48 U.S.C. § 1403 — Issuance of bonds or other obligations by government or municipalities; use of proceeds; limit on public indebtedness; terms, execution, interest rate, and sale price; taxes
submitted 77 years ago by ch. 769 to r/title-48-TERRITORIES-AND-INSULAR-POSSESSIONS · 506 words · no verdicts yet
The Virgin Islands government and its municipalities may issue bonds and other obligations for listed public works, slum clearance, redevelopment, and low-rent housing. The section limits debt, sets bond terms and interest, exempts the bonds from taxation, and requires enough taxes to pay outstanding bonds.
The Government of the Virgin Islands or any of its municipalities may issue negotiable general-obligation bonds and other obligations to build, improve, extend, repair, reconstruct, acquire, or operate public works. These include streets, bridges, wharves, harbors, sewers and sewage plants, public buildings, schools, libraries, gymnasiums and athletic fields, firehouses, electric systems, and other public utilities, including utilities owned or operated by the Saint Thomas Power Authority. The bonds or obligations may also be used to clear slums, carry out urban redevelopment, or provide low-rent housing. A municipality may not incur public debt greater than 10 percent of the assessed value of its taxable real property. The Virgin Islands government may not incur public debt greater than 10 percent of the assessed value of taxable real property in the islands. Bonds issued under sections 1403 through 1403b may have dates, denominations, maturity amounts and dates, payment places, public or private sale, redemption terms, registration privileges, and execution methods set by the issuing government. They may mature no later than 30 years after their date. A signature on a bond or coupon remains valid even if the signing officer leaves office before delivery. The bonds may bear interest of no more than 4 percent per year, paid twice a year. They must be sold for at least their principal amount plus accrued interest. The bonds, including their interest, are exempt from taxation by the United States, the Virgin Islands, its political subdivisions, any State, Territory, possession, or political subdivision of one of those governments, and the District of Columbia. The Virgin Islands government and each municipality must levy and collect enough taxes to pay the outstanding bonds, even if doing so requires a tax rate above or in addition to the 1.25 percent of assessed value provided in section 1401b(1).
To construct, improve, extend, better, repair, reconstruct, acquire, and operate any and all types of public works which shall include, but not be limited to, streets, bridges, wharves, and harbor facilities, sewers and sewage-disposal plants, municipal buildings, schools, libraries, gymnasia and athletic fields, fire houses, electric distribution systems or other work pertaining to electric systems, and other public utilities, including those owned or operated by the Saint Thomas Power Authority, or to clear slums, accomplish urban redevelopment or provide low-rent housing, negotiable general obligation bonds and other obligations may be issued by the government of the Virgin Islands or any municipality thereof: Provided, That no public indebtedness of any municipality thereof shall be incurred in excess of 10 per centum of the aggregate assessed valuation of the taxable real property in such municipality and that no public indebtedness of the government of the Virgin Islands shall be incurred in excess of 10 per centum of the aggregate assessed valuation of the taxable real property in the islands. Bonds issued pursuant to sections 1403 to 1403b of this title shall bear such date or dates, may be in such denominations, may mature in such amounts and at such time or times, not exceeding thirty years from the date thereof, may be payable at such place or places, may be sold at either public or private sale, may be redeemable (either with or without premium) or nonredeemable, may carry such registration privileges as to either principal and interest, or principal only, and may be executed by such officers and in such manner, as shall be prescribed by the government of the Virgin Islands or of the municipality issuing the bonds. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature, whether manual or facsimile, shall, nevertheless, be valid and sufficient for all purposes, the same as if such officers had remained in office until such delivery. The bonds so issued shall bear interest at a rate not to exceed 4 per centum per annum, payable semiannually. All such bonds shall be sold for not less than the principal amount thereof plus accrued interest. All bonds issued by the government of the Virgin Islands or any municipality thereof, including specifically interest thereon, shall be exempt from taxation by the Government of the United States, or by the government of the Virgin Islands or any political subdivision thereof, or by any State, Territory, or possession or by any political subdivision of any State, Territory, or possession, or by the District of Columbia: Provided further, That the government of the Virgin Islands and any municipality thereof shall be obliged to levy and collect sufficient taxes for servicing any of the outstanding bonds, even if such taxation is required at a rate in excess of or in addition to the tax or tax rate of 1.25 per centum of the assessed value which is provided for in section 1401b 1 of this title.
Source credit: (Oct. 27, 1949, ch. 769, § 1, 63 Stat. 940.)
- 1949Enacted · Act of Oct. 27, 1949, ch. 769 · 63 Stat. 940
A history note hasn’t been published yet. The record shows enactment by ch. 769 on 1949-10-27.
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