22.1-110 - Temporary loans to school boards.
§ 22.1-110. Temporary loans to school boards.
No school board shall borrow any money in any manner for any purpose withoutexpress authority of law. Any loan negotiated in violation of this sectionshall be void. Subject to the approval of the governing body or bodiesappropriating funds to the school board, any school board is authorized toborrow money, when necessary, not to exceed in the aggregate one-half of theamount produced by the school levy for the school division for the year inwhich such money is so borrowed or one-half of the amount of the cashappropriation made to such school board for the preceding year or, in schooldivisions for which there is both a school levy and appropriation, one-halfof the amount of each. Such loans shall be evidenced by notes or bondsnegotiable or nonnegotiable, as the school board determines. In the case oftemporary loans in anticipation of loans from the Literary Fund, such loansshall be repaid within two years of their dates. Other temporary loans shallbe repaid within one year of their dates. However, loans made to purchase newschool buses to replace obsolete or worn out equipment shall be repaid withinnot less than 10 years of their dates.
(Code 1950, § 22-120; 1980, c. 559; 1987, c. 251; 2006, c. 239.)