                                 CODE OF VIRGINIA

CONTRACTS (§ 22.1-232)

A. Where a school board undertakes a career and technical education project by
contract with a corporation, the school board may advance, contribute and loan
funds to the corporation. The contract shall contain:

   1. a system of accounting;

   2. the terms upon which any profits from the sale of the project will be
   allocated between the school board and the corporation;

   3. conditions for the return with interest of any funds advanced by the school
   board;

   4. a provision that upon the dissolution of the corporation, any assets
   remaining after payment of just debts shall be transferred to and become the
   property of the school board;

   5. a provision that, upon the completion of any project, the school board may
   determine not to participate in further projects;

   6. a provision that the school board may at any time require the return of
   funds to which it is entitled.

B. Where the school board contributes or loans funds to the corporation, such
contract shall provide for the posting of a bond with surety by the officers of
the corporation conditioned to protect the rights of the school board.

C. Such contract may provide for the establishment of an escrow fund for the
purpose of funding future projects.

HISTORY: Code 1950, §§ 22-330.41, 22-330.42; 1974, c. 336; 1980, c. 559; 2001,
c. 483.