CHAPTER 17

An Act authorizing the issuance of State of Virginia Higher Educational
Institutions Bonds in an amount not exceeding sixty-seven million
tivo hundred thirty thousand dollars ($67.230.000) for the purpose
of providing funds with any other available funds, for paring the
cost of acquiring or constructing capital improvements at institutions
of higher education in the State; authorizing the Treasury Board, by
and with the consent of the Governor, to fix the details of such bonds
and to provide for the sale of such bonds at nublic or private sale:
providing for the pledge of the full faith, credit and taxing power of
the State for the payment of the interest on such bonds and the
principal thereof and further providing that such bonds shall be
exempt from all taxation within the State; and providing that this
act shall not become effective and that no bonds shall be issued here-
under unless this act, as supplemented as provided therein, shall be
approved by a majority of the qualified voters of the State voting
thereon at an election to be held on Tuesday, November 5, 1968, as
required by Section 184a of the Constitution of Virginia.

[H 305]

Approved February 9, 1968

Be it enacted by the General Assembly of Virginia:
_ § 1._ This act shall be known and mav be cited as the “State of
Virginia Higher Educational Institutions Bond Act of 1968”.
§ 2. Subject to a favorable vote of a majority of all the votes cast
for or against this act, as supplemented as hereinafter provided, at the
November 5, 1968, general election as hereinafter provided, the Treasury
Board is hereby authorized, by and with the consent of the Governor, to
sell and issue, at one time or from time to time, bonds of the State, to be
designated “State of Virginia Higher Educational Institutions Bonds,
Series.................. ” in an aggregate principal amount not exceeding sixty-
seven million, two hundred thirty thousand dollars ($67,230,000). The
proceeds of such bonds shall be used exclusively for the purpose of pro-
viding funds, with any other available funds, for paying the cost of acquir-
ing or constructing capital improvements at the higher educational institu-
tions of the State as hereinafter provided.

§ 3. The proceeds of the bonds herein authorized shall be expended
by the State Treasurer for paying all or any part of the cost of the acqui-
sition or construction of capital improvements at State-supported institu-
tions of higher education in Virginia, including community colleges and
four year colleges, the allocation of the proceeds of such bonds and the
determination of the amount of the bonds to be issued shall be made by
the General Assembly hereafter during this session by an act supplemen-
tary to this act. The term “capital improvements” shall comprise any one
or more buildings, facilities, additions, extensions and improvements of a
capital nature required by or convenient for the purposes of an educational
institution. including, without limitation, administration, teaching, lecture
and exhibition halls, libraries, dormitories, student apartments, faculty
dwellings, dining halls, hospitals, research centers, infirmaries, field
houses, gymnasiums, auditoriums, student unions, recreation centers,
stadiums and athletic facilities, which shall include any necessary land and
any equipment, facilities and appurtenances necessary or desirable in con-
nection therewith or ancillary thereto, including, without limitation, dining
facilities, cafeterias, snack bars, laundries, laboratories, garages and park-
ing facilities.

The proceeds of said bonds may be used with any Federal funds which
may be made available for such purpose.

§ 4. The bonds of each issue shall be dated, shall] bear interest at such
rate or rates not exceeding five per centum (5%) per annum, shall mature
at such time or times not exceeding twenty (20) years from their date or
dates, as may be determined by the Treasury Board, by and with the con-
sent of the Governor, and may be made redeemable before their maturity
or maturities at such price or prices and under such terms and conditions
as may be fixed by the Treasury Board prior to the issuance of the bonds.
The principal of and the interest on said bonds may be made payable in
any lawful medium. The Treasury Board shall determine the form of the
bonds, including any interest coupons to be attached thereto. and shall fix
the denomination or denominations of the bonds and the place or places
of payment of principal and interest thereof, which may be at the office
of the State Treasurer or at any bank or trust company within or without
the State.

All bonds issued under the provisions of this act shall have and are
hereby declared to have, as between successive holders. all the qualities
and incidents of negotiable instruments under the negotiable instruments
law ot the State.

The bonds may be issued in coupon or in registered form, or both, as
the Treasury Board may determine, and provision may be made for the
registration of any coupon bonds as to principal alone and also as to both
principal and interest, and for the reconversion of any bonds registered
as to both principal and interest into coupon bonds.

The Treasury Board may sell such bonds in such manner, either at
public or private sale, and for such price as it may determine, by and
with the consent of the Governor, to be for the best interests of the State,
but no such sale shall be made at a price so low as to require the payment
of interest on the money received therefor at more than five per centum
(5%) per annum, computed with relation to the absolute maturity or
maturities of the bonds in accordance with standard tables of bond values,
excluding, however, from such computation, the amount of any premium
to be paid on the redemption of any bonds prior to maturity.

§ 5. Said bonds shall be signed on behalf of the State by the Gov-
ernor or shall bear his facsimile signature and by the State Treasurer or
shall bear his facsimile signature and shall bear the lesser seal of the
State or a facsimile thereof. Any interest coupons shall bear a facsimile
of the signature of the State Treasurer. In the event that said bonds shall
bear the facsimile signature of the State Treasurer, said bonds shall be
signed by such administrative assistant as the State Treasurer shall
determine. In case any officer whose signature or a facsimile of whose
Signature shall appear on any bonds or coupons shall cease to be such
officer before the delivery of such bonds, such signature or such facsimile
shall nevertheless be valid and sufficient for all purposes the same as if
he had remained in office until such delivery.

§ 6. All expenses incurred under this act shall be paid from the
proceeds of said bonds or from any available funds as the Treasury Board
shall determine.

§ 7. The Treasury Board is hereby authorized, by and with the
consent of the Governor, to borrow money at the lowest rate of interest
obtainable, not in excess of five per centum (5%) per annum, and to
execute and issue notes of the State for the same, but only in the following
circumstances and under the following conditions:

(a) For anticipating the sale of any of said bonds the issuance of
which shall have been authorized by the Treasury Board and to which the
Governor shall have given his consent, if the Treasury Board and the Gov-
ernor shall deem it advisable to postpone the issuance of such bonds, or

(b) For the renewal of any loan evidenced by notes herein authorized.

§ 8. The proceeds (excluding any premium) of said bonds and of
the bond anticipation notes herein authorized (except the proceeds of
bonds the issuance of which has been anticipated by such bond anticipation
notes) shall be placed by the State Treasurer in a special capital outlay
fund in the State Treasury and shall be disbursed, upon the prior written
approval of the Governor, only for the purpose for which said bonds and
said bond anticipation notes shall be issued. Any premium shall be de-
posited to the credit of the sinking fund hereinafter created.

§ 9. Funds derived from the sale of bonds herein authorized shall
be used in the payment of any bond anticipation notes that may have been
issued in anticipation of the sale of such bonds and any renewals of such
rotes, and funds provided by the General Assembly for the payment of
ne interest on or the principal of bonds herein authorized shall be used
in paying the interest on or the principal of any notes and any renewals
thereof. Interest payable upon bond anticipation notes may be evidenced
oy interest coupons.

§ 10. The full faith, credit and taxing power of the State of Virginia
are hereby pledged for the payment of the principal of and the interest
yn the bonds and notes herein authorized.

In order to insure the payment of the interest on and the principal
9f said bonds, there is hereby created a sinking fund for such purpose to
which there shall be deposited annually, out of any available moneys in
fhe general fund of the State Treasury, a sum sufficient to pay the interest
yn and the principal of said bonds becoming due in each year. In the
vent that anv series of said bonds shall all become due in one year, there
shall be deposited annually to such sinking fund, in addition to the amount
necessary to pay interest on such bonds, a sum sufficient for redeemin
or paying all such bonds by their stated maturity, the amounts of suc
annual deposits to be determined by the Treasury Board, by and wit
the consent of the Governor, prior to the issuance of such bonds.

The moneys in such sinking fund shall be invested by the Treasur
Board in accordance with the provisions of general law relating to th
investment of sinking funds belonging to or within the control of th

tate

§ 11. The bonds and notes and coupons issued under the provision
of this act, their transfer and the income therefrom, including any profi
made on the sale thereof, shall at all times be free and exempt from taxa
tion by the State and by any municipality, county or other political sub
division thereof.

§ 12. All bonds and notes issued under the provisions of this ac
are hereby made securities in which all public officers and bodies of th
State, all counties, cities, towns and municipal subdivisions, all insurance
companies and associations, all savings banks and savings institutions, in
cluding savings and loan associations, trust companies, beneficial anc
benevolent associations, administrators, guardians, executors, trustee:
and other fiduciaries in the State may properly and legally invest fund:
under their control.

§ 13. The question of the effectiveness of this act, as supplementec
by the act provided for in § 3 hereof, and the authorization of the State
of Virginia Higher Educational Institutions Bonds herein authorizec
shall be submitted to the qualified voters of the State at the general elec-
tion to be held on Tuesday, November 5, 1968. Notice of said election
shall be published at least twice, the first publication being at least 46
days prior to said election, in such newspapers designated by the State
Board of Elections which collectively shall circulate throughout the State
Said election ‘shall be held under and in accordance with the laws of the
State relating to said general election. The State Board of Elections shall
cause to be printed and distributed the ballots which are to be used in
said election, which ballots shall be substantially in the following form:

OFFICIAL BALLOT
November 5, 1968
Chapter 2 ne ceececceeen , as supplemented by Chapter uu. ;
Acts of the General Assembly of 1968. Authorizing: occ
Dollars State of Virginia Higher Educational Institutions Bonds.

[] For Chapter 00... as supplemented by Chapter uuu:
Acts of the General Assembly of 1968, authorizing the issuance of
svesecuuesteccenuessecenuesescenueeseee Dollars ($ ns State of Virginia Higher
Educational Institutions Bonds.

(] Against Chapter _.0 wu... . as supplemented by Chapter ....... uu...
Acts of the General Assembly of 1968, authorizing the issuance of
sessssessonunesecseseneeseceenensessseeee Dollars ( ; nn State of Virginia Higher
Educational Institutions Bonds.

Those voting at said election who are in favor of this act, as sup-
plemented, and the authorization of said bonds shall vote by making a
check (\/) or a cross (Xx or +) mark or a line (—) in the square opposite

the words “For Chapter ........................ , as sunpvlemented by Chapt ) so anennene
Acts of the General Assembly of 1968, authorizing the issnanre of
sesssesusssessarsssuseseecersesuueveceeceeetens Dollars ( State of Virginia Higher

Educational Institutions Bonds.”

Those voting at said election who are onnosed to this act. as sup-
plemented, and the authorization of ssid honds shall vote by making a
heck (\/) or a cross (X or +) mark or a line (—) in the square opposite
the words “Against Chapter ................. . as enpplemented by Chanter scecscesanenenee
Acts of the General Assembly of 1968, authorizing the issuance of
ateekeencannecnesececdeansanssasaaemennncwaansne BIUTGALS Di... - eee cece cece teste enteceer eee eecceeeee yy WILAUE UL Vit BsltiG S21 BR sics
Educational Institutions Bonds.”

Notwithstanding the foregoing provisions of this section, voting
machines may be used as prescribed by law or in accordance with rules
and regulations prescribed by the State Board of Elections.

If a majority of those voting thereon shall vote in favor of this act,
as supplemented, and the authorization of said bonds, said bonds may be
issued as hereinabove provided. In the event a majority of those voting
thereon shall vote against this act, as supplemented, and the authoriza-
tion of said bonds, said bonds shall not be issued.

The result of said election shall be canvassed and ascertained and
shall be certified by the State Board of Elections, all as provided by Title
24 of the Code of Virginia (1950), as amended, for general elections with
necessary changes in points of detail for application to a State-wide
referendum.

§ 14. This act, and the supplementary act provided for in § 8
hereof, shall be published, in full, by the Clerk of the House of Delegates
in one daily newspaper published in the city of Richmond, in the city of
Norfolk and in the city of Roanoke once in each of the months of August,
September and October, 1968.

15. This act, as supplemented by the act provided for in § 8
hereof, shall become effective upon approval by the voters as provided for
erein.