SUPTS. MEMO. NO. 86
October 1, 1999
|FROM:||Paul D. Stapleton
Superintendent of Public Instruction
|SUBJECT:||Revised Literary Fund Requisition Form|
Attached is the revised Literary Fund Requisition Form (Attachment A). This form must be submitted for all Literary Fund draw requests effective immediately. The revised requisition form incorporates the Tax Questionnaire and Source of Funds Certificate you previously completed prior to your first draw. The requisition form has been changed in response to the July 1, 1999, law requiring school divisions to retain a Bond Counsel to provide an opinion as to the tax status of the Literary Fund loan before the funds for the loan may be disbursed (Attachment B, Section 22.1-157 C., Code of Virginia). I urge you to review the Literary Fund Regulations (Attachment C), especially, Section 8.5 since you will be using these proceeds to reimburse or repay another funding source for work already completed. Pursuant to Section 8.5 of the Regulations, you will be required to adopt a reimbursement resolution. A sample resolution is attached (Attachment D). The resolution must be adopted not later than 60 days after the initial expenditure is paid. In general, a reimbursement from a Literary Fund loan must be made within 18 months of the latter of: *the date the expenditure is paid; or *the date the project is placed in service or abandoned. However, the reimbursement must occur no later than 3 years after the initial expenditure was paid. The ability to conform with Section 8.5 of the Regulations is critical to the tax-exempt status of Literary Loan funds. Please consult with your Bond Counsel for more specific requirements and advice on reimbursing yourself. If you have any questions regarding the revised requisition form or the Literary Fund process, please contact Dan Timberlake, June Eanes, Kent Dickey, or Brian Logwood at (804) 225-2025. PDS/DST:bkl Attachments: A hard copy of this memo and its attachment will be sent to the superintendent's office. .