                                 CODE OF VIRGINIA

LOAN DECLARED INDEBTEDNESS OF THE COUNTY, CITY OR TOWN; LIEN ON LOCALITY&#8217;S
FUNDS CREATED (§ 22.1-161)

Any bonds or notes of a school board held by the Literary Fund are hereby
declared to be valid and legally binding indebtedness of the county, city or
combination thereof constituting the school division or of the town if the town
constitutes the school division. There shall be a lien in favor of the Literary
Fund on all funds and income of the county, city or town for the amount of such
bonds and notes. Therefore, Literary Fund loans are considered to be general
obligation debt of the governing body as defined in § 15.2-2602, and are
subject to the provisions of §§ 15.2-2638 and 15.2-2659. The provisions of
this section shall not be affected by the release of any memorandum of lien
pursuant to subsection B of § 22.1-151.

HISTORY: Code 1950, §§ 22-102, 22-115; 1956, c. 184; 1971, Ex. Sess., c. 128;
1980, c. 559; 2007, c. 121; 2008, c. 365.