Said bonds or other obligations shall be sold at public or private sale. In case any of
the officers whose signatures appear on the bonds or coupons or other obligations
shall cease to be such officers before delivery thereof, 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 or other obligations
so issued shall bear interest at a rate not to exceed 5 per centum per annum, payable
semiannually. All such bonds or obligations shall be sold for not less than the principal
amount thereof plus accrued interest. All such bonds or obligations issued by the
Government of the Virgin Islands or by its authority shall be exempt as to principal and
interest from taxation by the Government of the United States, or by the Government of
the Virgin Islands, or by any State, territory, or possession or by any political
subdivision of any State, territory or possession, or by the District of Columbia. Such
bonds or obligations shall under no circumstances constitute a general obligation of
the Virgin Islands or of the United States.

 (ii) (A) Subject to the provisions of this paragraph (ii), the Legislature of the
Government of the Virgin Islands may cause to be issued such negotiable general
obligations bonds or other evidence of indebtedness as it may deem necessary and
advisable to construct, improve, extend, better, repair, reconstruct, acquire, and equip
hospitals, housing, schools, libraries, gymnasia, recreation areas, sewers,
sewage-disposal plants, and water systems and resources; and to construct,
improve, extend and better, repair, reconstruct, acquire, and equip any other public
improvement as may be authorized by the Legislature: Provided, That no public
indebtedness 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 Virgin Islands except
that in determining the amount of such public indebtedness there shall be excluded
that portion thereof for the funding or refunding of which bonds or other obligations
shall have been issued. Bonds or other evidence of indebtedness issued pursuant to
this paragraph (ii) 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 non-redeemable,
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 legislature of the government of the Virgin Islands. In case any of
the officers whose signatures appear on the bonds or coupons or other evidence of
indebtedness shall cease to be such officers before delivery thereof, 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 or other evidence of indebtedness so issued shall bear interest at a rate not to
exceed that specified by the legislature and payable semi-annually. All such bonds or
other evidence of indebtedness shall be sold for not less than the principal amount
thereof plus accrued interest. All such bonds or other evidence of indebtedness issued
by the Government of the Virgin Islands, 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


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