Chap. 252.—An ACT to authorize the several school boards of the sct
districts in this State to borrow money belonging to the literary fund
certain purposes, and to authorize the loan of said funds to each district.

Approved March 15, 1906.

1. Be it enacted by the gencral assembly of Virginia, That the Si
board of education he, and it is hereby, authorized to loan to the scl
boards of the school districts in this State making application there
money belonging to the literary fund and in hand for investment for
purpose of erecting school-houses in such districts, on the terme and ¢
ditions hereinafter set forth and subject to such rules and regulation:
may be promulgated by the said board.

2. The several school boards of the school districts in this State
hereby authorized to borrow money belonging to the said literary fu
and the district school boards of any district desiring to borrow a jf
of said fund shall make written application to the State board of edt
tion and shall set forth therein (one) the amount of the proposed lo
(two) the plans and specifications, estimated cost and location of
building to be erected; and (three) facts showing the advisability
erecting the same.

3. Upon the approval of the State superintendent of public instr
tion of the plans and specifications for and the location of the propo
building and of the making of the loan, the State board of education m
in its discretion, make such loan: provided, that no such loan for any
building shall exceed the sum of three thousand dollars, nor shal!
exceed fifty per centum of the cost of the same, and no loan shall
made to aid in the erection of a building to cost less than two hundred :
fifty dollars.

4. All such loans shall bear interest at the rate of four per centum
annum, payable annually on the —————- day of ——_______,,
principal thereof shall be payable in ten annual installments, and st
he evidenced by bonds or notes payable to the Commonwealth of Virgi
for the benefit of the literary fund, executed or signed by the chairn
of the school boards of each district and attested by the clerk ther
Payments of interest and principal shall be made to the State treast
through the second auditor and evidences of debt taken for such Io
shall he deposited with second auditor and kept by him.
5. The district school boards of a district borrowing funds under the
provisions of this act shall request the board of supervisors of their re-
spective counties to cause a district tax to be levied sufficient to meet its
liabilities on such contract; and in the event that such board shall fail to
pay any installment of interest or principal promptly, then upon notice
in writing to that effect from the second auditor or from the State super-
intendent of public instruction, the county treasurer or other person
having the custody of the district funds of such district shall pay to the
State treasurer, through the second auditor, any such past due installment
of interest or principal out of any district funds in his hands belonging
to such district. The failure of the school board of a district to provide
for the payment of such loan shall be deemed a cause for removal from
office.

6. Before making any loan under this act, the State board of education
shall be satisfied that the school district borrowing the fund has a good
and sufficient title in fee to the real estate on which the proposed build-
ing is to be erected, and shall take proper measure to secure the expendi-
tures of the money for the purpose for which it is loaned.

7. The board of education by reasonable rules and regulations, shall
provide for an equitable distribution of the funds loaned under this act
amongst the several school districts and sections of the State.