Chap. 133.—An ACT to amend and re-enact Section 675 of the Code of Virginia,
as heretofore amended, relating to temporary loans to school boards and ex-
penditures of funds for school purposes. [S B 156]

Approved March 6, 1940

1. Be it enacted by the General Assembly of Virginia, That
section six hundred and seventy-five of the Code of Virginia, as here-
tofore amended, be amended and re-enacted so as to read as follows:

Section 675. No school board in any county or city shall here-
after borrow any money in any manner for any purpose without
express authority of law heretofore or hereafter, or by this section
conferred. Any loan negotiated in violation of this section shall be
void, except that the prohibitions of this section shall not apply to
any loan made prior to June twenty-third, nineteen hundred and
twenty-six, or to any renewal thereof. The school board of any
county or the school board of any city, which may find it necessary
to make a temporary loan, or loans, is hereby authorized to borrow
a sum, or sums, of money not to exceed in the aggregate one-half of
the amount produced by the county school levy laid in such county
or city for the year in which such money is so borrowed, or one-half
of the amount of the cash appropriation made for schools in such
county or city for the preceding year. Such loans shall be evidenced
by notes or bonds negotiable or non-negotiable, as such board may
determine; shall bear interest at a rate not exceeding six per centum
per annum, and shall be repaid within one year of their date, pro-
vided, however, that no such loans shall be negotiated by a county
or city school board without the approval of the tax levying body.
No county school board, nor city school board shall expend, or con-
tract to expend, in any fiscal year, any sum of money in excess of the
funds available for school purposes for that fiscal year, without the
consent of the tax levying body. Any member of a county school
board, or of a city school board, or any division superintendent, or
other school officer vivlating, or causing to be violated, or voting to
violate, any provision of this statute, shall be guilty of malfeasance
in office and shall be removed from office by the circuit court of the
county, or corporation court of the city, upon proper proof of such
violation.

2. An emergency existing, this act shall be in force from its
passage.