CHAPTER 697

An Act to amend and reenact §§ 2, 4 and 6 of Chapter 494 of the Acts of
Assembly of 1960, approved March 31, 1960, which created The State
Education Assistance Authority, the amended sections relating to
purposes of the act, powers of the Authority and the purchasing of
contingent interests in obligations from banks. _ CH 648]

Approved April 6, 1966

Be it enacted by the General Assembly of Virginia:

1. That §§ 2, 4 and 6 of Chapter 494, of the Acts of Assembly of 1960,
approved March 31, 1960, be amended and reenacted as follows: _

§ 2. In order to facilitate the * education of residents in this State
within the State and promote the industrial and economic development of
the Commonwealth, The State Education Assistance Authority (herein-
after created) is hereby authorized and empowered to buy and sell obli-
gations of students at State-supported or private institutions of higher
education, or vocational schools accredited by a nationally recognized
accrediting agency or by a State agency designated by the Governor, and
representing loans made to such students for the purpose of obtaining an
education; provided further that The State Education Assistance Author-
ity may, in addition, buy and sell obligations of Virginia students at insti-
tutions which * such students attend in order to become veterinarians
under arrangements made by The Board of Control for Southern Regional

ucation. ! re

No act or undertaking of the Authority shall be deemed to constitute
a debt of the Commonwealth or of any political subdivision thereof or a
pledge of the faith and credit of the Commonwealth or of any such political
subdivision, but shall be payable solely from the funds of the Authority.
All such acts and undertakings shall contain on the face thereof a state-
ment to the effect that neither the Commonwealth nor the Authority shall
be obligated to pay the same or the interest thereon except from revenues
of the Authority and that neither the faith and credit nor the taxing
power of the Commonwealth or of any political subdivision thereof is
pledged to the payment of the principal of or the interest on such acts
and undertakings.

All expenses incurred in carrying out the provisions of this act shall
be payable solely from funds provided under the provisions of this act
and no liability or obligation shall be incurred by the Authority hereunder
beyond the extent to which moneys shall have been provided under the
provisions of this act.

§ 4. The Authority is hereby authorized and empowered:

(a) To fix and revise from time to time and charge and collect fees
for its acts and undertakings;

_ (b) To establish rules and regulations concerning its acts and under-

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~ (e) To acquire, hold and dispose of personal property in the exercise
of its powers and the performance of its duties;

To make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of its
powers under this act;

(e) To employ, in its discretion, consultants, attorneys, accountants,
and financial experts, superintendents, managers and such other employees
and agents as may be necessary in its judgment, and to fix their compen-
sation to be payable from funds made available to the Authority by law;

f) To receive and accept from any federal or private agency, cor-
poration, association or person grants or loans to be expended in accom-
plishing the objectives of the Authority, and to receive and accept from
the Commonwealth, from any municipality, county or other political sub-
division thereof and from any other source, aid or contributions of either
money, property, or other things of value, to be held, used and applied only
for the purposes for which such grants and contributions may be made;

(g) To sue and to be sued; to have a seal and to alter the same at its
pleasure; and to make and from time to time amend and repeal bylaws,
rules and regulations not inconsistent with law to carry into effect the
powers and purposes of the Authority;

(h) To do all other acts and things necessary or convenient to carry
out the powers expressly granted in this Act; provided, however, that
nothing in this act shall be construed to empower the Authority to engage
in the business of banking or insurance.

§ 6. With the funds available to the Authority, for purposes other
than the payment of personnel and the lease or rental of offices or equip-
ment, the Authority may acquire from any bank or other lending institu-
tion of this State a contingent interest * in any individual obligation; the
total contingent interest of the Authority on all such obligations shall not
exceed at any one time a sum equal to twelve and one-half times the total
funds which the Authority can employ to acquire such contingent interests.
When the Authority acquires any such contingent interest, it may require
the payment to it of a portion of the interest payable upon any such
obligation. In each such acquisition, the Authority shall provide that at
such time as the obligation becomes delinquent, the bank or other lending
institution shall notify the Authority forthwith and shall transfer forth-
with to the Authority, by assignment or otherwise, an interest in such
obligation equal to the contingent interest of the Authority therein. The
bank or other lending institution and the Authority shall forthwith take
such steps as may be necessary to recover the balance due upon any such
obligation; any such recovery shall be apportioned between the Authority
and the bank or other lending institution as their respective interests may
appear.