Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 24, 1990 TAG: 9003242366
SECTION: VIRGINIA PAGE: A4 EDITION: METRO
SOURCE: Associated Press
DATELINE: LYNCHBURG LENGTH: Medium
Liberty Chancellor Jerry Falwell said he hopes the ruling by Circuit Judge Mosby Perrow paves the way for other evangelical schools to seek similar funding for building projects.
"Obviously we are very, very pleased," Falwell said at a news conference. He said the court found the bond issue does not constitute state aid.
Falwell testified during a hearing last month that the financing would allow the 18-year-old university to sever its financial dependence on a religious institution, the Old Time Gospel Hour.
Falwell said Liberty's financial independence defused the argument that the city of Lynchburg would be violating the constitutional separation of church and state by lending its credit to the institution so it can get a lower interest rate.
The money will be used to buy from the Old Time Gospel Hour all of the campus' buildings except those expressly used for religious purposes, such as the chapel and the school of religion.
Falwell said the school should have the money in about two months and added that the university will save $2 million or more annually in interest costs.
The bond issue, already approved by City Council and the Industrial Development Authority, was opposed by an Arlington man, who is a staff member on the Free Congress political action committee, and by two Lynchburg men.
An attorney for the opponents, Lewis Stoneburner, said he was disappointed with the outcome and felt the judge's ruling did not fully address the issues presented during the hearing.
by CNB