CODE OF VIRGINIA

PAYMENT OF INTEREST ON SERIAL BONDS; NO SINKING FUND REQUIRED; TAX LEVY; USE OF
EXCESS REVENUES (§ 21-137.2)

When serial bonds have been issued, the net revenue derived from the operation
of such systems shall be applied to pay the interest on and the principal of
such serial bonds as the same become due, but no sinking fund shall be required
in respect of serial bonds.The board shall, if necessary, levy an annual tax
upon all property in such sanitary district, subject to local taxation, to pay
such principal and interest as shall annually become due for payment. In the
event net revenue exceeds the annual principal and interest due thereon, the
board may use such net revenue for extensions and additions to the system,
purchase and retirement of outstanding bonds of the district, or for any other
lawful purpose consistent therewith.

HISTORY: 1972, c. 236.