2006 Code of Virginia § 22.1-148 - Restrictions upon making loans; retirement of previous loans

22.1-148. Restrictions upon making loans; retirement of previous loans.

A. No loan from the Literary Fund shall exceed 100% of the cost of thebuilding, addition thereto, and site on account of which such loan is made.No loan shall be made from the Literary Fund to aid in the erection of abuilding or addition to cost less than $500. Whenever a loan is made from theLiterary Fund for the purpose of enlarging a building, any part of theproceeds of such loan may, in the discretion of the Board, be used to retireany previous loan or loans on such building although not matured at the timeof such additional loan. No loan shall be made from the Literary Fund in anycase in which the payment of same with interest would, in the judgment of theBoard of Education, entail too heavy a charge upon the revenues of thecounty, city or town comprising the school division to which such loan isgranted. The Board may refuse to make any loan from the Literary Fund to anyschool board which is in default in the payment of any part of the principalof any previous loan from the Literary Fund or which for the two years nextpreceding the loan has been more than six months in default in the payment ofinterest due on any loan from the Literary Fund.

B. Any school division which has an application for a Literary Fund loan foran approved school project pending before the Board of Education shall not bedenied or delayed in obtaining such loan solely for the reason thatalternative financing had been obtained to begin or complete construction onsuch project.

(Code 1950, 22-111; 1980, c. 559; 1985, c. 226; 1994, c. 689.)