Chap. 4.—An ACT to amend an act entitled “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 Recovery 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 privilege 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 thereot, 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 and projects,”
approved September 12, 1933, as heretofore amended, so as to grant and
confirm the power of educational institutions under said act and the title
thereof, to borrow money from and issue bonds to others than the United
States of America. [S B 4]

Approved December 24, 1936

1. Be it enacted by the General Assembly of Virginia, That section
six of an act entitled “An act to authorize and empower educational
institutions of the State to erect buildings and to make other improve-
ments 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 Recovery Act, approved June six-
teenth, nineteen hundred and thirty-three, 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 privilege of purchase buildings and
projects constructed pursuant to the provisions of said National Indus-
trial 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
and projects,’ approved September twelfth, nineteen hundred and
thirty-three, be and the same hereby is amended so as to read as follows:

Section 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 aggregate 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, en-
graving, 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,
either coupon or registered, carry such registration privileges, be
executed in 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 interest 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 purposes
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
contain a provision, which shall be a pare 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 regulate
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 projects 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
pursuant 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 indirectly 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 or prior to
the time of entering into any contract for the sale 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 con‘rary notwithstanding, any bonds issued pursuant 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.

(h) This act shall be construed to authorize educational institutions
hereunder to borrow money from and issue bonds to others than the
United States of America.

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