Chap. 101.—An ACT to amend and re-enact Section 642 of the Code of Vir-
ginia, as heretofore amended, relating to restrictions upon making eae
retirement of previous loans. [S B 73]

Approved March 10, 1938

1. Beit enacted by the General Assembly of Virginia, That section
six hundred and forty-two of the Code of Virginia, as heretofore
amended, be amended and re-enacted so as to read as follows:

Section 642. Restrictions Upon Making Loans; Retirement of
Previous Loans.—The State Board of Education may, in its discretion,
make such loan, but no such loan shall exceed three-fourths of the
cost of the schoolhouse, addition thereto, and site, on account of
which such loan is made, nor shall it exceed one hundred thousand
dollars. No loan shall be made to aid in the erection of a building or
addition to cost less than five hundred dollars. Whenever such loan
is made for the purpose of enlarging a schoolhouse, any part of the
proceeds of such loan may, in the discretion of the State board, be
used to retire any previous loan, or loans, on such schoolhouse, although
not matured at the time of such additional loan. No loan shall be
made in any case in which the payment of the same with interest would,
in the judgment of the State Board of Education, entail too heavy a
charge upon the revenues of the county or city to which such loan
is granted. Nor in the discretion of the State Board of Education
shall any loan from the literary fund be made to any school board
which is in default in the payment of any part of the principal of any
previous loan from the literary fund made to said board or its prede-
cessors in office, nor to any board which for the two years next
preceding said loan has been more than six months in default in the
payment of interest due on any such loan.