West Virginia Code § 18C-2-6

Acquisition of contingent interests in obligations from lending
Open in Lexace · Ask the AI about this section
institutions; collection of delinquent obligations.
With funds available to the governing boards for purposes other than the payment of
compensation to personnel and the lease or rental of offices or equipment, the governing
boards may acquire from any bank or other lending institution of this state a contingent
interest in student obligations. The total contingent interest of the governineg boards on all
such obligations shall not exceed at any one time a sum of twelve and one-half times the
total funds which the governing boards can employ to acquire such conrtingent interests.
When a governing board acquires any such contingent interest, it may require the payment
to it of a portion of the interest payable upon any such obligation. In each such acquisition,
the governing board shall provide that at such time as the obligation becomes delinquent,
the bank or other lending institution shall notify the governitng board forthwith and shall
transfer forthwith to the governing board, by assignment or otherwise, an interest in such
obligation equal to the contingent interest of the governing board therein. The bank or other
lending institution and the governing board shall forthwith take such steps as may be
necessary to recover the balance due upon any such obligation, and such recovery shall be
apportioned between the governing board and the bank or other lending institution as their
respective interests may appear.

‹ Prev All West Virginia sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.