CHAPTER 476

An Act to amend and reenact § 22-112 of the Code of Virginia, relating
to the rate of interest on loans from the Literary Fund.
[H 883]

Approved April 3, 1954
Be it enacted by the General Assembly of Virginia:

1. That § 22-112 of the Code of Virginia be amended and reenacted
as follows:

§ 22-112. All loans made on or before January first, nineteen hun-
dred forty-seven, shall bear interest at the rate of two per centum a
year, payable annually. After January first, nineteen hundred forty-seven,
when loans have been approved by the State Board from time to time
in such amounts that no sufficient balance shall have been left in the
Literary Fund from which to make additional loans, then the State
Board is authorized in its discretion to fix the rate of interest as low as
possible, but not less than two per centum and not to exceed four per
centum a year on such additional loans which may be made by selling
the bonds of the cities and counties for which such loans are approved,
for investment of the reserves of the Virginia Retirement System in such
amount as may be approved by the Virginia Retirement Board in accord-
ance with the provisions of § 51-76, in order to provide additional funds
to make loans to the school boards of the several counties, cities and
towns for the purposes for which such loans are legally authorized to be
made. Loans from the Literary Fund already approved and those
approved prior to the date on which it first becomes necessary to sell the
bonds of the counties, cities and towns to the Virginia Retirement Board
for investment of the Virginia Retirement Fund reserve shall bear inter-
est at the rate of two per centum a year payable annually. The State
Board is authorized in its discretion to fix the interest rate on all loans
made after * July first, nineteen hundred * fifty-four, at not less than
two per centum * per annum and not to exceed four per centum per
annum, payable annually. The principal shall be payable in annual install-
ments from five to thirty years; provided that the time of payment may
be extended in the discretion of the State Board, and shall be evidenced
by bonds or notes payable to the Commonwealth of Virginia, for the
benefit of the Literary Fund, executed or signed by the chairman of the
county, city or town school board and attested by the clerk thereof. Pay-
ments of interest and principal shall be made to the State Treasurer and
evidence of debt taken for such loans shall be deposited with the State
Treasurer and kept by him. But if the State Board has assigned any
of such bonds, notes or other evidences of debt to the Board of Trustees
of the Virginia Retirement System under the provisions of § 51-76, and
the same are held by the Board of Trustees of the Virginia Retirement
System, the time of payment thereof may not be extended by the State
Board but may be extended by the Board of Trustees of the Virginia
Retirement System, in its discretion.