CHAPTER 162

AN ACT to amend and reenact §§ 22-112, as amended, of the Code of Vir-
ginia, relating to the rate of interest, method of payment and evidence

of Literary Fund loans. 3 88

[ ]

Approved March 38, 1958

Be it enacted by the General Assembly of Virginia:

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

§ 22-112. All loans made on or before January, first, nineteen hundred
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 * three 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 invest-
ment of the reserves of the Virginia Retirement System in such amount
as may be approved by the Virginia Retirement Board in accordance 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 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 interest 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 * three per centum per annum, payable annually. Every
loan heretofore or hereafter made under the provisions of this Chapter,
except those loans made prior to April first, nineteen hundred fifty-eight,
by selling the bonds of the cities and counties for investment of the reserves
of the Virginia Retirement System, shall bear interest at a rate not to exceed
three per centum per year. 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.

2. An emergency exists and this act is in force from its passage.