CHAPTER 486

An Act to amend and reenact § 28-19, as amended, of the Code of Vir-
ginta, 80 as to provide for a maximum interest rate of six per centum
on bonds issued by certain educational institutions, [H 605]

Approved March 29, 1958

Be it enacted by the General Assembly of Virginia:

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

§ 23-19. (a) Every institution shall have power and is hereby auth-
orized 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 designated the issuing, sales, and pay-
ing 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 con-
nection with the project for the erection of which such bonds are issued,
and the cost of issuance of the bonds, including printing, engraving, ad-
vertising, legal and other similar expenses.

(b) Such bonds shall be authorized by resolution of the board, ap-
proved 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 * six per centum per annum payable at
such time or times, be in such denominations, be in such form, either cou-
pon or registered, 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 pub-
lic or private sale for such price or prices as the board with the approval
of the Governor shall determine, provided that the interest cost to matur-
ity of the money received for any issue of such bonds shall not exceed *
siz 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 con-
tain 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 ex-
penses of the operation 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, occupations, products and/or
services of the project or any services rendered therein, and the amount
to be raised in each year thereby 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 regula-
tion and disposition thereof ; ;

(5) Limitations on the right of the institution to restrict and regu-
late 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 contract 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 connec-
tion 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 sub-
division (b) of this section shall be construed to require the costs or ex-
penses 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 derived 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 mak-
ing such determination the board must exclude all funds received or re-
ceivable from the State. Any provision of the general laws to the con-
trary 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 he
subject, to any personal liability or accountability by reason of the issuance

ereof.

(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 interest. All bonds so purchased
shall be cancelled unless purchased as an endowment fund investment. This
paragraph shall not apply to the redemption of bonds.