University of Virginia Library

—II.—

And whereas the said General Assembly of Virginia at
its regular session of 1906 passed an act entitled "An Act
to authorize the Rector and Visitors of the University of
Virginia to issue new bonds, secured by deed of trust, for
the purpose of retiring certain bonds now outstanding and
secured in like manner," which was approved March 10, 1906,
and is in words and figures as follows, to-wit:

"Whereas under and by virtue of an act of the General
Assembly of Virginia, entitled, "an act to enable the Rector
and Visitors of the University of Virginia to repair the
loss sustained by that institution by the fire of October
twenty-seventh, eighteen hundred and ninety-five," approved
January (23rd), twenty-third, eighteen hundred and ninety-six,
and said-Rector and Visitors issued bonds for the purposes
named in said act to the amount of two hundred thousand
dollars, which matured in forty years, and were nontaxable
and bore interest at the rate of five per centum per
annum, and were secured by a deed of trust upon the property,
real and personal, of said University, executed to the Virginia
Trust Company as trustee, and bearing date on the first
of May, eighteen hundred and ninety six, which deed of trust

was duly recorded in the Clerk's office of the County court
of Albemarle County, and

"Whereas by the terms of said act, the sum of ten thousand
dollars per annum was appropriated to meet the interest
upon said bonds and provide a sinking fund for the payment of
the principal thereof, which said sum is inadequate for both
of these purposes, but would be sufficient if said bonds carried
a lower rate of interest; and

"Whereas according to the terms of the said bonds and
deed of trust, the said Rector and Visitors have a right to
call in and pay off the same after ten years from the date
thereof, and it is deemed advisable to give to the said Rector
and Visitors authority to negotiate a new loan in place
thereof, bearing a lower rate of interest and secured by a
new deed of trust, but without interfering with the purpose
of the General Assembly as declared in said act of appropriating
the annual amount as aforesaid on account of the interest
and sinking fund; therefore,

"1. Be it enacted by the General Assembly of Virginia,
That the Rector and Visitors of the University of Virginia
be, and they are hereby, authorized, at any meeting at which
a majority of said Visitors shall be present, to issue and
authorize the issue of bonds to an amount not exceeding two
hundred thousand dollars, either registered or with coupons
for interest, or in part of one class and in part of the
other, and convertible from one class into the other at the
pleasure of the holder in sums of one hundred dollars each,

or any multiple thereof, and bearing interest at the rate of
four per centum per annum, which said bonds or their proceeds,
shall be used to retire the bonds of the University now outstanding
under the act aforesaid, and may be exchanged, dollar
for dollar, for the bonds now outstanding, or, may be sold at
not less than par value, and the proceeds used in paying off
said bonds now outstanding.

"2. For the purpose of securing payment of the said
bonds, the said Rector and Visitors are hereby authorized to
convey, by deed of trust, any or all the property belonging
to, or held by the said University; and the said bonds shall
be payable, as payable, as specified in the said act of January
twenty-third, eighteen hundred and ninety-six, and shall
be subject to all the immunities and exemptions specified in
said act with respect to the bonds issued thereunder.

"3. In case, however, the holders of the said bonds now
outstanding are willing to accept interest at the rate of four
per centum per annum thereon, the said Rector and Visitors may
in their discretion, cause such bonds, with the coupons annexed,
to be so stamped or marked as to show that they bear
interest at the rate of four instead of five per centum per
annum, in which case no new bonds will be issued."