22.1-161 - Loan declared indebtedness of the county, city or town; lien on locality's funds created.
§ 22.1-161. Loan declared indebtedness of the county, city or town; lien onlocality's funds created.
Any bonds or notes of a school board held by the Literary Fund are herebydeclared to be valid and legally binding indebtedness of the county, city orcombination thereof constituting the school division or of the town if thetown constitutes the school division. There shall be a lien in favor of theLiterary Fund on all funds and income of the county, city or town for theamount of such bonds and notes. Therefore, Literary Fund loans are consideredto 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 anymemorandum of lien pursuant to subsection B of § 22.1-151.
(Code 1950, §§ 22-102, 22-115; 1956, c. 184; 1971, Ex. Sess., c. 128; 1980,c. 559; 2007, c. 121; 2008, c. 365.)