CHAPTER 633

An Act to amend the Code of Virginia by adding a section numbered 22-
107.8, authorizing the school boards of counties to contract to borrow
money from the Virginia Supplemental Retirement System, and succes-
sors thereto, for the purpose of school construction, without a vote of
the people on such borrowing, and to amend and reenact § 51-111.24
of the Code of Virginia which was enacted by the General Assembly of
1952 as § 51-29.16, authorizing the Board of Trustees of the Virgini
Supplemental Retirement System to invest trust funds of such System
an evidences of debt of the school boards of the several counties.

[S 220]
Approved April 7, 1954
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
22-107.3, and that § 51-111.24 of the Code of Virginia, which was enacted
by the General Assembly of 1952 as § 51-29.16, be amended and reenacted,
the new and amended sections being as follows:

§ 22-107.8. At such time as § 115-a of the Constitution of Virginia be
amended to permit the same, the school boards of the several counties are
authorized to borrow money belonging to the assets of the Virginia Supple-
mental Retirement System and the school board of any county desiring to
borrow a part of such funds shall (a) comply with all of the provisions of
Chapter 7 of Title 22 of the Code of Virginia, which chapter shall apply,
mutatis mutandis, to such loans, provided that after the application has
been approved by the State Board of Education, it shall then be submitted
to the Board of Trustees of the Virginia Supplemental Retirement System,
and (b) make application to the Board of Trustees of the Virginia Supple-
mental Retirement System for such loan, after the approval of the State
Board of Education has been obtained. Such Board of Trustees may require
such other conditions as a requisite to making such loans as are deemed
proper to safeguard the assets of such fund.

§ 51-111.24. (a) The Board shall be the trustee of the several funds
created by this chapter and of those resulting from the abolition of the
Virginia Retirement System, and shall have full power to invest and re-
invest such funds, subject to the limitation that no investment shall be made
except, upon the exercise of bona fide discretion, in securities which, at the
time of making the investment, are, by statute, permitted for the invest-
ment of reserves of domestic life insurance companies. Subject to such
limitation, the Board shall have full power to hold, purchase, sell, assign,
transfer or dispose of, any of the securities or investments in which any of
the funds created herein have been invested, as well as of the proceeds of
such investments and any moneys belonging to such funds. The Board
may also, in its discretion, invest such trust funds in bonds, notes and other
evidences of debt of the school boards of the several counties, cities and
towns of the State held in the Literary Fund evidencing loans made from
such Literary Fund by the State Board of Education pursuant to the pro-
visions of §§ 22-101 to 22-113 and the State Board of Education is hereby
authorized to assign such bonds, notes and other evidences of debt to the
Board whenever the Board desires to invest any of such trust funds therein
and the State Board of Education consents thereto; and when such bonds,
notes or other evidences of debt are so acquired by the Board the same
may not be sold or otherwise disposed of except to a State governmental
agency.

(b) In lieu of exercising all of the powers hereunder with respect to
the investment and reinvestment of the several funds, the Board may dele-
gate such powers to the Treasury Board, in which event said Treasury
Board shall exercise said investment powers as prescribed herein.

(c) The Board shall have power to borrow money from time to time
in such amounts as may be necessary to discharge current obligations under
this chapter whenever in its judgment by so doing it would be more ad-
vantageous than by selling securities held by the retirement system. Any
debt so incurred may be evidenced by notes duly authorized by resolution
of the Board, but in no case is the due date of any note, notes or other evi-
dence of debt to be beyond the end of the biennium succeeding the biennium
in which such debt is incurred. Securities held by the retirement system
may be hypothecated by the Board as security for the payment of any debt
incurred under this section. At such time as § 115-a of the Constitution of
Virginia is amended to permit the same, the Board shall have power to
invest such trust funds in evidences of debt of the school boards of the
several counties, provided the provisions of Chapter 7 of Title 22 of the
Code of Virginia have been complied with by such school board and such
further conditions as the Board may impose have been complied with. No
such evidence of debt so acquired by the Board shall be sold or otherwise
disposed of except to a State governmental agency.