Chap. 359.—An ACT to amend and re-enact section 4 and section 8 of an act
of assembly entitled an act to authorize the several school boards of
the school districts in this State to borrow money belonging to the
literary fund for certain purposes, and to authorize the loan of said
funds for each district, approved March 15, 1906, extending the same
privileges to cities, as amended and re-enacted by an act approved
February 25, 1908. (S. B. 131.)

Approved March 27, 1914.

1. Be it enacted by the general assembly of Virginia, That
<ection four and section eight of an act to authorize the several
school boards of the school districts in this State to borrow money
belonging to the literary fund for certain purposes, and to author-
jze the loan of said funds for each district, approved March fif-
teenth, nineteen hundred and six, as amended by an act approved
February twenty-fifth, nineteen hundred and eight, be amended and
re-enacted to read as follows:

Sec. 4. All loans not exceeding three thousand dollars shall
bear interest at the rate of three per centum per annum, payable
annually on the ............ day of ........ ccc eee , the
principal thereof shall be payable in fifteen annual installments,
and shall be evidenced by bonds or notes payable to the Common-
wealth of Vireinia for the benefit of the literary fund,- executed
or signed by the chairman of the school boards of each district and
attested by the clerk thereof. Payments of interest and principa}
shall be made to the State treasurer through the second auditor
and evidences of debt taken for such loans shall be deposited with
second auditor and kept by him.

Sec. 8. The said several school boards or districts of the State
making application therefor may borrow money belonging to the
literary fund, if it shall seem wise to the State board of education
to grant the loan in any particular case or cases, to the extent of
ten thousand dollars for any one building: provided, that all loans
under this section of this act shall bear interest at the rate of four
per centum per annum, payable annually, on all amounts loaned in
excess of three thousand dollars as aforesaid, and the principal
thereof shall be payable in fifteen annual installments, but the pro-
visions of the preceding sections of this act shall apply to said loans
except as modified in this section, but in no event shall more than
fifty per centum of the cost of the building be loaned and the local
authorities shall keep the building insured for benefit of the literary
fund. There shall also be a specific lien upon the property upon
which any loan is made under this section for the payment of said
installments of interest and principal, and the State board of edu-
cation shal! not make any such loan in any case in which the pay-
ment of said loan would entail. in its judgment, too heavy a charge
upon the local revenues of the board or district. This act shall
apply to all loans heretofore made as well as future loans.