
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 48USC1403]

 
              TITLE 48--TERRITORIES AND INSULAR POSSESSIONS
 
                        CHAPTER 7--VIRGIN ISLANDS
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 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.

(Oct. 27, 1949, ch. 769, Sec. 1, 63 Stat. 940.)

                  Section Referred to in Other Sections

    This section is referred to in sections 1403a, 1403b, 1408a of this 
title.
