CHAPTER 17. ROADS AND HIGHWAYS.
WVC 17 - 26 -
ARTICLE 26. STATE ROAD BONDS.
WVC 17 - 26 - 1
For purposes of this article:
(a) "Commissioner" means the West Virginia commissioner of
highways continued pursuant to section one, article two-a of this
(b) "Amendment" means the amendment to the constitution of
this state entitled "Safe Roads Amendment of 1996" as approved by
referendum in the month of November, one thousand nine hundred
(c) "State road bond" means any bond or bonds issued by the
state pursuant to section two of this article;
(d) "Division" means the West Virginia division of highways
established under section one, article two-a, of this chapter, or
any successor to all or any substantial part of its powers and
(e) "Secretary" means the secretary of the West Virginia
department of transportation.
WVC 17 - 26 - 2
§17-26-2. State road general obligation bonds; amount; when may
Bonds of the state of West Virginia, under authority of the
"Safe Roads Amendment of 1996" of the par value not to exceed in
the aggregate five hundred fifty million dollars, are hereby
authorized to be issued and sold for matching available federal
funds for highway construction and for general highway construction
or improvements in each of the fifty-five counties in this state,
as provided for by the constitution and the provisions of this
article. During the fiscal year ending the thirtieth day of June,
one thousand nine hundred ninety-eight, the amount of one hundred
ten million dollars in bonds may be sold. That same amount is
authorized to be sold in each of the next four following fiscal
years: Provided, That any amount not sold in a fiscal year may be
carried forward and sold in the next fiscal year.
These bonds may be issued by the governor upon resolution
passed by the Legislature authorizing the same. The bonds shall
bear the date and mature at the time, bear interest at the rate, be
in amounts, be in denominations, be in the registered form, carry
registration privileges, be due and payable at the time and place
and in amounts, and subject to terms of redemption as the
resolution may allow.
Both the principal and interest of the bonds shall be payable
in the lawful money of the United States of America and the bonds
and the interest thereon shall be exempt from taxation by the stateof West Virginia, or by any county, district or municipality
thereof, which fact shall appear on the face of the bonds as part
of the contract with the holder of the bond.
The bonds shall be executed on behalf of the state of West
Virginia, by the manual or facsimile signature of the state
treasurer, under the great seal of the state or a facsimile of the
great seal, and countersigned by the manual or facsimile signature
of the auditor of the state.
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§17-26-3. Creation of debt service fund; disbursements to pay debt service on state road general obligation bonds.
There is hereby created a special account in the state
treasury, which shall be designated and known as the "Safe Road
Bond Debt Service Fund", into which shall be deposited any and all
amounts appropriated by the Legislature from the state road fund or
funds from any source whatsoever which is made liable by law for
the purpose of paying the interest on the bonds or paying off and
retiring bonds issued pursuant to this article.
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§17-26-4. Safe road bond debt service fund; sources used to pay bonds and interest; investment of remainder.
All funds deposited to the credit of the safe road bond debt
service fund shall be kept by the treasurer of the state in a
separate account and all money belonging to the fund shall be
deposited in the treasury to the credit of the fund.
The fund shall be applied by the treasurer of the state for
payments on the principal and interest on bonds sold pursuant to
this article as it becomes due and payable. The remainder of the
fund, if any, shall be invested by the state board of investments
in the manner authorized under article six, chapter twelve of this
WVC 17 - 26 - 5
§17-26-5. Covenants of state.
The state of West Virginia covenants and agrees with the
holders of the bonds issued pursuant hereto as follows: (1) That
the bonds shall constitute a direct and general obligation of the
state of West Virginia; (2) that the full faith and credit of the
state is hereby pledged to secure the payment of the principal and
interest of the bonds; (3) that an annual state tax shall be
collected in an amount sufficient to pay, as it may accrue, the
interest on the bonds and the principal thereof; and (4) that the
tax shall be levied in any year only to the extent that the moneys
transferred to the safe road bond debt service fund as provided in
sections three and four, of this article which are irrevocably set
aside and appropriated for and applied to the payment of the
interest on and principal of any bond becoming due and payable in
such year are insufficient therefor.
WVC 17 - 26 - 6
§17-26-6. Sale by governor; minimum price; certification of annual debt service amount.
The governor shall sell the bonds herein authorized at a time
or times as provided by a resolution enacted by the Legislature.
The governor, in his or her discretion, may, by executive message,
request that a resolution be proposed for the issuance of bonds
pursuant to this article. The governor shall determine the manner
by which bonds will be sold. On or before the first day of June in
each fiscal year the commissioner shall certify to the treasurer
and secretary of the department of tax and revenue the principal
and interest requirement for the following fiscal year on any bonds
issued pursuant to this article.
WVC 17 - 26 - 7
§17-26-7. Conflicts of interest.
No part of the proceeds from the sale of bonds under this
article may inure to the benefit of or be distributable to the
officers, employees of the state except to pay reasonable
compensation for services rendered to the state. Any person
violating the provisions of this section shall be guilty of a
misdemeanor and, upon conviction thereof, shall be fined not more
than one thousand dollars, or confined in jail not more than one
year, or both fined and imprisoned.
WVC 17 - 26 - 8
§17-26-8. State road bonds lawful investments.
All state road bonds issued pursuant to this article shall be
lawful investments for banking institutions, societies for savings,
building and loan associations, savings and loan associations,
deposit guarantee associations, trust companies, insurance
companies, including domestic for life and domestic not for life
WVC 17 - 26 - 9
§17-26-9. Refunding bonds.
Any state road general obligation bonds which are outstanding
may at any time be refunded by the issuance of refunding bonds in
an amount deemed necessary to refund the principal of the bonds to
be refunded, together with any unpaid interest thereon; to
accomplish the purpose of the amendment and to pay any premiums
and commissions necessary to be paid in connection therewith. Any
refunding may be effected whether the state road general obligation
bonds to be refunded shall have then matured or shall thereafter
mature. Any refunding bonds issued pursuant to this article shall
be payable from the safe road bond debt service fund.
WVC 17 - 26 - 10
§17-26-10. Termination or dissolution.
Upon the termination or dissolution of the West Virginia
division of highways, all rights and properties of the West
Virginia division of highways with respect to the safe road bond
debt service fund shall pass to and be vested in the state, subject
to the rights of bondholders, lienholders and other creditors.
WVC 17 - 26 - 11
§17-26-11. Treasurer to determine financial advisor.
The treasurer, in his or her discretion, may select a
competent person or firm to serve as financial advisor for the
issuance and sale of general obligation bonds issued pursuant to
WVC 17 - 26 - 12
§17-26-12. Governor to determine bond counsel.
The governor shall select a competent person or firm to serve
as bond counsel who shall be responsible for the issuance of a
final approving opinion regarding the legality of the sale of
general obligation bonds issued pursuant to this article.
Notwithstanding the provisions of article three, chapter five of
this code, bond counsel may represent the state in court, render
advice and provide other legal services as may be requested by the
governor, the secretary or the commissioner regarding any bond
issuance pursuant to this article and all other matters relating to
the bond issue. The governor may also, in his or her discretion,
select a person or firm to serve as underwriter for any issuance
pursuant to this article.
WVC 17 - 26 - 13
§17-26-13. Approval and payment of all necessary expenses.
All necessary expenses, including legal expenses, incurred in
the issuance of any general obligation bonds pursuant to this
article shall be paid out of the safe road bond debt service fund.
The amount of any expenses incurred shall be certified to the
commissioner of highways.
WVC 17 - 26 - 14
§17-26-14. Dedication of tax.
(a) There shall be dedicated an annual amount from the
collections of the tax imposed pursuant to section three, article
fourteen, chapter eleven of this code, sufficient to pay the
principal and interest of any state road bonds issued pursuant to
(b) Beginning in the month of July, in the fiscal year in
which bonds are first issued, and monthly thereafter, there shall
be deposited into the safe road bond debt service fund an amount
equal to one tenth of the projected annual principal, interest
requirements, as certified by the commissioner, on all bonds issued
pursuant to this article, of the tax collected pursuant to article
fourteen, chapter eleven of this code.