Chap. 83.—An ACT to amend and ‘re-enact an act of assembly entitled: An
act to authorize the several school boards of the school disticts in this State
to borrow money belonging to the literary fund for certain purposes and to
authorize the loan of said funds for each district, approved March 15, 1906,
extending the same privileges to cities.

Approved February 25, 1908.

1. Be it enacted by the general assembly of Virginia, That an act
entitled “an act to authorize the several school boards of the school
districts in this State to borrow money belonging to the literary fund
for certain purposes and to authorize the loan of said funds to each
district,” approved March fifteenth, nineteen hundred and six, be
amended and re-enacted to read as follows:

§1. Be it enacted by the general assembly of Virginia, That the State
board of education be, and it is hereby, authorized to loan to the school
boards of the school districts and cities in this State making applica-
tion therefor, money belonging to the literary fund and in hand for
investment for the purpose of erecting school-houses in such districts
and cities, on the terms and conditions hereinafter set forth and subject
to such rules and regulations as may be promulgated by the said board.

§2. The several school boards in this State, as aforesaid, are hereby
authorized to borrow monev belonging to the said literary fund, and
the district or city school board desiring to borrow a part of said fund
shall make written application to the State board of education and shall
set forth therein (one) the amount of the proposed loan; (two) the
plans and specifications, estimated cost and location of the building to
be erected; and (three) facts showing the advisability of erecting the
same.

§3. Upon the approval of the State superintendent of public instruc-
tion of the plans and specifications for and the location of the proposed
building and of the making of the loan, the State board of education
may, in its discretion, make such loan: provided, that no such loan for
any one building shall exceed the sum of ten thousand dollars, nor shall
it exceed fifty per centum of the cost of the same, and no loan shall be
made to aid in the erection of a building to cost less than two hundred
and fifty dollars.

§4. All loans not exceeding three thousand dollars shall bear interest
at the rate of four per centum per annum, payable annually on the

day of ——_—_——., the principal thereof shall be payable
in fifteen annual installments, and shall be evidenced by bonds or notes
payable to the Commonwealth of Virginia for the benefit of the literary
fund, executed or signed by the chairman of the school boards of each
district and attested by the clerk thereof. Payments of interest and
principal shall be made to the State treasurer through the second auditor
and evidences of debt taken for such loans shall be deposited with second
auditor and kept by him.

§5. The school boards borrowing funds under the provisions of this
act shall request the board of supervisors or the councils of their re-
spective counties or cities or towns to cause a district tax to be levied
sufficient to meet its liabilities on such contract: and in the event that
such board shall fail to pay any installment of interest or principal
promptly, then upon notice in writing to that effect from the second
auditor or from the State superintendent of public instruction, the
county or city treasurer or other person having the custody of the
district funds of such district shall pay to the State treasurer, through
the second auditor, any such past due installment of interest or prin-
cipal out of any district funds in his hands belonging to the district
or school board. The failure of the school board of a district or city,
or the board of supervisors, or the council of a city or town to provide
for the payment of such loan shall be deemed a cause for removal from
office.

§6. Before making any loan under this act, the State board of edu-
cation shall be satisfied that the school district or board borrowing the
fund has a good and sufficient title in fee to the real estate on which
the proposed building is to be erected, and that the same is free from
incumbrances, and shall take proper measure to secure the expenditures
of the money for the purpose for which it is loaned.

87. The board of education by reasonable rules and regulations, shall
provide for an equitable distribution of the funds loaned under this
act amongst the several school districts and sections of the State.

§8. The said several school boards or districts of the State making
application therefor, may borrow monev belonging to the literary fund,
if it shall seem wise to the State board of education to grant the loan
in any particular case or cases, .to the extent of ten thousand dollars
for any one building: provided, that all loans under this section of this
act shall bear interest at the rate of five per centum per annum payable
annually, on all amounts loaned in excess of three thousand dollars as
aforesaid, and the principal thereof shall be payable in fifteen annual
installments, but the provisions of the preceding sections of this act
shall apply to said loans except as modified in this section, but in no
event shall more than fifty per cent. of the cost of the building be
loaned and the local authorities shall keep the building insured for
benefit of the literarv fund. There shall also be a specific lien upon
the property upon which any loan is made under this section for the
payment of said installments of interest and principal, and the State
board of education shall not make any such loan in any case in which
the payment of said loan would entail, in its judgment, too heavy a
charge upon the local revenues of the board or district.

For the purpose of providing a fund for making the loans provided
for in this section the said board of education may convert the present
securities of the literary fund into cash, if it shall deem it wise and
expedient so to do, to an extent not greater than one hundred thousand
dollars per annum.

2. There being a number of school houses awaiting completion an
emergency is declared to exist, and this act shall be in force from its
passage.