CODE OF VIRGINIA

DISSOLUTION AND TERMINATION OF AUTHORITY (§ 15.2-5109)

Whenever the board of an authority determines that the purposes for which it was
created have been completed or are impractical or impossible or that its
functions have been taken over by one or more political subdivisions and that
all its obligations have been paid or have been assumed by one or more of such
political subdivisions or any authority created thereby or that cash or United
States government securities have been deposited for their payment, it shall
adopt and file with the governing body of each political subdivision which is a
member of the authority a resolution declaring such facts. If all the governing
bodies adopt resolutions concurring in such declaration and finding that the
authority should be dissolved, they shall file appropriate articles of
dissolution with the State Corporation Commission. When the affairs of the
authority have been wound up and all of its assets have been distributed, the
governing bodies shall file appropriate articles of termination of corporate
existence with the State Corporation Commission.If any of the governing bodies
refuse to adopt resolutions concurring in such declaration, then the authority
may petition the circuit court for any locality which is a member of the
authority to order one or more of such governing bodies to create a new
authority. The circuit court may order the governing body of the political
subdivision requesting dissolution of the existing authority to adopt an
ordinance establishing a new authority to which the provisions of §§ 15.2-5102
through 15.2-5106 shall not apply. Thereafter, the court may order that the
assets be divided among the authorities and, subject to the approval of any debt
holder, require the assumption of a proportionate share of the obligations of
the existing authority by the new authority.Notwithstanding the provisions of
subdivision 1 of § 15.2-5114, an authority shall continue in existence and
shall not be dissolved because the term for which it was created, including any
extensions thereof, has expired, unless all of such authority’s functions
have been taken over and its obligations have been paid or have been assumed by
one or more political subdivisions or by an authority created thereby, or cash
or United States government securities have been deposited for their payment.

HISTORY: 1970, c. 617, § 15.1-1269.1; 1982, c. 662; 1997, c. 587; 2009, c. 216.