installments beginning not more than two years after the date thereof, each installment being as nearly equal in principal amount as may be practicable.(1923, c. 14, §14.)

§16. Recital of Certification That Bonds Are Issued in Conformity With Constitution and Statutes; Effect Thereof With Attorney General’s Indorsement.—The resolution authorizing the bonds provided for in section fourteen of this article may direct that they shall contain the following recital:

“It is certified that this bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of West Virginia.”

Such recital, when such bonds shall have been indorsed by the attorney general as provided in section twenty-eight of this article; shall be deemed an authorized declaration by the governing body of the political division and to import that there is constitutional and statutory authority for incurring the debts and issuing the bonds; that all the proceedings therefor are regular; that all the acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds, have existed, happened and been performed in due time, form and manner as required by law; that the amount of the bond and the issue of which it forms a part, together with all other indebtedness, does not exceed any limit or limits prescribed by the Constitution or statutes of this State; and that all questions connected with incurring the debt and issuing the bonds have been first submitted to a vote of the people and have received three-fifths of all the votes cast for and against the same at an election regularly called and held for the purpose after notice published and posted in the manner required by law. If any bond be issued containing the said recital, and also containing the indorsement of the attorney general as aforesaid, it shall be conclusively presumed that said recital, construed according to the import hereby declared, is true, and neither the political division nor any taxpayer thereof shall be permitted to question the validity or regularity of the obligation in any court or in any action or proceeding.(1923, c. 14, §15.)

§17. Bonds May be Registered; Coupon Bonds May be Registered as to Principal.—The bonds issued hereunder may be registered or coupon bonds. Coupon bonds may be registered as to the principal in the owner’s name by the state treasurer on books which shall be kept at his office for the purpose and the registration shall also be noted on the bonds, after which no transfer shall be valid unless made by the state treasurer on the books of registration and similarly noted on the bonds. Bonds registered as to principal may be discharged from registration by being transferred to bearer, after which they shall be transferable by delivery; but may again, and from time to time, be registered as to the principal amount as before. The registration of coupon bonds as to the principal sum shall not affect the negotiability of the interest coupons, but title to the same shall pass by delivery.(1923, c. 14, §16.)

§18. Registration of Coupon Bonds as to Interest.—Coupon bonds may also be registered as to the interest by the holder surrendering the bonds with the unpaid coupons attached, which bonds and coupons shall be canceled by the state treasurer. New bonds of the same date and tenor and for the same amounts as the bonds surrendered, or, at the option of the holder, a single bond for the aggregate amount of the bonds surrendered, but without interest coupons attached, shall be issued in the place of the coupon bonds and registered in the manner required in the preceding section. A registered bond may at any time be surrendered and be exchanged by the holder for a coupon bond by the holder delivering the registered bond to the state treasurer who shall cancel the same and who shall cause a new bond of the same date and tenor and for the same amount to be issued, and with interest coupons for the interest thereafter to accrue thereon attached, and deliver the same to the holder of the surrendered bond. The governing body of the county, municipal corporation or school district which issued the original bond shall issue and execute the new bond required by this section and shall pass the resolutions and ordinances necessary to authorize the same. The expense of such registration shall in all cases be paid by the holder of the bonds.(1923, c. 14, §17.)

§19. Signing, Sealing and Delivery of Bonds and Coupons.—All bonds issued under this article by any county shall be signed by the president of the county court and countersigned by the clerk of such court; bonds issued by any municipality shall be signed by the mayor or other chief executive and countersigned by the clerk, recorder or secretary; bonds issued by a district or independent school district shall be signed by the president of the board of education and countersigned by the secretary thereof. The seal of the political division shall be affixed to such bonds. Interest coupons shall be signed by the facsimile signatures of such officers. The delivery of any bonds or coupons so executed at any time thereafter shall be valid, although before the date of delivery the person signing such bonds or coupons shall have ceased to hold office.(1923, c. 14, §18.)

§20. Imposition and Collection of Tax to Pay Bonds and Interest.—It shall be the duty of the governing body of any political division, at or before the time of issuing bonds under this article, to provide for the imposition and collection annually of a tax, in excess of all to other taxes, on all property subject to taxation by the political division under the Constitution and laws of this State, sufficient in amount to pay annually the interest on such debt and the principal thereof falling due in each year, such tax to be levied and collected by the same officers, at the same time and in the same manner as the general taxes of the political division. Should any political division neglect or fail for any reason to impose or collect such tax for the payment of the principal or interest of any bonded indebtedness incurred under this article, any person in interest or the state tax commissioner may enforce the imposition and collection thereof in any court having jurisdiction of the subject matter, and any suit, action or proceeding brought for such purpose shall be heard and disposed of with reasonable dispatch.(1923, c. 14, §19.)

§21. Advertisement and Sale of Bonds; Purchase by State Governmental Agency.—The governing body of the political division issuing such bonds shall sell the same and collect the proceeds, which proceeds shall be deposited with its treasurer. Whenever any bonds are to be or sold, the body authorized to sell the same shall, before offering them to the public, offer them in writing to the secretary of state for purchase by any of the governmental agencies of the State authorized by law to purchase such bonds, which offer shall be held to be an offer to sell the bonds at their par value to the state sinking fund commission and to any other of the governmental agencies of the State authorized by law to purchase such bonds. If, after such offer is made, the governing body of the political division making the offer shall be notified in writing that none of such agencies of the State has elected to purchase such bonds, or after ten days have elapsed after such offer of sale has been made without an acceptance by any of such agencies of the State, then the governing body of the political division shall advertise such bonds for sale, on sealed bids, which advertisement shall be published at least once a week for three weeks, the first publication to be made at least twenty-one days preceding the date fixed for the reception of bids, in a newspaper published in the political division, or if there be none published therein, in a newspaper published in the county in which the political division is situated, and also posted in three public places in the political division at least twenty-one days before the date fixed for the reception of bids; and such advertisement shall also be published in a financial paper published either in the city of New York or the city of Chicago, or in a newspaper of general circulation published in a city of this State having a population of not less than twenty thousand inhabitants, according to the last federal census. The governing body may reject any and all bids. If the bonds be not sold pursuant to such advertisement, they may, within sixty days after the date advertised for the reception of bids, be sold by the governing body at private sale, but no private sale shall be made at a price less than the highest bid which shall have been received. If not sold, such bonds shall be readvertised in the manner herein provided. In no event shall bonds be sold for less than their par value.(1923, c. 14, §20.)

§22. Purposes for Which Proceeds to be Used; Purchaser Need Not See to Application Thereof.—The proceeds derived from the sale of any bonds shall be used only for the purpose or purposes for which the bonds were issued as set out in the order or ordinance submitting the question to vote, but the purchaser of the bonds shall not be obliged to see to the application thereof.(1923, c. 14, §21.)

§23. No Law, Order, Ordinance, Resolution, Proceeding or Publication Necessary Except as Prescribed by This Article.—This article shall, without reference to any other act of the legislature, be full authority for the issuance and sale of bonds in this article authorized. No order, ordinance, resolution or proceeding in respect to the issuance of any bond under this article shall be necessary, except such as are required by this article. No publication of any order, ordinance, resolution or proceeding relating to the issuance of such bonds shall be necessary except such as is required by this article. Any publication prescribed hereby may be made in any newspaper conforming to the terms of this article, without regard to designation thereof as the official journal of the political division.(1923, c. 14, §22.)

§24. Legal Status of Bonds.—Bonds issued under this article, except to the extent that their status shall be affected by registration made in pursuance of this article, shall have all the qualities of negotiable paper under the law merchant and shall not be invalid for any irregularity or defect in the proceedings for the issuance thereof, and shall be incontestable in the hands of bona fide purchasers or holders thereof for value.(1923, c. 14, §23.)

§25. Copy of Proceedings to be Transmitted to Attorney General for Approval or Disapproval; Publication of Approval or Disapproval.—The governing body of any political division issuing bonds under this article shall, as soon as practicable after the result of the election authorizing their issuance shall have been officially ascertained, transmit to the attorney general a duly certified copy of all the orders, ordinances, proclamations, notices, advertisements, affidavits, resolutions and records of all the proceedings connected with or pertaining to such bond issue, and any other matters relative thereto which the attorney general may require. The attorney general shall thereupon either approve or disapprove the validity of such bond issue, and shall immediately notify the governing body of the political division which authorized the issuance of the bonds of his action by mail, and as soon as practicable notify the people of such political division of his approval or disapproval of such bond issue, by causing notice thereof to be published once each week for two successive weeks in two newspapers, of opposite politics, if there be such, published therein; or if only one newspaper be published therein, then in such newspaper; or if no newspaper be published in such political division, then in some newspaper which is of general circulation therein.(1923, c. 14, §24.)

§26. Review in Supreme Court of Appeals of Action of Attorney General.—For a period of ten days from and after the date of the last publication of the notice of the attorney general of his action in approving or disapproving the validity of any bond issue as provided in the preceding section, any person in interest, or any taxpayer within the political division for which the bonds are authorized to be issued, may present his or its petition to the supreme court of appeals or to a judge thereof in vacation, praying that the action of the attorney general in approving or disapproving such bond issue, as aforesaid, be reversed or modified; and if the court, or such judge thereof in vacation, be of the opinion to hear and determine the matters in such petition set out, the case shall be proceeded with as in cases of original jurisdiction; but the petitioner shall file with the clerk of the court a bond, with security to be approved by him, and in such sum as the court or judge may fix, for the payment of such costs as may be awarded against him in said court. The clerk of the court shall forthwith notify the attorney general and the governing body of the political division which authorized the issuance of the bonds of the action taken by the court or judge in vacation upon such petition, and for the hearing thereof the attorney general shall file with the clerk of said court all papers, documents, evidence and records, or certified copies thereof, which were before him and on which he based his approval or disapproval ; and before the day fixed for final hearing, he shall file with the clerk of said court a written statement of his reasons for the approval or disapproval of the bond issue. Upon the submission of the case, the court shall decide the matters in controversy and enter such order thereon as to it may seem to be just.(1923, c. 14, §24.)

§27. Bond Issue and Tax to Pay Bonds to be Incontestable Upon Failure to File Petition for Review or Dismissal Thereof.—If no person in interest or taxpayer shall within ten days from and after the date of the last publication of the notice of the attorney general of his action in approving or disapproving the validity of any bond issue, as provided in this article, present his or its petition to the supreme court of appeals or to a judge thereof in vacation praying that the action of the attorney general be reversed or modified, as hereinbefore provided, or if such petition be filed and the court or judge be of the opinion not to hear and determine the matters in such petition set out, the action of the attorney general shall be final and no other appeal shall be allowed therefrom; and the bond issue approved by him shall become incontestable and shall be a valid and binding obligation upon the authority issuing the same and upon the taxable property within the political division which authorized the bond issue by the vote of the people therein; and no one shall thereafter have the right to contest in any court or in any action or proceeding the legality of any election held under this article, the bond issue provided for, or the tax required to pay the same, for any cause whatsoever.(1923, c. 14, §24.)

§28. Indorsement on Bonds by Attorney General.—After ten days shall have elapsed from and after the date of the last publication of the attorney general’s notice provided for in section twenty-five of this article, if no proceeding be pending to have his approval of the bond issue reversed or modified, the attorney general shall indorse upon each and every bond of the issue so approved by him his certificate to the effect that such bond has been approved by him by virtue of the authority vested in him by this article; that notice of his approval was published as required by section twenty-five of this article; that ten days have elapsed since the date of the last publication of such notice; that there has been no appeal from his decision to the supreme court of appeals; and that the bond has become incontestable and is a binding obligation upon the authority issuing the same and upon the taxable property within the political division, and that the validity of such bond shall not be contested thereafter in any court or in any action or proceeding for any cause whatsoever.(1923, c. 14, §24.)

§29. Costs of Proceedings and Expenses of Attorney General to be Paid Out of Proceeds of Bonds or General Fund.—The cost of publishing the notice to taxpayers as herein provided, and the costs of certifying and copying all records, papers and proceedings to be used by the attorney general in passing upon the validity of the bond issue, and all necessary expense incurred by the attorney general in connection with any bond issue, shall be paid by the authority issuing such bonds out of the proceeds arising from the sale thereof, if the same be finally approved, and if the bond issue be disapproved, such expense shall be paid out of the general fund of such authority.(1923, c. 14, §24.)

§30. Files and Records to be Kept by Attorney General.—The attorney general shall keep on file in his office the papers pertaining to any bond issue submitted to him, and shall record his findings of approval or disapproval in a well-bound book kept for that purpose in his office, which shall be open for inspection by anyone in interest during business hours.(1923, c. 14, §24.)

§31. Proceedings to Issue Bonds Under Authority of Prior Statutes; Debts Heretofore Incurred.—Nothing contained in this article shall affect in any way proceedings heretofore begun by the governing body of any political division to issue bonds under the authority of any statutes of this State heretofore in force. Such proceedings may be completed under the statute under which the same were begun and under the provisions of this article so far as the same can be made applicable thereto. Nor shall anything contained in this article invalidate any indebtedness heretofore incurred under a law then existing.(1923, c. 14, §25.)

§32. Amount of Indebtedness Authorized by Section Three May be Increased by Special Act as to Municipalities and Independent School Districts; Bonds for Assessments Against Abutting Property Excepted From This Article.—Notwithstanding the provisions of section three of this article, when by a special act of the legislature any municipality or independent school district is authorized to become indebted for any purpose or purposes in a greater amount than is fixed by said section three, bonds may be issued under this article by such municipality or independent school district in an amount not exceeding that fixed by such special act. This article shall not affect any general or special law providing for the issuing of bonds for any improvement to be paid for in whole or in part by assessment against abutting property.(1923, c. 14, §26.)

§33. Bonds Exempt From Taxation.—All bonds of the State of West Virginia or of any political subdivision thereof issued hereunder, or under the provisions of chapter eight of this Code, shall be exempt from all taxation by the State or by any political subdivision thereof.

§1. What Political Divisions May Issue Refunding Bonds; When May be Issued.—Any county, by and through its county court, either for and on behalf of the county or for and on behalf of any magisterial district or group of magisterial districts therein; any municipal corporation, by and through its council or other governing body in lieu thereof; or any school district, or any independent school district, by and through its board of education or other fiscal body in lieu thereof, may, in the manner and subject to the limitations and conditions contained in this article, issue and sell its bonds for the purpose of refunding the bonds of such political division which have become or are becoming due and payable and for the discharge of which there are or will be when the bonds mature no funds or insufficient funds available; or when, in the opinion of the governing body of the political division obligated to the payment of such bonds, the rate of levy necessary to provide funds for their discharge will impose excessive taxes upon the taxpayers of such political division; or for the purpose of refunding outstanding bonds not due when such outstanding bonds are to be presented for payment before maturity by the exercise of option provisions or by agreement with the holders thereof. Such refunding bonds may be issued bearing the same or a lesser rate of interest than the bonds to be refunded.(1925, c. 46, §1.)

§2. Terms of Refunding Bonds; Time, Place and Amount of Payments.—Upon determining to issue such refunding bonds, the governing body of such political division shall, by resolution, authorize the issuance of such bonds in an amount not exceeding the principal amount of the bonds to be refunded, fix the date thereof, the rate of interest which such bonds shall bear, payable semiannually, and require that the bonds be payable at the office of the state treasurer and at such other place or places as the body issuing the same may designate. Such resolution shall also provide that such bonds shall mature serially in annual installments beginning not more than three years after the date thereof, and that the last of such annual installments shall mature in not exceeding thirty-four years from the date of such bonds. The amount payable in each year may be so fixed that, when the amount of interest is added to the principal amount to be paid during the respective years, the total amount payable in each year shall be as nearly equal as practicable; or such bonds may be made payable in annual installments as nearly equal in principal amount as may be practicable.(1925, c. 46, §2.)

§3. Provisions of Sections Seventeen Eighteen, Nineteen and Twenty of Article One to Apply to Refunding Bonds.—All the provisions of sections seventeen, eighteen, nineteen and twenty of article one of this chapter, relating to bonds issued for original indebtedness, shall apply to the same extent and with equal force and effect to refunding bonds issued under the provisions of this article.

§4. Disposition of Bonds ; Delivery of Refunding Bonds Conditional Upon Cancellation of Original Bonds.—The governing body of the political division issuing bonds under this article may sell the same or any part thereof and collect the proceeds, or such bonds may be delivered to the holder or holders of the bonds to be refunded in exchange therefor. It is the intention of this article to authorize political divisions to issue bonds for the purpose of refunding outstanding bonds without thereby contracting any indebtedness, and it shall be conditional upon the delivery of any refunding bonds that a like principal amount of the bonds to be refunded be canceled and paid simultaneously with the issuance and delivery of such refunding bonds.(1925, c. 46, §7.)

§5. Provisions of This Article Sufficient Authority for Issuing Refunding Bonds.—This article shall, without reference to any other act of the legislature, be full authority for the issuance, sale and exchange of bonds in this article authorized. No order, ordinance, resolution or proceeding in respect to the issuance of any bonds hereunder shall be necessary except such as are required by this article. No publication of any notice, order, ordinance or proceeding relating to the issuance of such bonds shall be necessary.(1925, c. 46, §8.)

§6. No Election or Publication Necessary; No Priority in State Agencies as to Right of Purchase.—The issuance and sale or exchange of bonds in this article authorized may be had without an election or publication of any notice. The prior right of the State and its several departments, boards and commissions to the purchase of bonds shall not be construed as applicable to the bonds in this article authorized.(1925, c. 46, §9.)

§7. Adjudication of Part of Article to be Unconstitutional Not to Affect Other Parts.—If any clause, sentence, paragraph or part of this article shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of the article, but shall be confined in its application to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment has been rendered.(1925, c. 46, §10.)

§8. Bonds Exempt From Taxation.—All bonds of the State of West Virginia or of any political subdivision thereof issued hereunder shall be exempt from all taxation by the State or by any political subdivision thereof.

§1. Sinking Fund Commission; Members; Officers; Records.—The commission known as the “State Sinking Fund Commission” is hereby continued as heretofore by law created. The state tax commissioner, the secretary of state, the state auditor and the state treasurer shall be ex officio members of and constitute said commission. The state tax commissioner shall be chairman and the secretary of state secretary of said commission. A minute record shall be kept by said commission, in which shall be entered a record of all of its proceedings.(1921, c. 157, §1; Code 1923, c. 47A, §20.)

§2. Employees and Expenses of Commission.—The commission is hereby authorized to employ an assistant secretary and such other employees as may be necessary to carry out the purposes of this article, who shall hold their positions at the pleasure of the commission. All expenses incurred by the commission in the administration of the provisions of this article, including traveling expenses, when absent from the capital and engaged in the business of the commission, shall be paid as other claims against the State out of any appropriations made by the legislature for such purpose.(1921, c. 157, §2; Code 1923, c. 47A, §21.)

§3. Duty of Commission to Administer Interest and Sinking Funds.—It shall be the duty of the state sinking fund commission to administer all interest and sinking funds required for the bond issues of the several counties, districts, school districts, independent school districts and municipalities of the State.(1921, c. 157, §3; Code 1923, c. 47A, §22.)

§4. Investment of Sinking Funds.—It shall be the duty of said commission to keep all sinking funds, under its control, invested. The sinking fund of each political division shall be first invested in the political division’s own bonds, if the same are available for purchase. If no such bonds can be purchased for investment or retirement, then it shall be the duty of the commission to invest the sinking funds in bonds issued by other political divisions of the State. But any bonds so purchased shall be bonds which mature before the bonds mature for which the sinking fund was created. Before any bond shall be purchased by the commission, either for investment or retirement (unless the same be purchased at maturity according to the condition of the bond), the purchase must be authorized by a recorded vote of the commission showing the approval of three-fourths of all the members. No bond shall be purchased at a greater rate than par and accrued interest. The interest fund shall be used for the purpose of paying the interest on the outstanding bonds as the same falls due.(1921, c. 157, §4; Code 1923, c. 47A, §23.)

§5. Accounts of Bond Issues; Disposition of Canceled Bonds; Custody of Purchased Bonds.—Separate accounts shall be kept for each bond issue of each political division of the State, showing in detail all receipts and disbursements. Every six months, the commission shall render to each political division of the State having outstanding bonds a statement showing the condition of its interest and sinking funds, and showing all receipts and disbursements of the preceding six months. At the same time, the commission shall surrender to the political division the coupons and bonds which have been paid and canceled. All bonds purchased by the commission as an investment for the funds shall remain in the custody of the state treasurer until the same are sold or mature and are canceled.(1921, c. 157, §5; Code 1923, c. 47A, §24.)

§6. Statement by Commission to Political Division for Levy Purposes; Report by Officers of Political Division to Commission.—The commission shall, annually, at least thirty days before the time for making up the estimate for levy purposes, render to each political division having outstanding bonds, a statement showing the levy required to pay the interest on and create a sinking fund for the retirement of the division’s outstanding bonds.

The officers of each political division having outstanding bonds or issuing bonds shall make reports relating thereto to the state sinking fund commission in the manner and form prescribed by the chief inspector and supervisor of public offices.(1921, c. 157, §6; Code 1923, c. 47A, §25.)

§7. Where and How Bonds and Interest Payable.—The place or places of payment of all bonds and interest coupons, hereafter issued, shall be as provided in articles one and two of this chapter and out of the funds specified in the following section of this article.(1921, c. 157, §7; Code 1923, c. 47A, §26.)

§8. Collection, Deposit and Account of Sinking Funds.—All interest and sinking funds on hand July first of each year and belonging to the counties, districts, school districts, independent school districts or municipalities of the State, shall be, by the treasurer or collector thereof, not later than the following December, forwarded to the state sinking fund commission, to be deposited in the state treasury to the credit of the State.

Whenever the amount deposited to the credit of the State for any political division is not sufficient to meet the interest falling due, it shall be the duty of the treasurer or collector of such political division, upon being notified of the fact by the state sinking fund commission, to remit a sufficient amount of interest and sinking funds that may be in his hands to meet the interest then due.

Any taxes to provide a sinking fund or for the payment of interest on bonds issued by any political division of the State, which shall be collected by any state officer, shall be paid to the treasurer of the political division for which they are collected at the same time that other taxes collected by such officer for such division are paid to the treasurer thereof; and the treasurer of the political division shall thereupon promptly forward the same to the state sinking fund commission, to be deposited in the state treasury to the credit of the State.

The state auditor and the state treasurer shall carry an account to be known as the state interest and sinking fund. All of such deposits shall be carried as a part of said fund.(1921, c. 157, §8; Code 1923, c. 47A, §27.)

§9. Prior Right of Commission to Purchase Bonds of Political Divisions.—It shall be the duty of every county, district, school district, independent school district or municipality issuing bonds, except refunding bonds issued under the provisions of article two of this chapter, to offer the same in writing to the state sinking fund commission, prior to advertising the same for sale, and the state sinking fund commission shall, within ten days after receiving such offer, accept the same and purchase such bonds or any portion of same at par and accrued interest or reject such offer: Provided, however, That nothing in this article shall prohibit the state board of public works from purchasing bonds as an investment of the workmen’s compensation fund as provided by the workmen’s compensation act. The offer to and the acceptance by the state sinking fund commission shall be subject to the right of the board of public works to first purchase.(1921, c. 157, §9; Code 1923, c. 47A, §28.)

§10. Resale of Bonds Purchased by the Commission.—Any bonds purchased by the commission in pursuance of the provisions of the preceding sections of this article may be resold by the commission when, in its opinion, it is necessary or desirable for the successful operation of the commission. Before any such sale shall be made, however, the sale shall be authorized by a recorded vote of the commission, showing the approval of three-fourths of all the members, and no bond shall be sold for an amount less than the amount paid for it, plus accrued interest. The proceeds of such sale shall be credited to the proper fund out of which the bonds were purchased: Provided, That the profit accruing upon any bonds offered to the secretary of state under the provisions of article one of this chapter, and purchased by the state sinking fund commission and sold by said commission at a premium, shall be credited to the sinking fund of the political division issuing the bonds for the payment of said bonds and any interest thereon.

§11. Application of Sinking Fund Law to Existing Bonds.—This article shall not apply to any bond issue in this State heretofore made, wherein the ordinance or order of the taxing body issuing the same contains a provision, conditioned by the bond, for a special administration of the interest and sinking funds, which would be inconsistent with the provisions of this article.(1921, c. 157, §10; Code 1923, c. 47A, §29.)

§12. Investment by Commission of General Treasury Funds.—Upon the application of the governor, the state sinking fund commission, at its discretion, may make temporary investment of any funds in the state treasury in the bonds or treasury certificates of the government of the United States or bonds of this State, or bonds of any county, district, school district, independent school district or municipality of the State. Bonds so purchased shall be and remain in the custody of the state treasurer. The earnings from investments so made shall be credited to the permanent investment fund, which is hereby created, and shall be carried on the books of the state sinking fund commission. Said permanent investment fund shall be invested in the treasury certificates or the bonds mentioned in this section and the earnings from same shall be credited, as earned, to the general school fund.(1925, c. 10, §1.)

§13. Resale of Bonds to Other Funds.—The commission shall, when requested by the governor, sell such treasury certificates or bonds, held as temporary investment for state funds, to some other fund under its control, or sell the same to the workmen’s compensation fund: Provided, That under this section no bond may be purchased for more than par or sold for less than par, unless the bond so sold was purchased for less than par, in which case the bond cannot be sold for less than the purchase price.(1925, c. 10, §2.)