University of Virginia Library

1820-21.

The only legislation this year was Chapter IX. entitled "An Act

concerning the University of Virginia". Passed Fabruary 24, 1821.
See p. 15 of the Acts. It follows:

"1. Be it enacted by the General Assembly, That, out of such
money as shall hereafter be received by the president and directors
of the literary fund, from the government of the United States,
or out of such other money as may be at the disposal of the said
president and directors, and not otherwise appropriated by law, there
shall be loaned by the said president and directors, to the rector and
visitors of the University of Virginia, for the purpose of completing
the buildings and making the necessary preparations for putting
the said university into operation, any sum which may be required by
the said rector and visitors, not exceeding sixty thousand dollars,
at an interest of six per centum per annum, to be paid out of the
annual appropriation heretofore made by law for the endowment of
the said university: Provided, always, That nothing herein contained
shall be so construed as to affect the appropriations made or
intended to be made, for the support of primary schools.

2. Be it further enacted, That, if there shall not be sufficient
funds, at the disposal of the said president and directors, to make
the loan hereby authorized, it shall be lawful for the said rector
and visitors to borrow, within the limit aforesaid, from any person,
body politic or corporate, for the purpose aforesaid, any sum which
they may deem expedient, at an interest not exceeding six per centum
per annum, payable out of the appropriation aforesaid, and to
pledge, for the redemption of the principal of such loan, the surplus
of the said appropriation, over and above what may be necessary
to pay the interest upon loans negotiated by them. And it shall be
lawful for any of the banks within this commonwealth to lend to
the said rector and visitors, upon the terms and conditions herein
prescribed, the whole, or any part of the money which they are
hereby authorized to borrow: Provided, That the said rector and
visitors shall not be authorized, in virtue of this act, to borrow
more than the aforesaid sum of sixty thousand dollars.

3. Be it further enacted, That the payment of the principal
sum of money heretofore loaned by the president and directors of
the literary fund, to the rector and visitors of the university, shall
be deferred, if the said rector and visitors require it, until the same
shall become payable pursuant to the provisions of this act: Pro-

vided, however, That the interest thereon shall be annually paid out
of the appropriation aforesaid.

4. Be it further enacted, That the surplus of the said annual
appropriation made for the endowment of the university, over and
above what may be necessary for payment of the interest on loans
already made to them, and the loan or loans that may be negotiated
under this act, shall be, and the same are hereby pledged, for the
redemption of the principal sums loaned and to be loaned as aforesaid,
after the following manner, that is to say: first, for the redemption
of the principal sum or sums which may be borrowed of
any person, body politic or corporate, other than the president and
directors of the literary fund, in such manner as shall have been
agreed upon between the lender and the said rector and visitors;
and next, for the redemption of the principal sum borrowed and
to be borrowed of the said president and directors, in such manner
as the legislature may hereafter prescribe: Provided, That nothing
in this act contained, shall be so construed as to pledge the faith of
this state to the payment of any sum or sums of money, other than
the fifteen thousand dollars annually appropriated to the university.

5. Be it further enacted, That whenever the annual income of
the literary fund shall exceed sixty thousand dollars, the surplus
above that sum, until such surplus shall amount to twenty thousand
dollars, shall be appropriated, and the same is hereby appropriated,
to the endowment of such colleges, academies, or intermediate
schools, within this Commonwealth, as the General Assembly
may hereafter designate as fit institutions for such endowment.

6. All acts and parts of acts, coming within the purview of this
act, shall be, and the same are hereby repealed.

7. This act shall commence and be in force from and after
the passing thereof." Acts 1820-21, pp. 15 & 16. Appears as
Chap. 30, Rev. Code 1819. p. 44 Supt., Chap. 17. p. 32.