                                 CODE OF VIRGINIA

TEMPORARY LOANS TO SCHOOL BOARDS (§ 22.1-110)

No school board shall borrow any money in any manner for any purpose without
express authority of law. Any loan negotiated in violation of this section shall
be void. Subject to the approval of the governing body or bodies appropriating
funds to the school board, any school board is authorized to borrow money, when
necessary, not to exceed in the aggregate one-half of the amount produced by the
school levy for the school division for the year in which such money is so
borrowed or one-half of the amount of the cash appropriation made to such school
board for the preceding year or, in school divisions for which there is both a
school levy and appropriation, one-half of the amount of each. Such loans shall
be evidenced by notes or bonds negotiable or nonnegotiable, as the school board
determines. In the case of temporary loans in anticipation of loans from the
Literary Fund, such loans shall be repaid within two years of their dates. Other
temporary loans shall be repaid within one year of their dates. However, loans
made to purchase new school buses to replace obsolete or worn out equipment
shall be repaid within not less than 10 years of their dates.

HISTORY: Code 1950, § 22-120; 1980, c. 559; 1987, c. 251; 2006, c. 239.