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HABEL v. INDUSTRIAL DEV. AUTHORITY

Record Nos. 900482, 900498.

400 S.E.2d 516 (1991)

Nathanael B. HABEL, et al. v. INDUSTRIAL DEVELOPMENT AUTHORITY OF the CITY OF LYNCHBURG. Lewis T. STONEBURNER, Guardian Ad Litem, etc. v. INDUSTRIAL DEVELOPMENT AUTHORITY OF the CITY OF LYNCHBURG.

Supreme Court of Virginia.

January 11, 1991.

Attorney(s) appearing for the Case

Lewis T. Stoneburner (E. Olen Culler, Thomas J. Schilling, Press, Culler, Jones, Waechter & Stoneburner, Richmond, on brief), for appellant Habel, et al.

Benjamin T. Riddles, II (Vivian Katsantonis, Watt, Tieder, Killian & Hoffar, McLean, on brief), for appellants Stoneburner, etc.

John E. Hubbard (Michael G. Connery, Omaha, Neb., Theordore J. Craddock, Lynchburg, Kutak, Rock & Campbell, Omaha, Neb., Caskie & Frost, Lynchburg, on brief), for appellee.

Present: All the Justices.

WHITING, Justice.

In this proceeding to validate a political subdivision's proposed bond issue to benefit an educational institution, the principal inquiry is whether the bond issue would violate the Establishment of Religion Clause of either the United States or Virginia Constitution. To decide this issue, we must consider whether the educational institution's activities are "pervasively sectarian."

In October 1989, "as a prerequisite to obtaining federal...

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