Chap. 489.—An ACT to authorize the governing boards of certain State institu-
tions of ‘higher education to issue and sell, through the commissioners of
the sinking fund, and subject to the approval of the State Board of Educa-
tion, certificates of indebtedness in the names and on behalf of their in-
stitutions, respectively, to raise funds for dormitory construction purposes,
subject to the conditions and limitations contained in this act; to provide
for the payment of the interest thereon and the principal thereof at maturity,
and to authorize the State Board of Education to sell any State bonds held
as a part of the Literary Fund and to invest the proceeds derived from the
sale of such bonds in the certificates of indebtedness issued under the pro-

- visions of this act, such certificates so purchased to become a part of the
Literary Fund. [S B 61]
Approved March 25, 1926.

Be it enacted by the general assembly of Virginia, as follows:

1. Subject to the approval of the State board of education first
obtained, the governing boards of the University of Virginia, the Vir-
ginia Agricultural and Mechanical College and Polytechnic Institute,
the College of William and Mary in Virginia, the State Teachers
Colleges at Farmville, Radford, Harrisonburg, and Fredericksburg,
the Virginia Military Institute, and the Virginia Normal and Indus-
trial Institute are hereby severally authorized, through the commis-
sioners of the sinking fund, to issue and sell certificates of indebted-
ness in the names and on behalf of their institutions, respectively, to
raise funds for dormitory construction purposes, subject to the con-
ditions and limitations hereinafter set out.

2. The amount of certificates of indebtedness which may be
issued on behalf of each of the institutions herein named shall be as
agreed upon by the governing board of each institution and the State
’ board of education; but the aggregate amount of certificates issued on
behalf of all the institutions herein named shall not exceed the sum of
one million dollars.

The attention of the State board of education is hereby directed
to the message of the governor of Virginia to the general assembly
dated January 13, 1926, in so far as such message deals with the needs
of the several institutions mentioned in this act.

3. The certificates of indebtedness issued under the provisions of
this act shall be signed on behalf of the institutions in the names of
which they are issued, by the presiding officers of their governing
hoards, respectively, and shall be countersigned by the second auditor,
who shall keep an account thereof in his office. The certificates of
indebtedness issued under this act are the certificates of the institu-
tions issuing them, respectively, and not the certificates of the State.

4. The said certificates of indebtedness shall bear interest payable
semi-annually January first and July first of each year, at a rate to be
fixed by the commissioners of the sinking fund with the approval of
the State board of education, but not exceeding four per centum per
annum. The said certificates shall be issued in such denominations
and shall mature at such time or times, not exceeding twenty-two
years from their date, as may be prescribed by the State board of
education, and shall be in such form, not inconsistent with the pro-
visions of this act, as may be approved by such board. The governing
board of each such institution on behalf of which such certificates are
issued may secure the payment of the interest thereon and the prin-
cipal thereof at maturity by giving a deed of trust upon the property
of such institution.

5. The commissioners of the sinking fund with the approval of
the State board of education, shall from time to time, sell the said cer-
tificates of indebtedness for cash at such prices, not less than par, as
may be approved by them.

6. The sums of money received from the sale of the certificates
of indebtedness issued and sold under the provisions of this act shall
be paid into the State treasury by the commissioners of the sinking
fund to the credit of the institutions on behalf of which such certifi-
cates are issued and sold, respectively, and such amounts so paid in to
the credit of such institutions, respectively, are hereby appropriated
to and may be expended by their governing boards, respectively, for
the construction of dormitories for the use of students of the respec-
tive institutions, and for no other purposes whatsoever. But all pay-
ments out of the treasury shall be made upon the order of the second
auditor. All plans, bids and costs of the buildings shall be acted upon
by the governing board of the respective institutions and the State
board of education. The idea of the utility of the said buildings shall
be paramount and adhered to in their design for the purposes intended,
and the consumption of space for any non-essential purpose shall be
avoided. In constructing a dormitory at the State Teachers College
at Radford, the general design of the present dormitory shall be ad-
hered to and it shall also harmonize with the original building plan.

7. The State board of education is hereby authorized, in its dis-
cretion, to sell any bonds of the State held as a part of the literary fund
and to invest the proceeds derived from the sale of such bonds in the
certificates of indebtedness issued under the provisions of this act,
such certificates so purchased to become a part of the literary fund.

8. In order to provide for the payment of the interest on the
certificates issued under this act and the creation of a sinking fund to
retire them at maturity, the governing boards of each of the institu-
tions on behalf of which such certificates are issued, shall cause to be
paid quarterly into the State treasury to the credit of special accounts
to be opened on the books of the second auditor for each of such insti-
tutions, all net rents and fees received from students or other persons
for the use of the dormitories constructed with funds derived from the
issuance of such certificates of indebtedness. The rents charged for
the use of such dormitories shall not be less than six dollars per month
for each student occupying a room therein, and on the basis of not less
than two students to a room, and the same price for each student in
excess of two to a room who may occupy any of the rooms.

The term ‘‘net rents and fees,”’ as herein used, shall be construed
to mean the gross rents and fees received for the use of such dormi-
tories, less the cost of operation and maintenance of such dormitories,
including insurance premiums, which cost of operation and main-
tenance including insurance premiums shall not exceed twenty-four
hundred dollars each per annum, on the basis of a dormitory costing
one hundred and fifty thousand dollars, nor shall such cost exceed
twenty-eight hundred dollars in the case of a dormitory costing two
hundred thousand dollars, and a proportionate cost for less sums ex-
pended in building construction. It shall be the duty of the State
accountant semi-annually to audit the accounts of the rents and fees
received and disbursed by each institution, and if it shall come to his
knowledge that such accounts are not being kept properly, or that any
of such rents and fees are being devoted to purposes not authorized
by this act, he shall report the facts to the governor.

9. If at any time any default should be made by any institution
in the payment into the State treasury of the moneys hereby required
so to be paid in for interest and sinking fund requirements, the com-
missioners of the sinking fund shall direct the second auditor to make
requisition on the auditor of public accounts who shall draw his
warrant upon the then current annual State appropriation of such
institution for the amount estimated to be due. Such warrant shall
thereupon be honored and such amount disposed of in the same
manner as if it had been paid into the State treasury by such institu-
tion as required by section eight of this act.

10. The moneys so received into the State treasury to be placed
to the credit of the special accounts mentioned in section eight of this
act shall be used by the commissioners of the sinking fund, first to pay
the interest on such certificates of indebtedness issued on behalf of
such institutions, respectively, when and as it becomes due and pay-
able, and the balance shall constitute a sinking fund in each instance
to retire the certificates of indebtedness at maturity. Each of such
sinking funds may be used by the commissioners of the sinking fund
to purchase and retire certificates of indebtedness for which such
sinking funds are provided, in which case such certificates so pur-
chased shall be cancelled and not re-issued. To the extent that each
of such sinking funds is not used to purchase such certificates, as afore-
said, the moneys belonging to it shall be invested by the commissioners
of the sinking fund in safe securities at the highest rate of interest ob-
tainable, and all interest received on such investments shall become
a part of the sinking fund in each case. When and as such certificates
of indebtedness mature, they shall be paid by the commissioners of the
sinking fund out of the sinking funds respectively provided for that
purpose. All moneys disbursed by the commissioners of the sinking
fund under this act shall be paid out by the State treasurer on warrants
of the second auditor issued on the order of such commissioners.

11. All buildings constructed with funds derived from such cer-
tificates of indebtedness shall be practically fireproof. They shall be
kept adequately insured by the respective governing boards of such
institutions.

12. The moneys made available by this act to the institutions
named in this act shall be used only for the construction of dormi-
tories. All such dormitories shall be furnished by donations, gifts,
or otherwise and shall be so kept furnished until the certificates
issued have been retired.

13. No purchasers of any certificate of indebtedness issued under
this act shall be required to see to the application of the purchase
money.

Chap. 489.—An ACT to amend and re-enact sections 3, 5, 7, 9 and 16 of an act
entitled an act to define, regulate, and license real estate brokers and real
estate salesmen; to create a State real estate commission; and to provide a
penalty for a violation of the provisions hereof, approved March Zl. p24.

J

Approved March 25, 1926.

1. Be it enacted by the general assembly of Virginia, That sec-
tions three, five, seven, nine and sixteen of an act entitled an act to
define, regulate, and license real estate brokers and real estate sales-
men; to create a State real estate commission; and to provide a penalty
for a violation of the provisions hereof, approved March twenty-first,
nineteen hundred and twenty-four be amended and re-enacted so as
to read as follows: :

Section 3. Creation of commission; details of same.—There is
hereby created the (Virginia) real estate commission. The governor
shall appoint three persons, whose vocation for a period of at least five
years prior to the date of their appointment, shall have been that of a
real estate broker or a real estate salesman; one member shall be ap-
pointed for a term of two years; one member shall be appointed for a
term of four years; one member for a term of six years; and until their
successors are appointed and qualify, thereafter the term of the mem-
bers of said commission shall be for six years and until their successors
are appointed and qualify. Members to fill vacancies shall be ap-
pointed for the unexpired term. The commission immediately upon
the qualification of the member appointed in each year shall organize
by selecting from its members a chairman, and may do all things
necessary and convenient for carrying into effect the provisions of this
act and may from time to time promulgate necessary rules and
regulations.

Each member of the commission shall receive as full compensation
for each day actually spent on the work of said commission the sum
of ten ($10.00) dollars per day and his actual and necessary expenses
incurred in the performance of duties pertaining to this office.

The commission shall employ, and at its pleasure discharge, a
secretary and such clerks and assistants as shall be deemed necessary
to discharge the duties imposed by the provisions of this act, and shall
determine their duties and fix their compensation, subject to the
general laws of the State. The commission shall obtain such office
space, furniture, stationery, fuel, light, and other proper conveniences
as shall be reasonably necessary for carrying out the provisions of this
act after first deducting the actual expense of operation of the com-
mission.

The commission shall adopt a seal with such design as the com-
nussion may prescribe engraved thereon, by which it shall authenti-
cate its proceedings. Copies of all records and papers in the office of
the commission, duly certified and authenticated bv the seal of said
commission shall be received in evidence in all courts equally and with
like effect as the original. All records kept in the office of the com-
mission under authority of this act shall be open to public inspection
under such rules and regulations as shall be prescribed by the com-
mission.

All fees and charges collected by the commission under the pro-
visions of this act shall be paid into the general fund of the State
treasury; it being expressly provided, however, that the total expense
for every purpose incurred shall not exceed the total fees and charges
collected and paid into the commission.

Section 5. Application for license—Every applicant for a real
estate broker’s license shall apply therefor in writing upon blanks pre-
pared or furnished by the real estate commission. Such application
shall be accompanied by the recommendation of at least two citizens,
real estate owners, not related to the applicant, who have owned real
estate for a period of one year or more, in the county or city in which
said applicant resides, or has his place of business, which recommenda-
tion shall certify that the applicant bears a good reputation for
honesty, truthfulness, fair dealing and competency, and recommend-
ing that a license be granted to the applicant, but no recommendation
shall be required for the renewal of a license after being once issued.
Every applicant for a broker’s license shall state the name of the per-
son, firm, partnership, co-partnership, association or corporation with
which he will be associated in the business of real estate, and the
location of the place, or places, for which said license is desired, and
set forth the period of time, if any, which said applicant has been en-
gaged in the real estate business.

Every applicant for license shall furnish a sworn statement setting
forth his present address, both of business and residence, a complete
list of all former places and firms where he may have resided or been
engaged in business for a period of sixty days or more, during the last
five years, accounting for such entire period, and the length of such
residence, together with the name and address of at least one real
estate owner in each of said counties or cities where he may have
resided or have been engaged in business.

Every applicant for a salesman’s license shall, in addition to the
requirements of this section, also set forth the period of time, if any,
during which he has been engaged in the real estate business, stating
the name and address of his last employer, and the name and the place
of business of the person, firm, partnership, co-partnership, association
or corporation then employing him, or into whose service he is about
to enter. The application shall be accompanied by a written state-
ment by the broker in whose service he is about to enter, stating that
in his opinion the applicant is honest, truthful, and of good reputation,
and recommending that the license be granted to the applicant.

Every application for a license, under the provisions of this act
shall be accompanied by the license fee herein prescribed. In the
event that the commission does not issue the license, the fee shall be
returned to the applicant.

The commission may require such other proof as shall be deemed
desirable with due regard to the paramount interests of the public as
to the honesty, truthfulness, integrity, and competency of the appli-
cant. The commission is expressly vested with the power and auth-
ority to make and enforce any and all such reasonable rules and regu-
lations connected with the application: for any license as shall be
deemed necessary to administer and enforce the provisions of this act.

Section 7. Details relating to license——The commission shall
issue to each licensee a license in such form and size as shall be pre-
scribed by the commission. This license shall show the name and
address of the licensee and in case of a real estate salesman’s license,
shall show the name of the real estate broker by whom he is employed.
Each license shall have imprinted thereon the seal of the commission
and in addition to the foregoing shall contain such matters as shall be
prescribed by the commission. The license of each real estate sales-
man shall be delivered or mailed to the real estate broker by whom
such real estate salesman is ‘employed and shall be kept in the custody
and control of such broker. It shall be the duty of each real estate
broker to conspicuously display his license in his place of business.

The commission shall prepare and deliver to each licensee a pocket
card, which card, among other things, shall contain an imprint of the
seal of the commission and shall certify that the person whose name
appears thereon is a licensed real estate broker or real estate salesman,
as the case may be, and if it is a real estate salesman’s card it shall also
contain the name and address of his employer, the matter to be
printed on such pocket card, except as above set forth, shall be pre-
scribed by the commission.

The original fee for each real estate broker’s license shall be ten
($10.00) dollars, and the annual renewal fee shall be ten ($10.00)
dollars. The original fee for each real estate salesman’s license shall
be five ($5.00) dollars, and the annual renewal fee shall be five ($5.00)
dollars, provided, however, that in rural sections of the State the
annual renewal fee for each broker’s license shall be seven dollars and
the annual renewal fee for each real estate salesman’s license shall be
three dollars. .

Every license shall expire on the thirty-first day of December of
each year. The commission shall issue a new license for €ach ensuing
year, in the absence of any reason or condition which might warrant
the refusal of the granting of a license, upon receipt of the written
request of the applicant and the annual fee therefor, as herein re-
quired. The revocation of a broker’s license shall automatically sus-
pend every real estate salesman’s license granted to any person by
virtue of his employment by the broker whose license has been re-
voked, pending a change of employer and the issuance of a new license.
Such new license shall be issued without charge, if granted during the
same year in which original license was granted.

Every real estate broker shall maintain a place of business in this

tate. If the real estate broker maintains more than one place of
business within the State, a duplicate license shall be issued to such
broker for each branch office maintained. Provided, that if such
broker be a co-partnership, association or corporation, a duplicate
shall be issued to the members or officers thereof, a single fee of one
($1.00) dollar in each case shall be paid for each duplicate license.
Notice in writing shall be given to the commission by each licensee
of any change of principal business location, whereupon the com-
mission shall issue a new license for the unexpired period without
charge. The change of business location without notification to the
commission shall automatically cancel the license theretofore issued.
- When any real estate salesman shall be discharged or shall term-
inate his employment with the real estate broker by whom he is em-
ployed, it shall be the duty of such real estate broker to immediately
deliver or mail by registered mail to the commission such real estate
salesman’s license. The real estate broker shall at the time of mailing
such real estate salesman’s license to the commission, address a com-
munication to the last known residence address of such real estate
salesman, which communication shall advise such real estate salesman
that his license has been delivered or mailed to the commission. . A
copy of such communication to the real estate salesman shall accom-
pany the license when mailed or delivered to the commission. It shall
be unlawful for any real estate salesman to perform any of the acts
contemplated by this act, either directly or indirectly, under authority
of said license from and after the date of receipt of the said license from
said broker by the commission. Provided, that another license shall
not be issued to such real estate salesman until he shall return his
former pocket card to the commission or shall satisfactorily account
to it for the same. Provided, further, that not more than one license
shall be issued to any real estate salesman for the same period of time.
Section 9. Provision for hearing before application is refused or
license suspended or revoked.—The commission shall, before denying
an application for license, or before suspending or revoking any
license, set the matter down for a hearing, and at least ten days prior
to the date set for the hearing, it shall notify in writing the applicant,
or licensee, of any charges made, and shall afford said applicant, or
licensee, an opportunity to be heard in person or by counsel in refer-
ence thereto. Such written notice may be served by delivery of same
personally to the applicant, or licensee, or by mailing same by regis-
tered mail to the last known business addess of such applicant, or
licensse; 1f said applicant or licensee be a salesman, the commission
shall also notify the broker employing him, or in whose employ he is
about to enter, by mailing notice by registered mail to the broker's
last known business address. The hearing on such charges shall be
at such time and place within the city or county in which the licensee
or party accused resides as the commission shall prescribe. The com-
mission shall have the power to subpoena and bring before it any
person in this State, or take testimony of any such person by deposition
with the same fees and mileage in the same manner as prescribed by
law in judicial procedure in courts of this State in civil cases. Any
party to any hearing before the commission shall have the right to the
attendance of witnesses in his behalf at such hearing, upon making
request therefor to the commission and designating the person or
persons sought to be subpoenaed. If the commission shall determine
that any applicant is not qualified to receive a license, a license shall
not be granted to said applicant, and if the commission shall determine
that any licensee is guilty of a violation of any of the provisions of
this act, his or its license shall be suspended or revoked. Any person,
firm or corporation aggrieved by any such decision of the commission
shall have the right of appeal to the circuit or corporation court of the
county or corporation in which said aggrieved party resides by filing
with the commission notice in writing of such appeal within thirty
days from its finding. Upon the trial of any such appeal by the
circuit or corporation court the party appealing shall have the right
of trial by a jury as to any question of fact. All legal evidence pro-
duced shall be heard, whether the same was produced or not before
the commission from whose decision the appeal is taken.