Chap. 49.—An ACT to authorize and empower educational institutions of the
State to erect buildings and to make other improvements to their plants and
for such purpose to borrow or accept money under the provisions of an act
of the Congress of the United States, known as the National Industrial Re-
covery Act, approved June 16, 1933, and any acts amendatory thereof, and
any acts supplemental thereto and revisions thereof, and any further act of
the Congress of the United States, and to issue bonds and certificates of
indebtedness and other obligations; to provide funds for the payment of the
principal of and the interest on the same and to secure such payment; and
to authorize and empower said institutions to lease with or without the privi-
lege of purchase buildings and projects constructed pursuant to the provisions
of said National Industrial Recovery Act and any acts amendatory thereof
and any acts supplemental thereto and revisions thereof, and any further act
of the Congress of the United States, and to acquire and convey such real

estate or other property as shall be required for such buildings i aT

Approved September 12, 1933

Be it enacted by the General Assembly of Virginia, as follows :

1. The College of William and Mary in Virginia, at Williamsburg ;
the Medical College of Virginia, at Richmond; the board of visitors of
the Virginia State School for Colored Deaf and Blind Children, at
Newport News; the State Teachers College, at Farmville; the State
Teachers College, at Fredericksburg; the State Teachers College, at
Harrisonburg; the State Teachers College, at Radford ; the rector and
visitors of the University of Virginia, at Charlottesville ; the Virginia
Military Institute, at Lexington ; the Virginia Agricultural and Me-
chanical College and Polytechnic Institute, at Blacksburg ; the Virginia
School for the Blind, at Charlottesville; the Virginia School for the
Deaf and the Blind, at Staunton, and the Virginia State College for Ne-
groes, at Petersburg, are hereby classified as educational institutions
and are declared to be public bodies and constituted as governmental
‘nstrumentalities for the dissemination of education. The powers of
every such institution derived directly or indirectly from this act shall
be vested in and exercised by a majority of the members of its board,
and a majority of such board shall be a quorum tor the transaction of
any business authorized by this act. . a

2. The following terms, wherever used or referred to in this act,
shall have the following meaning unless a siffetent meaning clearly ap-
pears from the context:

(a) The term “institution” shall mean any educational institution
referred to in section 1 hereof.

(b) The term “board” shall mean the board of visitors, board of
trustees, or other governing body, by whatever name known, of an
institution.

(c) The term “bonds” shall mean any bonds, certificates of indebt-
edness or other obligations of an institution issued by an institution
pursuant to this act.

(d) The term “Governor” shall mean the Governor of the State of
Virginia.

(e) The term “project” shall mean any building or improvement
involving an outlay of a capital nature which may be required by or
convenient for the purposes of an institution, including, without limita-
tion of the foregoing, administration, teaching, lecture and exhibition
halls, dormitories, dining halls, laundries, laboratories, hospitals, infirm-
aries, heating and power plants, heat, light and/or power systems, water,
sewer and/or drainage systems and sewage disposal plants.

({) The term “to erect” or “erection” shall include building, con-
structing, reconstructing, erecting, replacing, extending, bettering,
equipping, developing, embellishing and improving, or otherwise acquir-
ing the benefits of the expenditure of moneys in respect to a project.

(g) The term “National Industrial Recovery Act” shall mean the
act of the Congress of the United States of America, approved June
sixteenth, nineteen hundred and thirty-three, entitled an act to encourage
national industrial recovery, to foster fair competition, and to provide
for the construction of certain useful public works, and for other pur-
poses, and any acts amendatory thereof and any acts supplemental
thereto and revision thereof, and any further act of the Congress of
the United States of America to encourage public works, to reduce
unemployment and thereby to assist in the national recovery and pro-
mote public welfare.

(h) The term “Federal agency’ shall mean the President of the
United States, the Federal Emergency Administrator of Public Works,
or such other agencies as may be designated or created to make grants
or loans pursuant to the National Industrial Recovery Act.

_3. In addition to any powers to sue and be sued heretofore conferred
upon it, every institution shall have power, in its proper corporate name
and style, if any, to sue, and also power to be sued on any bonds, agree-
ments or other contractual or quasi-contractual obligations issued, made
or incurred pursuant to this act and for the enforcement thereof and
of any duty in connection therewith and of any debt thereon or evidenced
thereby and of any terms, provisions, conditions, or covenants con-
tained therein or made in connection with the issuance, making or
procuring thereof, and for the enforcement of any contract or agree-
ment with or liability of any nature to a Federal agency or the holders
of any bonds or any trustee therefor or representative thereof.
1933 | ACTS OF ASSEMBLY

In addition to the powers now enjoyed by it, every institution shall
lave power in its proper corporate name and style, if any:

(a) To have a common seal and alter the same at pleasure.

(b) To acquire and hold real or personal property or interests
herein in its own name.

(c) To execute all instruments necessary or convenient for the pur-
poses of this act. |

(d) With the consent of the Governor, to issue bonds and to pro-
vide for the rights of the holders thereof and to secure the same, all
as hereinafter provided. ,

(e) To perform any acts and do any things authorized by this act
under, through or by means of its own officers, agents or employees,
or by contracts with private corporations, firms or individuals.

(f£) To do all acts and things necessary or convenient to carry out
the powers and purposes expressly given in this act.

4. In addition to any other purposes provided by law or otherwise,
the purposes of every institution shall be to erect any project.

5. The consent of the Governor being first had and obtained, every
institution shall have power and is hereby authorized and empowered
to acquire by purchase, gift, or otherwise any project or to erect the
same, and in connection therewith to borrow money, incur indebted-
ness and make and issue its bonds as hereinafter provided, and to enter
into and perform all contracts and agreements and do all acts and
things necessary or proper, and further to make such contracts and
agreements and do and perform all such acts and things as may be
necessary, proper or advisable for the purpose of obtaining and/or
securing grants, loans and/or financial assistance of any kind or sort
in connection therewith under the National Industrial Recovery Act.

6. (a) Every institution shall have power and is hereby authorized
and empowered from time to time to make and issue its bonds in such
ageregate principal amount as may be determined upon by its board
and approved by the Governor. Such aggregate principal amount may
include without limitation any engineering or inspection costs or legal
or accounting expenses incurred by the institution in connection with
the project for the erection of which such bonds are issued, and the cost
of issuance of the bonds, including printing, engraving, advertising,
legal and other similar expenses.

(b) Such bonds shall be authorized by resolution of the board,
approved by the Governor, and may be issued in one or more series,
shall bear such date or dates, mature at such time or times, bear interest
at such rate or rates not exceeding six per centum per annum payable
at such time or times, be in such denominations, be in such form, eithet
coupon or registered, carry such registration privileges, be executed ir
such manner, be payable in such medium of payment, at such place or
places, be subject to such terms of redemption, with or without premium.
as such resolution or resolutions may provide. Such bonds may be sold
-at public or private sale for such price or prices as the board with the
approval of the Governor shall determine, provided that the interes'
cost to maturity of the money received for any issue of such bonds shall
not exceed six per centum per annum.

(c) Such bonds may be issued for the corporate purpose or pur-
poses of the institution specified by section four hereof or to carry out
the powers conferred on the institution by section five hereof.

(d) Any resolution or resolutions authorizing such bonds may con-
tain a provision, which shall be a part of the contract with the holders
of such bonds, as to

(1) pledging any or all revenues of the institution derived directly
or indirectly from the project for the erection of which the bonds are
issued to secure the payment of such bonds, and the determination of
the revenues and receipts to be derived directly or indirectly from the
project for the erection of which the bonds are to be issued and the
cost or expenses of the operation and maintenance thereof;

(2) the operation and maintenance of the project:

(3) the amount or amounts to be charged and collected as fees,
rents or charges for or in connection with the use, occupations, products
and/or Services of the project or any services rendered therein, and
the amount to be raised in each year thereby in revenues of any kind
and the use and disposition of any or all such revenues;

(4) the setting aside of reserves or sinking funds, and the regula-
tion and disposition thereof ;

(5) limitations on the right of the institution to restrict and regu-
late the use, occupation, products and/or services of the project, or the
services rendered therein;

(6) limitations on the purpose to which the proceeds of sale of any
issue of bonds then or thereafter to be issued may be applied ;

(7) limitations on the issuance of additional bonds:

(8) the procedure, if any, by which the terms of any contract with
holders of such bonds may be amended or abrogated; the amount of
bonds the holders of which must consent thereto, and the manner in
which such consent may be given;

(9) any other matter required by the United States of America or
any Federal agency as a condition precedent to or a requirement in
connection with the obtaining of a direct grant or grants of money for
or in aid of the erection of any project, or to defray or partially to
defray the cost of labor and material employed in the erection of any
project, or to obtain a loan or loans of money for or in aid of the
erection of any project from-the United States of America or any
Federal agency.

(e) The power and obligation of an institution to pay any bonds
issued under this act shall be limited. Such bonds shall be payable
only from the revenues and receipts derived directly or indirectly from
the project for the erection of which the bonds are issued. Such bonds
shall in no event constitute an indebtedness of the institution, excepting
to the extent of the collection of such revenues and receipts and such
institution shall not be liable to pay such bonds or interest thereon: from
any other funds; and no contract entered into by the institution pur-
1933] ACTS OF ASSEMBLY 87

suant to sub-division (b) of this section six shall be construed to permit
or require the costs or expenses of operation and maintenance of the
project for the erection of which the bonds are issued to be paid out of
any funds other than the revenues and receipts derived directly or in-
directly from such project. The revenues and receipts to be deemed
as derived directly or indirectly from the project for the erection of
which the bonds are to be issued and the costs and expenses of the
operation and maintenance thereof shall be determined by resolution
of the board, approved by the Governor at the time of entering into
any contract with any Federal agency for the purchase of the bonds
and also within sixty days after the end of each year after the date of
the bonds. In making such determination the board must exclude all
funds received or receivable from the State. Any provision of the
general laws to the contrary notwithstanding, any bonds issued pur-
suant to the authority of this act shall be fully negotiable within the
meaning and for all the purposes of chapter two hundred and thirty-
three of the Code of Virginia, as amended. »

(f) Neither the Governor nor the members of the board nor any
person executing such bonds shall be liable personally on the bonds or
be subject to any personal liability or accountability by reason of the
issuance thereof.

(g) The institution shall have power out of any funds available
therefor to purchase any bonds issued by it at a price not more than
the principal amount thereof and the accrued interest. All bonds so
purchased shall be cancelled. This paragraph shall not apply to the
redemption of bonds.

7. (a) The provisions of this section seven shall be applicable to
an issue of bonds only if the resolution or resolutions authorizing such
bonds shall provide in substance that the holders of such bonds are
entitled to all the benefits of and subject to the provisions of this section
seven.

(b) In the event that any institution shall default in the payment
of principal of or interest on any series of its bonds after the same
shall become due, whether at maturity or upon call for redemption, and
such default shall continue for a period of thirty days, or in the event
that such institution shall fail or refuse to comply with the provisions
of this act, or shall default in any agreement made with the holders
of its bonds of any series, the holders of twenty-five per centum in
aggregate principal amount of the bonds of such series then outstand-
ing, by instrument or instruments filed with the Governor and proved
or acknowledged in the same manner as a deed to be recorded, may
appoint a trustee to represent the holders of such series for the pur-
poses herein provided.

(c) Such trustees may, and upon written request of the holders of
twenty-five per centum in principal amount of the bonds of such series
then outstanding shall, in his or its own name:

(1) By mandamus or. other suit, action or proceeding at law
or in equity enforce all rights of the holders of bonds of such series,
including the right to require such institution and its board to collect
fees, rents, charges or other revenues adequate to carry out any agree-
ment as to, or pledge of, such revenues, and to require such institution
and board to carry out any other agreements with the holders of the
bonds of such series and to perform its and their duties under this act;

(2) Bring suit upon such bonds;

(3) By action or suit in equity, require such institution to account
as if it were the trustees of an express trust for the holders of such
bonds ;

(4) By action or suit in equity, enjoin any acts or things which may
be unlawful or in violation of the rights of the holders of such bonds;

(5) Declare all bonds of such series due and payable, and if all
defaults shall be made good, then with the consent of the holders of
twenty-five per centum of the principal amount of the bonds of such
series then outstanding, to annul such declaration and its consequences.

(d) Before declaring the principal of all such bonds due and pay-
able the trustee shall first give thirty days’ notice in writing to the board.

(e) .If the resolution or resolutions which authorize any bonds con-
tain the provision authorized by sub-division (a) of this section seven
and further provide in substance that any trustee appointed by the
holders of the bonds pursuant to this section seven shall have the
powers provided by this sub-division (e) of section seven, then any
such trustee, whether or not all such bonds have been declared due and
payable, shall be entitled as of right to the appointment of a receiver
who may enter and take possession of any property of the institution
any of the revenues from which are pledged for the security of the
bonds the holders of which are represented by such trustee and operate
and maintain the same and collect and receive all fees, rents, charges
and other revenues thereafter arising therefrom in the same manner
as the institution itself might do and shall deposit all such moneys
in a separate account and apply the same in such manner as the court
shall direct. In any suit, action or proceeding by the trustee the fees,
counsel fees and expenses of the trustee and of the receiver, if any,
shall constitute taxable costs and disbursements and all costs and dis-
bursements allowed by the court shall be a first charge on any fees,
rents, charges and other revenues of the institution pledged for the
security of the bonds.

({) Said trustee shall, in addition to the foresetuuy, have and pos-
sess all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general rep-
resentation of the holders of bonds represented by such trustee in the
enforcement and protection of their rights.

8. Every institution, upon the completion of the erection by or for
it of any project pursuant to this act and the acceptance thereof, is
hereby authorized and empowered, subject to and in accordance with
any contract with the holders of the bonds issued to finance the erec-
tion of such project, to operate and maintain the same and to charge
and collect for or in connection with the use, occupation, products
1933] ACTS OF ASSEMBLY

and/or services of such project or any services rendered therein, such
fees, rents and charges as such board shall deem proper so that the
project shall always have sufficient receipts and revenues to provide for
the payment of all expenses of operation and maintenance of the
project in addition to the discharge in due course of any liabilities and
debts of the institution incurred in connection with the project, and
to do all such other acts and things in connection with such operation
and maintenance and the charging and collection of such fees, rents
and charges as may be necessary, proper or convenient to carry out the
provisions of any contract with such holders of its bonds. Except as
any such contract of the institution shall provide otherwise, the fees,
rents and charges so collected by such institution or such portion
thereof as shall be required to discharge in due course any liability and
debt of the institution incurred in connection with the project shall
not be required to be paid into the State treasury but shall be disposed
of in accordance with the provisions of any such contract or, in the
absence of any such provisions, in the manner prescribed by section nine
hereof for the deposit of other moneys of such institution. Except as
any such contract of the institution shall provide otherwise, such fees,
rents and charges so collected by such institution may, in the discretion
of its board, be paid into the State treasury, and any sums of money
so paid into the State treasury shall be set aside as and constitute a
special fund devoted solely to the payment of the principal of and the
interest on the bonds of such institution and to the payment of any
costs, expenses or other charges of such institution in connection with
the acquisition, erection, lease, operation or maintenance of any project
from which such sums may be directly or indirectly derived, and are
hereby specifically appropriated for those purposes be paid out by the
State Treasurer on warrants of the Comptroller to be issued on vouch-
ers of the treasurer or other fiscal officer of the board of such institu-
tion.

9, All moneys derived from the sale of bonds of any institution or
otherwise borrowed by such institution under the provisions of this
act shall not be required to be paid into the State treasury but shall be
deposited by the treasurer or other fiscal officer of the institution in a
separate bank account or accounts in such bank or banks or trust com-
pany or trust companies as shall be designated by the board of such
institution and all deposits of such moneys shall, if required by the
board, be secured by obligations of the United States or of the State
of Virginia of a market value equal at all times to the amount of the
deposit and all banks and trust companies are authorized to give such
security for such deposits. Such moneys shall be disbursed as may be
directed by the board of said institution. This section shall not be
construed as limiting the power of the institution to agree in connec-
tion with the issuance of any of its bonds as to the custody and dis-
position of the moneys received from the sale of such bonds or the
revenues of the institution. 7

10. The board of every institution shall keep and preserve complete
and accurate accounts of all sums of money received and disbursed in
connection with the acquisition, erection, lease, operation and main-
tenance of any project including without limitation a complete and
accurate record of all amounts charged and collected as fees, rents and
charges in connection with such project and all sums disbursed for the
payment of the principal of or interest on or other debt service with
respect to any bonds issued pursuant to the authority of this act and
such annual portion of the said fees, rents or charges as shall not be
required to discharge in due course any obligation, liability or debt of
the institution incurred in connection with the project shall be paid
into the State treasury, as provided in section eight of this act. The
board shall prepare and transmit to the Governor, at such times as he
shall require, complete and accurate reports as to the state of such
accounts and records, together with such information as the Governor
may require with respect thereto.

11. All contracts for the erection of a project made by any institu-
tion shall be made, and all other matters in connection therewith or
with reference to the maintenance and operation of such project shall
be done, in the manner determined upon by the board of such institu-
tion. Nothing herein contained shall prevent such institution from
complying with and contracting to comply with any terms and condi-
tions imposed upon it in connection with any loans or grants made to
it by any Federal agency or to prevent the institution from doing any
acts or things in connection with such erection, operation or maintenance
by its own employees.

12. Any bonds issued pursuant to the authority of this act are
hereby made securities in which all public officers and bodies of this
State and all political sub-divisions thereof, all insurance companies and
associations, all savings banks and savings institutions, including sav-
ings and loan associations, in the State may properly and legally invest
funds in their control. | ,

13. In lieu of borrowing money and/or issuing its bonds for the
erection of any project, every institution is hereby authorized and em-
powered, subject to the approval of the Governor being first had and
obtained, to lease from any Federal agency, which shall be authorized
to execute such lease, either with or without the privilege of purchase,
any project which may be acquired or erected under the provisions of
the National Industrial Recovery Act, and to provide for the payment
of any sums required under the terms of the said lease in the same
manner as is herein provided for the payment of the principal of and
interest on bonds of such institution. Any institution proposing to
lease a project pursuant to the provisions of this section, may lease or
convey unto any Federal agency which shall be authorized to lease or
acquire any real estate for such purpose, so much real estate owned
by the said institution as shall be required for the project, and may
execute and deliver leases or deeds conveying the same and may do
all acts and things necessary or convenient in connection with the mak-
ing of such leases and the performance thereof.
1933 | ACTS OF ASSEMBLY 91

14. The bonds and other obligations of an institution shall not be
in any way a debt of the State and shall not create or constitute any
indebtedness or obligation of the State, either legal, moral or other-
wise, nor shall they be payable out of any funds other than those of
the institution and nothing in this act contained shall be construed to
authorize any institution to incur any indebtedness on behalf of or
in any way to obligate the State.

15. The acquisition, erection, leasing, operation and maintenance
of any project authorized by this act are in all respects for the benefit
of the people of the State of Virginia, for the increase of their pleasure,
knowledge and welfare and for “the dissemination of education among
them, and every institution shall be regarded as performing a govern-
mental function and shall be deemed to be an incorporated institution
of learning in carrying out its purposes and exercising its powers de-
rived from this act and, so far as may be consistent with the Consti-
tution of Virginia, shall be required to pay no taxes or assessments
of any kind whatsoever upon any project acquired, erected or leased
and operated and maintained by it and said project shall be exempt
from taxation, and in so far as may be permitted under the Constitu-
tion of Virginia the bonds of such institution shall be exempt from
taxation except for inheritance taxes.

16. The State of Virginia does pledge to and agree with the hold-
ers of the bonds issued by any institution that the State will not limit
or alter the rights hereby vested in such institution to establish and
collect such fees, rents and charges as may be convenient or necessary
to produce sufficient revenues to meet the expense of maintenance and
operation of the project for the erection of which such bonds were
issued and to fulfill the terms of any agreements made with the holders
of the bonds or in any way to impair the rights and remedies of such
holders, until the bonds, together with interest thereon, with interest
on any unpaid installments of interest, and all costs and expenses in
connection with any action or proceedings by or on behalf of such
holders are fully met and discharged.

17. The Governor is hereby vested with absolute discretion in re-
spect to the withholding or granting of any consent or approval re-
quired in connection with any act or thing authorized by this act.

18. When any institution shall have fully met and discharged its
bonds, together with interest thereon, with interest on any unpaid in-
stallments of interest, and all costs and expenses in connection with
any action or proceedings by or on behalf of the holders of such bonds
and shall have paid in full or otherwise discharged all its liabilities
incurred pursuant to this act, such institution shall pay into the State
treasury as now required by general law all such sum or sums of
money received by it pursuant to the provisions of this act or derived
from any project erected pursuant to this act as may then remain in its
possession or control. ,

19. Except as may be required in any contract or agreement of the
institution theretofore entered into by it with any Federal agency, no
institution shall borrow any money or enter into any lease pursuant
to the provisions of this act on and after two years and six months
from the day on which this act goes into effect.

20. If any section, clause or provision of this act shall be uncon-
stitutional or be ineffective in whole or in part, to the extent that it
is not unconstitutional or ineffective, it shall be valid and effective and
no other section, clause or provision shall on account thereof be deemed
invalid or ineffective, and the inapplicability or invalidity of any section,
clause or provision of this act in any one or more instances shall not
be taken to affect or prejudice in any way its applicability or validity
in any other instance.

21. In so far as the provisions of this act are inconsistent with
the provisions of any other act, general or special, or of the charter
or other organic law of any institution, the provisions of this act shall
be controlling.

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