{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/22.1-166.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/22.1-166.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/22.1-166.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/22.1-166.1.html"}],"law_id":61249,"edition_id":1,"section_id":61249,"structure_id":14222,"section_number":"22.1-166.1","catch_line":"Loans to local school boards","history":"1990, c. 909.","full_text":"The Authority is authorized to make loans or loan interest rate subsidy payments, from any of the funds of the Authority available for such purpose, to local school boards for the purpose of acquiring and installing capital projects for school purposes for which loans from the Literary Fund are not immediately available. For the purpose of this section and \u00a7 22.1-166.2, capital projects for school purposes shall mean motor vehicles and educational technology equipment.\n\nA\n\nNo loan from the Authority shall exceed 100 percent of the cost of the capital project for school purposes for which such loan is made.B\n\nA loan from the Authority shall be evidenced by notes payable to the Authority, executed or signed by the chairman of the school board, with the approval of the local governing body, attested by the clerk thereof and deposited with the State Treasurer. Payments of interest and principal on such notes shall be made to the State Treasurer. Any loan from the Authority shall be repayable in installments as shall be approved by the local school board, as appropriate, with the final installment being due not more than thirty years after the date of such loan. The time of payment may be extended in the discretion of the Authority.C\n\nThe local governing bodies and the local school boards of the several school divisions are authorized to borrow money from the Authority, at such rate or rates, fixed or variable, as shall be approved by the local school board; any local school board to borrow from the Authority shall first make written application to the Authority for such loan on a form to be prescribed by the Authority.D\n\nThe governing body of any county, city, or town, if the town constitutes the school division, in which the local school board has borrowed money from the Authority shall include in its levies, and appropriate to the local school board, a fund sufficient to meet the liabilities of the local school board on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly. The governing body of any county in which the local school board has borrowed money from the Authority for capital projects located in a town in such county constituting a separate school division shall have authority to include, in its levies for such town, a levy sufficient to meet the liabilities of the local school board on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly and shall levy a separate tax in the rest of the county to meet its liabilities on any contract for capital projects outside such town. In the event that such local school board shall fail to pay any installment of interest or principal promptly, upon notice in writing to that effect from the State Treasurer, the county, city, or town treasurer shall pay to the State Treasurer any such past due installment of interest or principal out of the funds in his hands belonging to such county, city, or town. The failure of such governing body to provide for the payment of such loan or the interest thereon when and as due shall be deemed a cause for removal of the members thereof from office on motion before the circuit court having jurisdiction in such county, city, or town, instituted by the attorney for the Commonwealth of such county or city or by the Attorney General where the attorney for the Commonwealth refuses or neglects to act after demand on him to proceed.E\n\nThe local school board of any school division composed of part or all of a county, with the approval of the governing body of the county, is authorized to borrow from the Authority for the purpose of financing capital projects in such county to serve a portion of such county. Taxes on property in the magisterial districts served by such capital projects shall be levied by the governing body of the county and collected for the purpose of repaying such loan; for the purposes of this section, a magisterial district shall not include a town constituting a separate school division but the governing body of the county may levy a separate tax on property in a town in such county constituting a separate school division to repay money borrowed by such county from the Authority for the purpose of financing capital projects in such town. Except as otherwise provided by this subsection, all other provisions of law relating to loans from the Authority shall apply to a loan authorized by this subsection.F\n\nAny local school board which is indebted for any money borrowed from the Authority may anticipate the payment of the principal amount of any such loans, or any part thereof, by the payment of such principal amount with interest thereon to the date of such anticipated payment and may borrow money and issue bonds for the purpose of raising funds to pay any notes or other obligations of the local school board now and hereafter held by the Authority.","order_by":null,"text":{"0":{"id":223809,"text":"The Authority is authorized to make loans or loan interest rate subsidy payments, from any of the funds of the Authority available for such purpose, to local school boards for the purpose of acquiring and installing capital projects for school purposes for which loans from the Literary Fund are not immediately available. For the purpose of this section and \u00a7 22.1-166.2, capital projects for school purposes shall mean motor vehicles and educational technology equipment.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"A"},"1":{"id":223810,"text":"No loan from the Authority shall exceed 100 percent of the cost of the capital project for school purposes for which such loan is made.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"","next_prefix":"B"},"2":{"id":223811,"text":"A loan from the Authority shall be evidenced by notes payable to the Authority, executed or signed by the chairman of the school board, with the approval of the local governing body, attested by the clerk thereof and deposited with the State Treasurer. Payments of interest and principal on such notes shall be made to the State Treasurer. Any loan from the Authority shall be repayable in installments as shall be approved by the local school board, as appropriate, with the final installment being due not more than thirty years after the date of such loan. The time of payment may be extended in the discretion of the Authority.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"3":{"id":223812,"text":"The local governing bodies and the local school boards of the several school divisions are authorized to borrow money from the Authority, at such rate or rates, fixed or variable, as shall be approved by the local school board; any local school board to borrow from the Authority shall first make written application to the Authority for such loan on a form to be prescribed by the Authority.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"4":{"id":223813,"text":"The governing body of any county, city, or town, if the town constitutes the school division, in which the local school board has borrowed money from the Authority shall include in its levies, and appropriate to the local school board, a fund sufficient to meet the liabilities of the local school board on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly. The governing body of any county in which the local school board has borrowed money from the Authority for capital projects located in a town in such county constituting a separate school division shall have authority to include, in its levies for such town, a levy sufficient to meet the liabilities of the local school board on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly and shall levy a separate tax in the rest of the county to meet its liabilities on any contract for capital projects outside such town. In the event that such local school board shall fail to pay any installment of interest or principal promptly, upon notice in writing to that effect from the State Treasurer, the county, city, or town treasurer shall pay to the State Treasurer any such past due installment of interest or principal out of the funds in his hands belonging to such county, city, or town. The failure of such governing body to provide for the payment of such loan or the interest thereon when and as due shall be deemed a cause for removal of the members thereof from office on motion before the circuit court having jurisdiction in such county, city, or town, instituted by the attorney for the Commonwealth of such county or city or by the Attorney General where the attorney for the Commonwealth refuses or neglects to act after demand on him to proceed.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"5":{"id":223814,"text":"The local school board of any school division composed of part or all of a county, with the approval of the governing body of the county, is authorized to borrow from the Authority for the purpose of financing capital projects in such county to serve a portion of such county. Taxes on property in the magisterial districts served by such capital projects shall be levied by the governing body of the county and collected for the purpose of repaying such loan; for the purposes of this section, a magisterial district shall not include a town constituting a separate school division but the governing body of the county may levy a separate tax on property in a town in such county constituting a separate school division to repay money borrowed by such county from the Authority for the purpose of financing capital projects in such town. Except as otherwise provided by this subsection, all other provisions of law relating to loans from the Authority shall apply to a loan authorized by this subsection.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"6":{"id":223815,"text":"Any local school board which is indebted for any money borrowed from the Authority may anticipate the payment of the principal amount of any such loans, or any part thereof, by the payment of such principal amount with interest thereon to the date of such anticipated payment and may borrow money and issue bonds for the purpose of raising funds to pay any notes or other obligations of the local school board now and hereafter held by the Authority.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14222,"edition_id":1,"name":"Virginia Public School Authority","identifier":"11","label":"chapter","depth":2,"order_by":1,"parent_id":12823,"metadata":{},"date_created":"2026-06-26 03:47:21","date_modified":"2026-06-26 03:47:21","permalink":{"id":181141,"object_type":"structure","relational_id":14222,"identifier":"11","token":"22.1\/11","url":"\/22.1\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12823,"edition_id":1,"name":"Education","identifier":"22.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":180949,"object_type":"structure","relational_id":12823,"identifier":"22.1","token":"22.1","url":"\/22.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60646,"structure_id":14222,"section_number":"22.1-162","catch_line":"Definitions","url":"\/22.1-162\/","token":"22.1\/11\/22.1-162","metadata":false},{"id":55683,"structure_id":14222,"section_number":"22.1-163","catch_line":"Authority created; public body corporate and agency of Commonwealth","url":"\/22.1-163\/","token":"22.1\/11\/22.1-163","metadata":false},{"id":68781,"structure_id":14222,"section_number":"22.1-164","catch_line":"Board of Commissioners; membership; terms; compensation and expenses; chairman and vice-chairman; quorum; employees, agents, etc","url":"\/22.1-164\/","token":"22.1\/11\/22.1-164","metadata":false},{"id":79420,"structure_id":14222,"section_number":"22.1-165","catch_line":"Management and administration of moneys, etc., transferred from Literary Fund","url":"\/22.1-165\/","token":"22.1\/11\/22.1-165","metadata":false},{"id":69519,"structure_id":14222,"section_number":"22.1-166","catch_line":"Purchase and sale of local school bonds","url":"\/22.1-166\/","token":"22.1\/11\/22.1-166","metadata":false},{"id":61249,"structure_id":14222,"section_number":"22.1-166.1","catch_line":"Loans to local school boards","url":"\/22.1-166.1\/","token":"22.1\/11\/22.1-166.1","metadata":false},{"id":71860,"structure_id":14222,"section_number":"22.1-166.2","catch_line":"Grants to local school boards","url":"\/22.1-166.2\/","token":"22.1\/11\/22.1-166.2","metadata":false},{"id":78885,"structure_id":14222,"section_number":"22.1-167","catch_line":"Issuance of bonds of Authority","url":"\/22.1-167\/","token":"22.1\/11\/22.1-167","metadata":false},{"id":73854,"structure_id":14222,"section_number":"22.1-167.1","catch_line":"Refunding issues; pass-through of savings realized","url":"\/22.1-167.1\/","token":"22.1\/11\/22.1-167.1","metadata":false},{"id":85235,"structure_id":14222,"section_number":"22.1-167.2","catch_line":"Security for payment; appropriations","url":"\/22.1-167.2\/","token":"22.1\/11\/22.1-167.2","metadata":false},{"id":68625,"structure_id":14222,"section_number":"22.1-167.3","catch_line":"Bonds or notes issued for the purpose of making grants; security for payment; appropriations","url":"\/22.1-167.3\/","token":"22.1\/11\/22.1-167.3","metadata":false},{"id":73276,"structure_id":14222,"section_number":"22.1-168","catch_line":"Security for payment and bonds; provisions of trust indenture or resolution of Board","url":"\/22.1-168\/","token":"22.1\/11\/22.1-168","metadata":false},{"id":80085,"structure_id":14222,"section_number":"22.1-168.1","catch_line":"Reserve fund; limitations","url":"\/22.1-168.1\/","token":"22.1\/11\/22.1-168.1","metadata":false},{"id":59087,"structure_id":14222,"section_number":"22.1-169","catch_line":"Investment of funds","url":"\/22.1-169\/","token":"22.1\/11\/22.1-169","metadata":false},{"id":69727,"structure_id":14222,"section_number":"22.1-170","catch_line":"Repayments to Literary Fund","url":"\/22.1-170\/","token":"22.1\/11\/22.1-170","metadata":false},{"id":74494,"structure_id":14222,"section_number":"22.1-171","catch_line":"Powers of Authority enumerated","url":"\/22.1-171\/","token":"22.1\/11\/22.1-171","metadata":false},{"id":72150,"structure_id":14222,"section_number":"22.1-172","catch_line":"Bonds exempt from taxation","url":"\/22.1-172\/","token":"22.1\/11\/22.1-172","metadata":false},{"id":72965,"structure_id":14222,"section_number":"22.1-173","catch_line":"Bonds legal investments","url":"\/22.1-173\/","token":"22.1\/11\/22.1-173","metadata":false},{"id":77783,"structure_id":14222,"section_number":"22.1-174","catch_line":"Jurisdiction of suits against Authority; service of process","url":"\/22.1-174\/","token":"22.1\/11\/22.1-174","metadata":false},{"id":55435,"structure_id":14222,"section_number":"22.1-175","catch_line":"Transfers from Literary Fund to Authority","url":"\/22.1-175\/","token":"22.1\/11\/22.1-175","metadata":false}],"previous_section":{"id":69519,"structure_id":14222,"section_number":"22.1-166","catch_line":"Purchase and sale of local school bonds","url":"\/22.1-166\/","token":"22.1\/11\/22.1-166","metadata":false},"next_section":{"id":71860,"structure_id":14222,"section_number":"22.1-166.2","catch_line":"Grants to local school boards","url":"\/22.1-166.2\/","token":"22.1\/11\/22.1-166.2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/22.1-166.1\/","history_text":"

This law was first created in 1990. The record of its establishment is cataloged in chapter 909 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1990 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":78885,"section_number":"22.1-167","catch_line":"Issuance of bonds of Authority","order_by":null,"url":"\/22.1-167\/"}],"refers_to":[{"id":71860,"section_number":"22.1-166.2","catch_line":"Grants to local school boards","order_by":null,"url":"\/22.1-166.2\/"}],"permalink":{"id":181163,"object_type":"law","relational_id":61249,"identifier":"22.1-166.1","token":"22.1\/11\/22.1-166.1","url":"\/22.1-166.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/22.1-166.1\/","token":"22.1\/11\/22.1-166.1","dublin_core":{"Title":"Loans to local school boards","Type":"Text","Format":"text\/html","Identifier":"\u00a7 22.1-166.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The Authority<\/span> is authorized to make loans or loan interest rate subsidy payments, from any of the funds of the Authority<\/span> available for such purpose, to local school boards<\/span> for the purpose of acquiring and installing capital projects for school purposes for which loans from the Literary Fund are not immediately available. For the purpose of this section and \u00a7 22.1-166.2<\/a>, capital projects for school purposes shall mean motor vehicles and educational technology equipment.<\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> No loan from the Authority<\/span> shall exceed 100 percent of the cost of the capital project for school purposes for which such loan is made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A loan from the Authority<\/span> shall be evidenced by notes payable to the Authority<\/span>, executed or signed by the chairman of the school board<\/span>, with the approval of the local governing body<\/span>, attested by the clerk thereof and deposited with the State Treasurer. Payments of interest and principal on such notes shall be made to the State Treasurer. Any loan from the Authority<\/span> shall be repayable in installments as shall be approved by the local school board<\/span>, as appropriate, with the final installment being due not more than thirty years after the date of such loan. The time of payment may be extended in the discretion of the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The local governing bodies and the local school boards<\/span> of the several school divisions are authorized to borrow money from the Authority<\/span>, at such rate or rates, fixed or variable, as shall be approved by the local school board<\/span>; any local school board<\/span> to borrow from the Authority<\/span> shall first make written application to the Authority<\/span> for such loan on a form to be prescribed by the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The governing body of any county, city, or town, if the town constitutes the school division, in which the local school board<\/span> has borrowed money from the Authority<\/span> shall include in its levies, and appropriate to the local school board<\/span>, a fund sufficient to meet the liabilities of the local school board<\/span> on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly. The governing body of any county in which the local school board<\/span> has borrowed money from the Authority<\/span> for capital projects located in a town in such county constituting a separate school division shall have authority<\/span> to include, in its levies for such town, a levy<\/span> sufficient to meet the liabilities of the local school board<\/span> on such loan if and to the extent such liabilities are not otherwise provided for by the General Assembly and shall levy<\/span> a separate tax in the rest of the county to meet its liabilities on any contract<\/span> for capital projects outside such town. In the event that such local school board<\/span> shall fail to pay any installment of interest or principal promptly, upon notice in writing to that effect from the State Treasurer, the county, city, or town treasurer shall pay to the State Treasurer any such past due installment of interest or principal out of the funds in his hands belonging to such county, city, or town. The failure of such governing body to provide for the payment of such loan or the interest thereon when and as due shall be deemed a cause for removal of the members thereof from office on motion<\/span> before the circuit<\/span> court<\/span> having jurisdiction<\/span> in such county, city, or town, instituted by the attorney for the Commonwealth of such county or city or by the Attorney General<\/span> where the attorney for the Commonwealth refuses or neglects to act after demand on him to proceed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The local school board<\/span> of any school division composed of part or all of a county, with the approval of the governing body of the county, is authorized to borrow from the Authority<\/span> for the purpose of financing capital projects in such county to serve a portion of such county. Taxes on property in the magisterial districts served by such capital projects shall be levied by the governing body of the county and collected for the purpose of repaying such loan; for the purposes of this section, a magisterial district shall not include a town constituting a separate school division but the governing body of the county may levy<\/span> a separate tax on property in a town in such county constituting a separate school division to repay money borrowed by such county from the Authority<\/span> for the purpose of financing capital projects in such town. Except as otherwise provided by this subsection, all other provisions of law<\/span> relating to loans from the Authority<\/span> shall apply to a loan authorized by this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any local school board<\/span> which is indebted for any money borrowed from the Authority<\/span> may anticipate the payment of the principal amount of any such loans, or any part thereof, by the payment of such principal amount with interest thereon to the date of such anticipated payment and may borrow money and issue<\/span> bonds<\/span> for the purpose of raising funds to pay any notes or other obligations of the local school board<\/span> now and hereafter held by the Authority<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOANS TO LOCAL SCHOOL BOARDS (\u00a7 22.1-166.1)\n\nThe Authority is authorized to make loans or loan interest rate subsidy\npayments, from any of the funds of the Authority available for such purpose, to\nlocal school boards for the purpose of acquiring and installing capital projects\nfor school purposes for which loans from the Literary Fund are not immediately\navailable. For the purpose of this section and \u00a7 22.1-166.2, capital projects\nfor school purposes shall mean motor vehicles and educational technology\nequipment.\n\nA. No loan from the Authority shall exceed 100 percent of the cost of the\ncapital project for school purposes for which such loan is made.\n\nB. A loan from the Authority shall be evidenced by notes payable to the\nAuthority, executed or signed by the chairman of the school board, with the\napproval of the local governing body, attested by the clerk thereof and\ndeposited with the State Treasurer. Payments of interest and principal on such\nnotes shall be made to the State Treasurer. Any loan from the Authority shall be\nrepayable in installments as shall be approved by the local school board, as\nappropriate, with the final installment being due not more than thirty years\nafter the date of such loan. The time of payment may be extended in the\ndiscretion of the Authority.\n\nC. The local governing bodies and the local school boards of the several school\ndivisions are authorized to borrow money from the Authority, at such rate or\nrates, fixed or variable, as shall be approved by the local school board; any\nlocal school board to borrow from the Authority shall first make written\napplication to the Authority for such loan on a form to be prescribed by the\nAuthority.\n\nD. The governing body of any county, city, or town, if the town constitutes the\nschool division, in which the local school board has borrowed money from the\nAuthority shall include in its levies, and appropriate to the local school\nboard, a fund sufficient to meet the liabilities of the local school board on\nsuch loan if and to the extent such liabilities are not otherwise provided for\nby the General Assembly. The governing body of any county in which the local\nschool board has borrowed money from the Authority for capital projects located\nin a town in such county constituting a separate school division shall have\nauthority to include, in its levies for such town, a levy sufficient to meet the\nliabilities of the local school board on such loan if and to the extent such\nliabilities are not otherwise provided for by the General Assembly and shall\nlevy a separate tax in the rest of the county to meet its liabilities on any\ncontract for capital projects outside such town. In the event that such local\nschool board shall fail to pay any installment of interest or principal\npromptly, upon notice in writing to that effect from the State Treasurer, the\ncounty, city, or town treasurer shall pay to the State Treasurer any such past\ndue installment of interest or principal out of the funds in his hands belonging\nto such county, city, or town. The failure of such governing body to provide for\nthe payment of such loan or the interest thereon when and as due shall be deemed\na cause for removal of the members thereof from office on motion before the\ncircuit court having jurisdiction in such county, city, or town, instituted by\nthe attorney for the Commonwealth of such county or city or by the Attorney\nGeneral where the attorney for the Commonwealth refuses or neglects to act after\ndemand on him to proceed.\n\nE. The local school board of any school division composed of part or all of a\ncounty, with the approval of the governing body of the county, is authorized to\nborrow from the Authority for the purpose of financing capital projects in such\ncounty to serve a portion of such county. Taxes on property in the magisterial\ndistricts served by such capital projects shall be levied by the governing body\nof the county and collected for the purpose of repaying such loan; for the\npurposes of this section, a magisterial district shall not include a town\nconstituting a separate school division but the governing body of the county may\nlevy a separate tax on property in a town in such county constituting a separate\nschool division to repay money borrowed by such county from the Authority for\nthe purpose of financing capital projects in such town. Except as otherwise\nprovided by this subsection, all other provisions of law relating to loans from\nthe Authority shall apply to a loan authorized by this subsection.\n\nF. Any local school board which is indebted for any money borrowed from the\nAuthority may anticipate the payment of the principal amount of any such loans,\nor any part thereof, by the payment of such principal amount with interest\nthereon to the date of such anticipated payment and may borrow money and issue\nbonds for the purpose of raising funds to pay any notes or other obligations of\nthe local school board now and hereafter held by the Authority.\n\nHISTORY: 1990, c. 909.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}