CHAPTER 635

An Act to amend and reenact §§ 28-14, as amended, 28-15, 28-19, as
amended, 28-21, as amended, 28-22, as amended, and 28-26, as amended
of the Code of Virginia, 1950, classifying certain educational institu-
tions of the Commonwealth, defining the projects which may be

ed and erected by such educational institutions and authorizing
such educational institutions to charge and collect rents, fees and
charges for the use of such projects and any existing facilities, to
charge and collect student building fees and other student fees and to
pledge the same and any other available funds of such educational
institutions to pay the principal of and the interest on bonds issued
to pay the cost of any project and the cost of maintenance and opera-
tion of any such project and any such existing facilities the revenues
of which are pledged in whole or in part to such bonds. rH

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:

1. That §§ 28-14, as amended, 23-15, 23-19, as amended, 28-21, as
amended, 23-22, as amended and 23-26, as amended of the Code of Virginia,
1950, be amended and reenacted as follows:

§ 28-14. Certain educational institutions declared governmental in-
strumentalities; powers vested in majority of members of board.—The
College of William and Mary in Virginia, at Williamsburg; the Medical
College of Virginia, at Richmond; the board of visitors of the Virginia
State School, at Newport News; the Virginia Institute of Marine Science,
at Gloucester Point; * the Mary Washington College of the University
of Virginia, at Fredericksburg; the Madison College, at Harrisonburg; *
the Richmond Professional Institute, at Richmond; the Radford College, *
at Radford; the rector and visitors of the University of Virginia, at
Charlottesville; the Virginia Military Institute, at Lexington; the Virginia
Polytechnic Institute, at Blacksburg; the Longwood College, at Farmville;
the Old Dominion College, at Norfolk; the Virginia School for the Blind,
at Charlottesville; the Virginia School for the Deaf and Blind, at Staun-
ton; the Virginia State College, at Petersburg; and the Woodrow Wilson
Rehabilitation Center, at Fishersville are hereby classified as educational
institutions and are declared to be public bodies and constituted as gov-
ernmental instrumentalities for the dissemination of education. The
powers of every such institution derived directly or indirectly from this
chapter shall be vested in and exercised by a majority of the members
of its board, and a majority of such board shall be a quorum for the
transaction of any business authorized by this chapter.

§ 23-15. Definitions—Whenever as used in this chapter, unless a
different meaning clearly appears from the context:

(a) “institution” shall mean any educational institution referred to
in § 238-14 hereof.

(b) “board” shall mean the board of visitors, board of trustees, or
other governing body, by whatever name known, of an institution.

(c) “bonds” shall mean any bonds, certificates of indebtedness or other
obligations of an institution issued by an institution pursuant to this chap-

er.

(d) “Governor” shall mean the Governor of the State of Virginia. _

(e) “project” shall mean any building, * facility, addition, extension
or improvement of a capital nature required by or convenient for the pur-
poses of an educational institution, including, without limitation, adminis-
tration, teaching, lecture and exhibition halls, libraries, dormitories, stu-
dent apartments, faculty dwellings, dining halls, cafeterias, snack bars,
laundries, hospitals, laboratories, research centers, infirmaries, field houses,
gymnasiums, auditoriums, student unions, recreation centers, stadiums,
athletic facilities, garages, parking facilities, warehouses and storage
buildings, book and student supplies centers and all buildings, lands and
any other appurtenances and equipment necessary or desirable in connec-
tion therewith or incidental thereto.

(f) “To erect” or “erection” shall include building, constructing, re-
constructing, erecting, extending, bettering, equipping, and improving.

§ 23-19. Amount of bonds; purposes; resolutions; Treasury Board
to be issuing, etc., agent; payment 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 Treas-
ury Board which is hereby designated 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 printing, engraving, advertising, 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 coupon or reg-
istered, 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
determine, provided that the interest cost to maturity of the money re-
ceived for any issue of such bonds shall not exceed six per centum per
annum; however, prior to the issuance of bonds to finance any “project”
after the first day of September, 1965, the approval of the General Assem-
bly must be obtained; and provided further that on or before the first
day of September in 1965 and biennially thereafter in the odd-numbered
years each educational institution shall submit to the Governor any project
or projects and the estimated cost of each separate project such educa-
tional institution desires to have financed under the provisions of this Act,
and the Governor shall consider such projects and make his recommen-
dation to the General Assembly in the budget submitted in accordance
with the provisions of § 2-54 of the Code of Virginia, 1950, as amended.
Each educational institution is authorized to finance only those projects
approved by the General Assembly in the Appropriation Act for the
biennium covered by such Appropriation Act, which projects need not be
limited to the projects recommended by the Governor.

(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 (§ 23-18) hereof.

(d) Any resolution or resolutions authorizing such bonds may con-
tain a provision * or provisions which shall be part of the contract with
the holders of such bonds as to

* (1) fixing, revising, charging and collecting fees, rents and charges
for or in connection with the use, occupation or services of the project
and pledging the same and any increases in revenues to be derived from
any existing facilities at such institution resulting from any increase in the
fees, rents or charges for or in connection with the use, occupation or
services of any such existing facilities to the payment of the principal of
and the interest on such bonds;

(2) fixing, revising, charging and collecting fees, rents and charges
for or in connection with the use, occupation or services of any existing
facilities at such institution and pledging the same to the payment of the
principal of and the interest on such bonds;

($) fixing, revising, charging and collecting student building fees and
other student fees from students enrolled at such institution and pledging
the same in whole or in part to the payment of the principal of and the
interest on such bonds;

(4) pledging to the payment of the principal of and the interest on
such bonds any moneys avatlable for the use of such institution and which
are not required by law or by previous binding contract to be devoted to
some other purpose;

(5) paying the cost of operating and maintaining any project and
any such existing facilities from any one or more of the revenue sources
mentioned in clauses (1), (2), (8) and (4) of this subdivision, creating
haeeere for such purposes and providing for the use and application
thereof ;

(6) creating sinking funds for the payment of the principal of and
the interest on such bonds, creating reserves for such purposes and pro-
viding for the use and application thereof ;

(7) limiting the right of the institution to restrict and regulate the
use, occupation and services of the project and such other existing facils-
ties or the services rendered therein;

(8) limiting the purposes to which the proceeds of sale of any issue
of bonds then or thereafter to be issued may be applied;
(9) lmiting the issuance of additional bonds;

(10) setting forth the procedure, if any, by which the terms of any
contract with the holders of such bonds may be amended or abrogated and
the manner in which such consent of such holders to any such amendment
or abrogation may be given; and

(11) setting forth such other condition or conditions as may be

required by the United States of America or any federal agency as a con-
dition 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 to partially 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 that such other condition or
conditions are 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 * any one or more of the revenue sources mentioned in clauses
(1), (2), (8) and (4) of subdivision (d) of this section and pledged there-
for pursuant to a resolution adopted under said subdivision (d). Such
bonds shall in no event constitute an indebtedness of the institution,
except to the extent of the collection of such revenues and such institu-
tion shall not be liable to pay such bonds or the 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 and any such other existing facilities to be
paid out of any funds other than the revenues derived from the sources
mentioned in clauses (1), (2), (8) and (4) of subdivision (d) of this
section and pledged therefor. 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, Code of Virginia, as amended.

(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
subj ee 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 pur-
chased shall be cancelled unless purchased as an endowment fund invest-
ment. This paragraph shall not apply to the redemption of bonds.

(h) In any case in which an institution shall have obtained a loan
for or in aid of the erection of any project from the United States of
America or any federal agency, which loan requires the establishment
of a debt service reserve, the institution, with the consent of the Governor,
may deposit securities in a separate collateral account in an amount equal
to the required debt service reserve, which securities shall be pledged to
meet the debt service requirements only if the * revenues derived from any
one or more of the sources mentioned in clauses (1), (2), (3) and (4) of
subdivision (d) of this section and pledged for the payment of such loan
become insufficient for such purpose. The face value of United States
government securities and the market value of all other securities shall
be deemed to be the value of any securities so deposited. Nothing herein
shall be construed as prohibiting repayment of any portion of such loan
from income derived from the securities so deposited. No securities shall
be deposited in any such collateral account unless the same shall have been
purchased with funds, the use of which is in no wise limited or restricted
or shall have been donated to such institution for the purpose of estab-
lishing such debt service reserve.

§ 23-21. * Proceeds of bonds and revenues to be paid into State
treasury.—All moneys derived from the sale of bonds and all revenues
derived from any one or more of the sources mentioned in clauses (1),
(2), (3) and (4) of subdivision (d) of § 28-19 shall be paid into the State
treasury and any such moneys and revenues so paid into the State treasury
shall be set aside in special funds and devoted solely to the payment of the
cost of erecting the project for which such bonds shall have been issued
and to the payment of the principal of and the interest on such bonds and
of the cost of maintenance and operation of such project and of any other
existing facilities the revenues of which are pledged either in whole or
part to the payment of the principal of and the interest on such bonds,
respectively, and are hereby specifically appropriated for those purposes
to be paid out by the State Treasurer on warrants of the Comptroller to
be issued on vouchers of the treasurer or other fiscal officer of the board
of such institution.

§ 23-22. Accounts to be kept by boards; reports to Governor.—The
board of every institution shall keep and preserve complete and accurate
accounts of all sums of money received and disbursed in connection with
the acquisition, erection, lease, operation and maintenance of any project
and any such other existing facilities including without limitation a com-
plete and accurate record of all * revenues derived from any one or more
of the sources mentioned in clauses (1), (2), (8) and (4) of subdivision
(d) of § 28-19 and all sums disbursed for the payment of the principal
of or interest on or other debt service with respect to any bonds issued pur-
suant to the authority of this chapter and such annual portion of * such
revenues as shall not be required to discharge in due course any obliga-
tion, liability or debt of the institution incurred in connection with the
project or such other existing facilities, including the creation of reserves
for such purposes, shall be paid into the State treasury, as provided in
§ 28-21. The board shall prepare and transmit to the Governor, at such
times as he shall require, complete and accurate reports as to the state of
such accounts and records, together with such information as the Governor
may require with respect thereto.

§ 23-26. State not to limit revenues of institutions.—The State of

Virginia does pledge to and agree with the holders of the bonds issued by
any institution that the State will not limit or alter the rights hereby
vested in such institution to establish and collect * the fees, rents and
charges, * including student building fees and other student fees and to
pledge the same, all as provided for in clauses (1), (2), (8) and (4) of
subdivision (d) of § 28-19 as may be convenient or necessary to produce
sufficient revenues to meet the expense of maintenance and operation of
such project and such other existing facilities and to fulfill the terms of
any agreements made with the holders of the bonds or in any way to
impair the rights and remedies of such holders, until the bonds, together
with interest thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or proceedings by
or on behalf of such holders are fully met and discharged.
2. The provisions of this act are severable and if any of its provi-
sions shall be held unconstitutional by any court of competent jurisdiction,
the decision of such court shall not affect or impair any of the remaining
provisions of this act. It is hereby declared to be the legislative intent that
this act would have been adopted had such unconstitutional provisions not
been included therein.

8. Anemergency exists, and this act is in force from its passage.