CODE OF VIRGINIA

BONDS NOT DEBTS OF COMMONWEALTH OR PARTICIPATING POLITICAL SUBDIVISION (§
15.2-5131)

A. Revenue bonds issued under the provisions of this chapter shall not
constitute a pledge of the faith and credit of the Commonwealth or of any
political subdivision. All bonds shall contain a statement on their face
substantially to the effect that neither the faith and credit of the
Commonwealth nor the faith and credit of any political subdivision are pledged
to the payment of the principal of or the interest on the bonds. The issuance of
revenue bonds under the provisions of this chapter shall not directly or
indirectly or contingently obligate the Commonwealth or any political
subdivision to levy any taxes or to make any appropriation for their payment
except from the funds pledged under the provisions of this chapter.

B. Unless otherwise provided in the ordinance which forms the authority or in a
subsequent ordinance or resolution authorizing additional improvements, neither
the Commonwealth nor any locality shall pay any part of the principal or
interest of any bonds issued by a community development authority formed
pursuant to §§ 15.2-5152 through 15.2-5157, nor shall any locality carry any
part of such bonds on its financial statements as a contingent obligation;
except that if a community development authority fails to pay such bonds, to the
extent that a locality has imposed a real property tax surcharge or a special
assessment at the request of a community development authority pursuant to
subdivisions A 3 or A 5 of § 15.2-5158, funds collected from such sources may
be paid against such debt.

C. Debt issued by a community development authority formed pursuant to §§
15.2-5152 through 15.2-5157 shall not be considered in determining the debt
limit of any locality.

HISTORY: Code 1950, § 15-764.19; 1950, p. 1323; 1962, c. 623, § 15.1-1257;
1997, cc. 363, 587.