P. O. BOX 2120

October 1, 1999


TO: Division Superintendents
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 

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.

Attachments:    A hard copy of this memo and its attachment
                will be sent to the superintendent's office.