Chap. 46.—An ACT to prohibit school boards of counties, cities and towns from
borrowing money except under express authority of law; to declare any
loan negotiated by any such board without authority of law to be utterly
void ; to authorize local school boards to borrow money on short time loans,
with certain restrictions; to prohibit every such school board from borrow-
ing money under any general statute in force the day before this act takes
effect, and from expending, or contracting to expend in any fiscal year, any
sum of money in excess of the funds available for that fiscal year unless
in each case the board of supervisors of the county, or the council of the
city or town, as the case may be, shall first approve the same; to provide
for the removal from office of any member of a school board knowingly
violating, or voting to violate any provision of this act; and to repeal an
act entitled an act authorizing district or city school boards to borrow
money on short time loans, approved March 16, 1918. {S B 13]

Approved February 26, 1926.

Be it enacted by,the general assembly of Virginia, as follows:

1. Noschool board of any county, city or town of this State shall
ereafter borrow any money in any manner for any purpose without
xpress authority of law, heretofore or hereafter, or by this act con-
erred. Any loan negotiated in violation of this section shall be
tterly void, except that this act shall not apply to any loan hereto-
ore obtained, or any renewal thereof.

2. Any school board of a county, or a city, or a town constituting
. separate school district which may find it necessary to make tem-
rary loans is hereby authorized to borrow a sum of money not: to
xceed one-half of the amount produced by the aggregate school levy
n such county, city or town for the year in which the loan is negotiated ;
uch loans to bear interest at the rate of not exceeding six per centum
yer annum and to be repaid within five years from their date; pro-
rided, however, that no such loan shall be negotiated by a county
chool board without the permission and approval of the county board
of supervisors, and no such loan shall be negotiated by a city school
poard or by a school board in a town constituting a separate school
listrict, without the approval of the city or town council.

3. No school board of any county, city or town of this State shall
hereafter borrow any money under any general statute in force the
day before this act takes effect, or expend, or contract to expend, in
any fiscal year, any sum of money in excess of the funds available for
that fiscal year, unless in each case the board of supervisors of the
county, in the case of a county school board, or the council of the city,
in the case of a city school board, or the council of the town, in the
case of a town school board, shall first approve the same by order,
ordinance or resolution adopted after a public hearing of which thirty
days public notice shall have been previously given. This section
shall not be construed to affect in any manner the existing general
law on the issuance of bonds for school purposes in which provision
_ made for a vote of the people on the question of the issuance of the

nds.

4. Any member of any school board of any county, city or town
knowingly violating, dr voting to violate, any provision of this act,
may be removed from office for that cause in the manner provides
by sections twenty-seven hundred and five and twenty-seven hun
dred and six of the Code of Virginia.

5. An act entitled an act authorizing district or city schoc
boards to borrow money on short time loans, approved March six
teenth, nineteen hundred and eighteen, is hereby repealed. ~