Chap. 337.—An ACT to amend and re-enact Section 642 of the Code of Virginia,
as amended, relating to loans to school boards from the Literary Bund.
[

B 237]
Approved March 27, 1946

Be it enacted by the General Assembly of Virginia:

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

Section 642. Restrictions upon making loans; retirement of previ-
ous loans.—The State Board of Education may, in its discretion, make
such loan, but no such loan shall exceed one hundred per cent of the cost
of the schoolhouse, addition thereto, and site, on account of which such
loan is made. 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 pro-
ceeds 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 same with interest would, in the judg-
ment 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 Lit-
erary Fund made to the board or its predecessors in office, nor to any
board which for the two years next preceding the loan has been more
than six months in default in the payment of interest due on any such
loan.