CHAPTER 218

AN ACT to amend and reenact § 28-19 of the Code of 1950,
relating to issuance of obligations by certain State educa-
tional institutions, so as to designate the Treasury Board
as agent thereunder.

[ H 255 ]

Approved March 15, 1950

Be it enacted by the General Assembly of Virginia:

1. That § 23-19 of the Code of 1950 be amended and reenacted,
as follows:

§ 23-19. Amount of bonds; resolutions for issuance; pay-
ment or purchase by institution; no personal liability. (a)
Every institution shall have power and is hereby authorized
and empowered from time to time to * execute its bonds in such
aggregate principal amount as may be determined upon by its
board and approved by the Governor. All such bonds shall be
issued and sold through the Treasury Board which is hereby des-
ignated the issuing, sales, and paying agent of such institutions
under this chapter. Such aggregate principal amount may
include without limitation any engineering or inspection costs
or legal or accounting expenses incurred by the institution in
connection with the project for the erection of which such bonds
are issued, and the cost of issuance of the bonds, including print-
ing, engraving, advertising, legal and other similar expenses.

(b) Such bonds shall be authorized by resolution of the
board, approved by the Governor, and may be issued in one or
more series, shall bear such date or dates, mature at such time
or times, bear interest at such rate or rates not exceeding three
per centum per annum, payable at such time or times, be in
such denominations, be in such form, either coupon or regis-
tered, carry such registration privileges, be executed in such
manner, be payable in such medium of payment, at such place or
places, be subject to such terms of redemption, with or without
premium, as such resolution or resolutions may provide. Such
bonds may be sold at public or private sale for such price or
prices as the board with the approval of the Governor shall de-
termine, provided that the interest cost to maturity of the money
received for any issue of such bonds shall not exceed three per
centum per annum.

(c) Such bonds may be issued for the corporate purpose or
purposes of the institution specified by § 23-17 hereof or to carry
out the powers conferred on the institution by the preceding
section hereof.

(d) Any resolution or resolutions authorizing such bonds
may contain a provision, which shall be a part of the contract
with the holders of such bonds, as to
(1) Pledging any or all revenues of the institution derived
directly or indirectly from the project for the erection of which
the bonds are issued to secure the payment of such bonds, and
the determination of the revenues and receipts to be derived
directly or indirectly from the project for the erection of which
the bonds are to be issued and the cost or expenses of the opera-
tion and maintenance thereof ;

(2) The operation and maintenance of the project;

(3) The amount or amounts to be charged and collected as
fees, rents or charges for or in connection with the use, occu-
pations, products and/or services of the project or any services
rendered therein, and the amount to be raised in each year there-
by in revenues of any kind and the use and disposition of any
or all such revenues;

(4) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof ;

(5) Limitations on the right of the institution to restrict
and regulate the use, occupation, products and/or services of the
project, or the services rendered therein;

(6) Limitations on the purpose to which the proceeds of
sale of any issue of bonds then or thereafter to be issued may
be applied;

(7) Limitations on the issuance of additional bonds;

(8) The procedure, if any, by which the terms of any con-
tract with holders of such bonds may be amended or abrogated,
the amount of bonds the holders of which must consent thereto,
and the manner in which such consent may be given; and

(9) Any other matter required by the United States of
America or any Federal agency as a condition precedent to or
a requirement in connection with the obtaining of a direct grant
or grants of money for or in aid of the erection of any project,
or to defray or partially to defray the cost of labor and material
employed in the erection of any project, or to obtain a loan or
loans of money for or in aid of the erection of any project from
the United States of America or any Federal agency, provided
such other matter is approved by the Governor.

(e) The power and obligation of an institution to pay any
bonds issued under this chapter shall be limited. Such bonds
shall be payable only from the revenues and receipts derived
directly or indirectly from the project for the erection of which
the bonds are issued. Such bonds shall in no event constitute an
indebtedness of the institution, excepting to the extent of the
collection of such revenues and receipts and such institution shall
not be liable to pay such bonds or interest thereon from any
other funds; and no contract entered into by the institution
pursuant to subdivision (b) of this section shall be construed to
require the costs or expenses of operation and maintenance of
the project for the erection of which the bonds are issued to be
paid out of any funds other than the revenues and receipts de-
rived directly or indirectly from such project. The revenues
and receipts to be deemed as derived directly or indirectly from
the project for the erection of which the bonds are to be issued
and the costs and expenses of the operation and maintenance
thereof shall be determined by resolution of the board, approved
by the Governor. In making such determination the board must
exclude all funds received or receivable from the State. Any
provision of the general laws to the contrary notwithstanding,
any bonds issued pursuant to the authority of this chapter shall
be fully negotiable within the meaning and for all the purposes
of chapter 10 of Title 6.

(f) Neither the Governor nor the members of the board nor
any person executing such bonds shall be liable personally on
the bonds or be subject to any personal liability or accountability
by reason of the issuance thereof.

(g) The institution shall have power out of any funds
available therefor to purchase any bonds issued by it at a price
not more than the principal amount thereof and the accrued in-
terest. All bonds so purchased shall be cancelled unless pur-
chased as an endowment fund investment. This paragraph shall
not apply to the redemption of bonds.