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U.S. Code as of:
01/19/04
Section 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
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 of this title.
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