Virginia Code Title 22.1. Education § 22.1-148. Restrictions upon making loans;  retirement of previous loans;  waiting lists

A. No loan from the Literary Fund shall exceed 100 percent of the cost of the building, addition thereto, and site for which such loan is made.  No loan shall be made from the Literary Fund to aid in the erection of a building or addition that costs less than $500.  Whenever a loan is made from the Literary Fund for the purpose of enlarging a building, any part of the proceeds of such loan may, in the discretion of the Board, be used to retire any previous loan or loans on such building although not matured at the time of such additional loan.  The Board may refuse to make any loan from the Literary Fund to any school board that is in default in the payment of any part of the principal of any previous loan from the Literary Fund or which for the two years next preceding the loan has been more than six months in default in the payment of interest due on any loan from the Literary Fund.

B. Any school division that has an application for a Literary Fund loan for an approved school project pending before the Board shall not be denied or delayed in obtaining such loan solely for the reason that alternative financing had been obtained to begin or complete construction on such project.

C. Notwithstanding the provisions of subsection B, the Board may remove any project that has been inactive for at least five years from any project waiting list that it maintains.