Chap. 378.—An ACT to authorize the Medical College of Virginia to issue and
sell certificates of indebtedness to meet certain existing indebtedness, to pre-
scribe how such certificates shall be secured, issued, sold, or otherwise dis-
posed of, and to provide a sinking fund to retire such certificates at maturity,

Approved March 31, 1944

Be it enacted by the General Assembly of Virginia:

1. Section 1. The board of visitors of the Medical College of Vir-
ginia, at Richmond, or the executive committee of the board of visitors,
is hereby authorized, through the commissioners of the sinking fund, to
issue and sell certificates of indebtedness in the name and on behalf of
the institution, to raise funds for the payment of certain indebtedness
to banks and banking institutions, subject to the conditions and limt-
tations hereinafter set out. The amount of certificates of indebtedness
which may be issued on behalf of the institution shall not exceed eight
hundred seventy thousand dollars ($870,000.00). The certificates of in-
debtedness issued under the provisions of this act shall be signed on be-
half of the institution by the presiding officer of the board of visitors
and shall be countersigned by the State Treasurer, who shall keep an
account thereof in his office. The certificates of indebtedness issued under
this act are the certificates of the institution issuing them and not the
certificates of the State. Such certificates of indebtedness shall bear in-
terest, payable semi-annually on January first and July first of each year,
at a rate to be fixed by the executive committee of the board of visitors
and the commissioners of the sinking fund. The 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. The certificates so issued, including interest thereon, shall
constitute a specific lien on the grounds, buildings and equipment in the
city of Richmond used by the Medical College of Virginia for hospital
purposes except property and equipment used in the operation of the
Dooley and St. Philip Hospitals. All such buildings and equipment shall
be kept fully and adequately insured for the benefit of the 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 2. The State Board of Education is hereby authorized in
its discretion, subject to the approval of the Governor, to sell any bonds
of the State held as a part of the literary fund, and is authorized in its
discretion, subject to the approval of 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 authorized in its discretion, subject to the approval of 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 cer-
tificates purchased with funds belonging to the literary fund shall be
come the property of and a part of that fund. In the event that sufficien!
funds are not available for the purchase of such certificates with money
belonging to the literary fund, or the proceeds arising from the sale
of the bonds hereinbefore referred to, the commissioners of the sinking
fund are directed, when and as required by the Governor to do so. to sei
such certificates of indebtedness for cash at such prices. not less thar
par, as may be approved by the Governor and the sinking fund com
missioners.

Section 3. All sums of money loaned from the literary fund. a:
provided herein, or received from the sale of certificates of indebtedness
issued and sold under the provisions of this act, shall be paid into the
State treasury to the credit of the Medical College of Virginia, and such
amounts so paid into the treasury to the credit of the College are herebs
appropriated to and may be used by the board of visitors for the payment
of outstanding bank indebtedness of the institution, and for no other
purpose whatsoever. All payments out of the treasury shall be made upon
order of the Comptroller.

Section 4. In order to provide for the payment of the principal and
the interest on the certificates issued under this act and the creation 0
a sinking fund to retire the certificates at maturity, the Comptroller shal!
set aside quarterly to the credit of a special account to be opened on hi:
books for such institution, so much of the net fees, charges and other
revenue received from the operation of the Medical College of Virginia
Hospital as may be necessary for the purpose. The term “‘net fees.
charges and other revenue” as herein used shall be construed to mean
the gross fees, charges and other revenue received from the operation of
the hospital, less the cost of such operation and maintenance, including
premiums on insurance.

Section 5. In the event that the fees, charges and other revenue
derived from the operation of the hospital are not sufficient to pay the
principal of such certificates or the interest thereon as it matures, then
the amount of such deficiency shall be set aside by the Comptroller out
of other revenues paid into the State treasury by the institution on or
before the due date of any such installment of principal or interest.

Section 6. If at any time default shall be made by the 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 warrants upon
the then annual State apropriation to the institution for the amount
which is then due on account of interest and principal. Such warrants
shall thereupon be honored and such amount disposed of in the same
manner as if it had been paid into the State treasury by the institution as
required by law. 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 the institution.
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 commissioner. The pur-
chasers of any of the certificates of indebtedness issued under the pro-
visions hereof shall not be required to see to the application of the pur-
chase money.