22.1-232 - Contracts. - Virginia Statutes

§ 22.1-232. Contracts.

A. Where a school board undertakes a career and technical education projectby contract with a corporation, the school board may advance, contribute andloan 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 beallocated between the school board and the corporation;

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

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

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

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

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

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

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