32.1-174.1 - Bonds of permit holders.
§ 32.1-174.1. Bonds of permit holders.
A. The Board may by regulation require owners holding or issued permits forwaterworks pursuant to this article, to post bonds or deposit funds to beplaced in escrow.
B. The Board or the governing body of a county, city or town in which awaterworks is located may request the circuit court having jurisdiction wherethe waterworks is located to order forfeiture of the owner's bond or escrowaccount when:
1. The owner fails to pay the electric utility bills for the waterworks;
2. The owner ceases to operate the waterworks; or
3. The owner fails to provide water to his customers for a period of timegreater than forty-eight hours except when a natural disaster prevents theowner from supplying water.
The court shall order forfeiture of such bond or escrow account, in whole orin part, if any of the three foregoing conditions is met unless the courtfinds the forfeiture would result in manifest injustice.
C. In addition to ordering such forfeiture, the court may, with theconcurrence of the governing body of the county, city or town in which thewaterworks is located, place the waterworks in receivership naming thecounty, city, or town, or any public service authority created by the county,city or town, as receiver.
D. Any sums forfeited pursuant to subdivision 1 of subsection B of thissection shall be paid in the amount of such forfeiture to the electricutility supplying electrical power to the waterworks. Any sums forfeitedpursuant to subdivision 2 or 3 of subsection B shall be paid in the amount ofsuch forfeiture to the county, city or town in which the waterworks islocated (i) if the county, city, or town, or a public service authoritycreated by the county, city or town, initiates eminent domain proceedings forthe condemnation of the waterworks within one year of the date of the orderof forfeiture or (ii) if the county, city, town or public service authorityoperates the waterworks pursuant to a decree of an appropriate circuit courtvesting receivership of the waterworks in the county, city, town or publicservice authority. If the governing body of the county, city, or town, or apublic service authority created by the county, city or town, fails toinitiate such condemnation proceedings within one year of the date offorfeiture of any bond or to accept receivership of the waterworks from thecircuit court, the funds forfeited shall be paid to the general fund of theCommonwealth.
E. The Board may adopt regulations for determining the amount of the bond orfunds to be placed in escrow based upon the number of persons served, thenumber of connections served, and the water supply capacity of the permitholder.
F. No state, local or other governmental agency shall be required to post abond or deposit funds. The Board may, by regulation, exempt classes of permitholders from such requirements if the Board determines such classes presentno significant risks to public health and safety.
G. An acceptable bond for the purposes of this section shall be a bond issuedby a fidelity or surety company authorized to do business in Virginia, apersonal bond secured by such collateral as the Board may require or a cashbond.
(1980, c. 402.)