Chap. 42.—-An ACT to amend and re-enact Section 642, as heretofore amended,
of the Code of Virginia, relating to loans to school boards from the literary
fund, so as to authorize such loans not in excess of 85 per cent of the cost of
the property on account of which the loan is made. [H B 110]

Approved February 17, 1942

1. Be it enacted by the General Assembly of Virginia, That section
six hundred and forty-two of the Code of Virginia, as heretofore
amended, be amended and re-enacted, as follows:

Section 642. Restrictions upon making loans; retirement of pre-
vious loans.—The State Board of Education may, in its discretion, make
such loan, but no such loan shall exceed eighty-five per cent of the cost of
the school house, addition thereto, and site, on account of which such
loan is made, nor shall it exceed one hundred thousand dollars. No loan
shall be made to aid in the erection of a building or addition to cost less
than five hundred dollars. Whenever such loan is made for the purpose of
enlarging a schoolhouse, any part of the proceeds of such loan may, in the
discretion of the State Board, be used to retire any previous loan, or
loans, on such schoolhouse, although not matured at the time of such
additional loan. No loan shall be made in any case in which the payment
of the same with interest would, in the judgment of the State Board of
Education, entail too heavy a charge upon the revenues of the county or
city to which such loan is granted. Nor in the discretion of the State
Board of Education shall any loan from the literary fund be made to any
school board which is in default in the payment of any part of the prin-
cipal of any previous loan from the literary fund made to said board or
its predecessors in office, nor to any board which for the two years next
preceding said loan has been more than six months in default in the pay-
ment of interest due on any such loan. |