§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

Summary

Allows the government of the Virgin Islands and its towns to issue general obligation bonds to pay for public works and redevelopment. That can include streets, bridges, ports, sewers and sewage plants, municipal buildings, schools, libraries, parks and athletic facilities, fire houses, electric and other utility systems, slum clearance, urban renewal, and low-rent housing. No town or the territorial government may borrow more than 10 percent of the total assessed value of its taxable real property. Bonds can have dates, amounts, maturities, and other terms set by the issuing government, but they cannot mature more than 30 years after issue. Signatures on bonds remain valid even if an officer leaves before delivery. Interest may not exceed 4 percent per year and is paid twice a year. Bonds must sell for at least their face value plus any accrued interest. They are exempt from federal, Virgin Islands, state, territorial, and D.C. taxes. The government and its towns must raise enough taxes to pay bond debt, even if that requires a rate higher than the 1.25 percent mentioned in another law.