Chap. 440.—An ACT to amend and re-enact an act entitled ‘‘an act to authorize
the governing boards of the University of Virginia, the Virginia Polytechnic
Institute, the Virginia Normal and Industrial Institute and the State Teachers
Colleges at Farmville and Harrisonburg to issue and sell, through the com-
missioners of the sinking fund, certificates of indebtedness in the name and
on behalf of their institutions, respectively, to raise funds for dormitory
construction purposes and for the construction of a power and heating plant at
the Virginia Polytechnic Institute, 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; to authorize and require the State Board of
Education to sell any State bonds held as a part of the literary fund, when
so directed by the Governor, and to invest the proceeds: derived from the sale
of such bonds in the certificates of indebtedness issued under the provisions
of this act and to authorize and require the State Board of Education, when
so directed by the Governor, to invest any uninvested portion of the literary
fund in the certificates of indebtedness issued under the provisions of this act:

' which follows the plan of the Noell Act, Chapter 489, Acts of 1926, adopted
in the budget,” approved February 28, 1928, so as to authorize the Medical
College of Virginia to issue and sel! under the provisions of the said act
certificates of indebtedness in an amount not to exceed $250,000 to raise funds
for the payment of certain outstanding indebtedness. {S B 230]

Approved March 30, 1936

1. Be it enacted by the General Assembly of Virginia, That an act
entitled “An act to authorize the governing boards of the University
of Virginia, the Virginia Polytechnic Institute, the Virginia Normal and
Industrial Institute and the State teachers colleges at Farmville and
Harrisonburg to issue and sell, through the commissioners of the
sinking fund, certificates of indebtedness in the name and on behalf of
their institutions, respectively, to raise funds for dormitory construction
purposes and for the construction of a power and heating plant at the
Virginia Polytechnic Institute, 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; to authorize and require the
State Board of Education to sell any State bonds held as a part of the
literary fund, when so directed by the Governor, and to invest the
proceeds derived from the sale of such bonds in the certificates of
indebtedness issued under the provisions of this act and to authorize
and require the State Board of Education, when so directed by the
Governor, to invest any uninvested portion of the literary fund in the
certificates of indebtedness issued under the provisions of this act;
which follows the plan of the Noell act, chapter four hundred and
eighty-nine, Acts of nineteen hundred and twenty-six, adopted in the
budget,” approved February twenty-eighth, nineteen hundred and
twenty-eight, be amended and re-enacted so as to read as follows:

Section 1. The governing boards of the University of Virginia at
Charlottesville, the Virginia Polytechnic Institute at Blacksburg, the
Virginia Normal and Industrial Institute at Petersburg, the State
Teachers College at Farmville, and the State Teachers College at
Harrisonburg, are hereby severally authorized, through the commis-
sioners of the sinking fund, to issue and sell certificates of indebtedness
in the names and on behalf of the institutions, respectively, to raise
funds for the construction and equipment of dormitories, subject to
the conditions and limitations hereinafter set out; and the governing
board of the Virginia Polytechnic Institute at Blacksburg is hereby
authorized, through the commissioners of the sinking fund, to issue
and sell certificates of indebtedness in the name and on behalf of that
institution to raise funds for the construction, equipment and com-
pletion of a power and heating plant, subject to the conditions and
limitations hereinafter set out, and the governing board of the Medical
College of Virginia at Richmond is hereby authorized, through the
commissioners of the sinking fund, to issue and sell certificates of
indebtedneess in the name and on behalf of that institution to raise
funds for the payment of its outstanding indebtedness now due or
to become due, subject to the conditions and limitations hereinafter set
out. All buildings constructed with funds derived from such. cer-
tificates of indebtedneses shall be as nearly fireproof as is possible
and, except in the case of the two hundred and fifty thousand dollars
($250,000.00) to be borrowed by the Virginia Polytechnic Institute,
and the two hundred and fifty thousand dollars ($250,000.00) to be
borrowed by the Medical College of Virginia, all the money made
available by this act to the institutions named in this act shall be used
only for the construction and equipment of dormitories.

Section 2. The amount of certificates of indebtedness, which may
be issued on behalf of each of the institutions herein named, shall be
as follows: .

For the construction and equipment of dormitories: The University
of Virginia at Charlottesville an amount not exceeding five hundred
thousand dollars ($500,000.00) ;

The Virginia Polytechnic Institute at Blacksburg an amount not
exceeding one hundred and fifty thousand dollars ($150,000.00) ;

The Virginia Normal and Industrial Institute at Petersburg an
amount not exceeding one hundred and thirty-three thousand, three
hundred and thirty-five dollars ($133,335.00) ;

The State Teachers College at Farmville an amount not exceeding
one hundred and fifty thousand dollars ($150,000.00) ; .

The State Teachers College at Harrisonburg an amount not ex-
ceeding one hundred thousand dollars ($100,000.00) ;

For the construction, equipment and completion of a necessary
power and heating plant: The Virginia Polytechnic Institute at Blacks-
burg an amount not exceeding two hundred and fifty thousand dollars
($250,000.00).

For the payment of its outstanding indebtedness now due or to
become due: The Medical College of Virginia at Richmond an amount
not exceeding two hundred and fifty thousand dollars ($250,000.00).

Section 3. The certificates of indebtedness issued under the provi-
sions 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 gov-
erning boards, respectively, and shall be countersigned by the treasurer
who shall keep an account thereof in his office. The certificates of
indebtedness issued under this act are the certificates of institutions
issuing them, respectively, and not the certificates of the State.

Section 4. The said certificates of indebtedness shall bear interest,
payable semi-annually, January first and July first of each year, at
the rate of four per centum per annum. The said certificates shall be
“issued in such denominations and shall mature at such time or times
not exceeding thirty-three years from their date as may be prescribed
by the Governor, except that in the case of certificates issued by the
Medical College of Virginia ten thousand dollars ($10,000.00) of said
certificates shall mature annually on the first day of January, com-
mencing with the first day of January of the year following the date of
their issuance and shall be callable in whole or in part at face and
accrued interest on any interest date.

Section 5. The loans made under this act, including interest thereon,
shall constitute a specific lien on all the grounds, buildings and addi-
tions thereto of the several institutions obtaining said loans, and all
such buildings shall be kept fully and adequately insured for the
benefit of the literary fund, or the other owner or owners of such
certificates, and the policy or policies of insurance shall be kept on
file in the office of the Comptroller.

Section 6. The State Board of Education is hereby authorized and
required to sell any bonds of the State held as a part of the literary
fund, when and as directed by the Governor to do so, and is required,
when and as directed by the Governor, to invest the proceeds derived
from the sale of such bonds in the certificates of indebtedness issued
under the provisions of this act. The State Board of Education is
further authorized and required, when and as directed to do so by
the Governor, to invest any uninvested portion of the literary fund in
the certificates of indebtedness issued under the provisions of this act,
and all such certificates purchased with funds belonging to the literary
fund shall become the property of and a part of that fund. In the
event that sufficient funds are not available for the purchase of all such
certificates with money belonging to the literary fund, or the proceeds
arising from the sale of the bonds hereinabove referred to, the com-
missioners of the sinking fund are directed, when and as required by
the Governor to do so, to sell the said certificates of indebtedness for
cash at such prices, not less than par, as may be approved by the
Governor and said commissioners.

Section 7. The sums of money loaned from the literary fund, as
above provided or received from the sale of certificates of indebted-
ness issued and sold under the provisions of this act, shall be paid into
the State treasury to the credit of the institutions on behalf of which
such certificates are issued, and such amounts so paid into the treasury
to the credit of such institutions, respectively, are hereby appropriated
to and may be expended by the governing boards, respectively, for the
construction and completion of dormitories for the use of students of
the respective institutions and for no other purpose whatsoever, except
in the case of the Virginia Polytechnic Institute at Blacksburg the sum
of two hundred and fifty thousand dollars ($250,000.00) obtained in
the manner authorized by this act shall be expended for the construc-
tion and equipment of a power and heating plant, and except in the
case of the Medical College of Virginia at Richmond the sum of two
hundred and fifty thousand dollars ($250,000.00) obtained in the
manner authorized by this act shall be expended for the payment of
its outstanding indebtedness now due or to become due. All payments.
out of the treasury shall be made upon order of the Comptroller.’
The plans, bids and costs of the buildings shall be acted upon and
approved by the governing boards of the respective institutions and the
State Board of Education. Such institutions shall charge and collect
such fees and rents for the use of the dormitories, and in the case of
the Virginia Polytechnic Institute for the sale of electric current from
the power and heating plant, constructed with funds derived from the
issuance of such certificates of indebtedness, as shall be sufficient to
provide for the payment of the interest and principal of such cer-
tificates and the creation of a sinking fund to retire them at maturity,
and the Comptroller shall set aside quarterly to the credit of special
accounts to be opened on the books of the Comptroller for each of
such institutions, so much of the 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 indebted-
ness, and paid into the State treasury, as may be necessary for said
purpose. The rents charged for the use of such dormitories shall not
be less than six dollars ($6.00) 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 applies to 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 dormitories,
less the cost of operation and maintenance of such dormitories, in-
cluding the insurance premium. In the case of the power and heating
plant to be erected by the Virginia Polytechnic Institute, so much of
the income arising from the sale of electric current and paid into the
State treasury, as may be necessary therefor, shall be set aside quarterly
to the credit of the said special accounts to be opened on the books
of the Comptroller as aforesaid to be used for the payment of the
interest and principal on the certificates issued by said institution under
this act and the creation of a sinking fund to retire the principal at
maturity. It shall be the duty of the Auditor of Public Accounts semi-
annually to audit the accounts of the rents and fees received and dis-
bursed by each institution, and, if it shall come to his knowledge that
said accounts are not being kept properly, or that any of said rents
and fees are being devoted to purposes not authorized by this act, he
shall report the fact to the Governor. In the case of the Medical Col-
lege of Virginia the provisions of this act in respect to a sinking fund
shall not apply. In the event that the rents derived from said dormi-
tories, or the proceeds arising from the sale of the current generated
at the power and heating plant of the Virginia Polytechnic Institute,
are not sufficient to pay off the indebtedness of said institutions, or
the principal and interest of the certificates issued by the Medical
College of Virginia are not paid, when and as required by this act,
then the amount of such deficiency shall be set aside by the Comp-
troller out of the other revenue, paid into the State treasury by such
institutions on or before the due date of any installment of principal
or interest on such certificates.

Section 8. If at any time default shall be made by any institution
in the payment into the State treasury of the moneys hereby required
so to be paid in for interest, principal and sinking fund requirements,
the commissioners of the sinking fund shall notify the Comptroller
of this fact, and he is hereby authorized and directed to draw his
warrant upon the then current annual State appropriation to such in-
stitution for the amount which is then due on account of interest and
principal. 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 institution as required by section seven of this act.

Section 9. The moneys so received into the State treasury 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 payable, and
the balance shall be used to pay the principal thereof. All moneys
disbursed by the commissioners of the sinking fund shall be paid out
of the State treasury on warrants of the Comptroller issued on the
order of such commissioners. .

The purchasers of any of the certificates of indebtedness issued
under this act shall not be required to see to the application of the
purchase money.