Chap. 78.—An ACT to amend and re-enact Section 675 of the Code of Virginia, as
amended, relating to certain loans to school boards. [H 178]

Approved February 28, 1944

Be it enacted by the General Assembly of Virginia:

1. That section six hundred seventy-five of the Code of Virginia, as
amended, be amended and re-enacted, as follows:

Section 675. No school board in any county or city shall hereafter
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 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 ag-
gregate 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 the board determines ;
shall bear interest at a rate not exceeding six per centum per annum, and
shall be repaid within one year of their date, provided that no such loans
shall be negotiated by a county or city school board without the approval
of the tax levying body. In order to purchase new school buses when
same become available to replace obsolete or worn-out equipment, school
boards are empowered, with the approval of the tax levying body and
subject to other provisions of this section not inconsistent herewith, tu
borrow such sum or sums as are needed for that purpose; such loans
shall be evidenced by notes or bonds negotiable or non-negotiable as the
board determines, shall bear interest at a rate not exceeding six per
centum per annum and shall be repaid within not less than five years
of their date. No county school board, nor city school board shall expend,
or contract 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 violating, or causing to be violated, or voting to violate, any pro-
vision 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.