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Religious Institution May Use State Bond Program
The Virginia Supreme Court ruled in November that Regent University, a Christian institution, is eligible to participate in a state-run bond program that provides loans to private colleges for building expenses. The program is administered by the Virginia College Building Authority (VCBA), which issues tax-free bonds and lends the proceeds to qualified colleges and universities. The enabling legislation behind VCBA says that state entities may assist nonprofit institutions of higher education "whose primary purpose is to provide collegiate or graduate education and not to provide religious training or theological education." Regent University offers primarily graduate programs.
The university, which was founded by televangelist Pat Robertson and is largely controlled by the Christian Broadcasting Network, applied for and was awarded building funds, but the award was challenged in the lower courts. The Virginia Supreme Court’s ruling finds that Regent University is pervasively sectarian but that, with the exception of the divinity school, the institution’s primary purpose is not to provide religious training or theological education. The institution is therefore eligible to participate in the bond program.
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