CODE OF VIRGINIA

AUTHORITY TO ISSUE BONDS (§ 15.2-7214)

The Authority shall have the power to issue bonds from time to time in its
discretion, for any of its purposes, including the payment of all or any part of
the cost of Authority infrastructure and facilities; including the payment or
retirement of bonds previously issued by it and including the costs of the
issuance of such bonds. The Authority may issue such types of bonds as it may
determine, including, without limitation, bonds payable, both as to principal
and interest: (i) from its revenues and receipts generally and (ii) exclusively
from the revenues and receipts of certain designated operations or facilities
whether or not they are financed in whole or in part from the proceeds of such
bonds. Any such bonds may be additionally secured (a) by a pledge of any grant
or contribution from the Commonwealth, or any political subdivision, agency, or
instrumentality thereof, any federal agency or any unit, private corporation,
co-partnership, association, or individual, or other entity, or (b) by mortgage
or encumbrance of any property or facilities of the Authority. Unless otherwise
provided in the proceedings authorizing the issuance of the bonds, or in the
trust indenture securing the same, all bonds shall be payable solely and
exclusively from the revenues and receipts of the Authority. Bonds may be
executed and delivered by the Authority at any time and from time to time, may
be in such form and denominations and of such terms and maturities, may be in
registered, book entry, or bearer form either as to principal or interest or
both, may be payable in such installments and at such time or times, may be
payable at such place or places whether within or without the Commonwealth, may
bear interest at such rate or rates, may be payable at such time or times, and
at such place or places, may be evidenced in such manner, and may contain such
provisions not inconsistent herewith, all as shall be provided and specified by
the Board of Directors in authorizing each particular bond issue including any
designation of an agent or officer of the Authority to establish such provisions
under guidelines established by the Authority.If deemed advisable by the Board
of Directors, there may be retained in the proceedings under which any bonds of
the Authority are authorized to be issued an option to redeem all or any part
thereof as may be specified in such proceedings, at such price or prices and
after such notice or notices and on such terms and conditions as may be set
forth in such proceedings and as may be briefly recited on the face of the
bonds, but nothing herein contained shall be construed to confer on the
Authority any right or option to redeem any bonds except as may be provided in
the proceedings under which they shall be issued. Any bonds of the Authority may
be sold at public or private sale in such manner and from time to time as may be
determined by the Board of Directors of the Authority to be most advantageous,
and the Authority may pay all costs, premiums, and commissions that its Board of
Directors may deem necessary or advantageous in connection with the issuance
thereof. Issuance by the Authority of one or more series of bonds for one or
more purposes shall not preclude it from issuing other bonds in connection with
the same facility or any other facility, but the proceedings whereunder any
subsequent bonds may be issued shall recognize and protect any prior pledge or
mortgage made for any prior issue of bonds. Any bonds of the Authority at any
time outstanding may from time to time be refunded by the Authority by the
issuance of its refunding bonds in such amount as the Board of Directors may
deem necessary, but not exceeding an amount sufficient to refund the principal
of the bonds so to be refunded, together with any unpaid interest thereon and
any costs, including insurance costs, premiums, or commissions necessary to be
paid in connection therewith. Any such refunding may be effected whether the
bonds to be refunded shall have then matured or shall thereafter mature, either
by sale of the refunding bonds and the application of the proceeds thereof to
the payment of the bonds to be refunded thereby, or by the exchange of the
refunding bonds for the bonds to be refunded thereby.All bonds shall be signed
on behalf of the Authority by the chairman or vice-chairman of the Authority, or
shall bear the facsimile signature of such officer, and shall bear the official
seal of the Authority, or a facsimile thereof shall be impressed or imprinted
thereon and shall be attested to by the manual or facsimile signature of the
secretary (or the secretary-treasurer) or assistant secretary (or assistant
secretary-treasurer) of the Authority. Any coupons attached thereto shall bear
the signature or facsimile signature of such chairman. In case any officer whose
signature or a facsimile of whose signature appears on any bonds or coupons
shall cease to be such officer before the delivery of such bonds, such signature
or facsimile signature nevertheless shall be valid and sufficient for all
purposes as if such officer had remained in office until such delivery. When the
signatures of both the chairman or the vice-chairman and the secretary (or the
secretary-treasurer) or the assistant secretary (or the assistant
secretary-treasurer) are facsimiles, the bonds must be authenticated by a
corporate trustee or other authenticating agent approved by the Authority.If the
proceeds derived from a particular bond issue, due to error of estimates or
otherwise, shall be less than the cost of the Authority facilities or
infrastructure for which such bonds were issued, additional bonds may in like
manner be issued to provide the amount of such deficit, and, unless otherwise
provided in the proceedings authorizing the issuance of the bonds of such issue
or in the trust indenture securing the same, shall be deemed to be of the same
issue and shall be entitled to payment from the same fund without preference or
priority of the bonds of the first issue. If the proceeds of the bonds of any
issue shall exceed such cost, the surplus may be deposited to the credit of the
sinking fund for such bonds or may be applied to the payment of the cost of any
additions, improvements, or enlargements of the Authority facilities or
infrastructure for which such bonds shall have been issued.Prior to the
preparation of definitive bonds, the Authority may, under like restrictions,
issue interim receipts or temporary bonds with or without coupons, exchangeable
for definitive bonds when such bonds shall have been executed and are available
for delivery. The Authority may also provide for the replacement of any bonds
that shall become mutilated or shall be destroyed or lost. Bonds may be issued
under the provisions of this chapter without obtaining the consent of any
department, division, commission, board, bureau, or agency of the Commonwealth,
and without any other proceedings or the happening of any other conditions or
things other than those proceedings, conditions, or things that are specifically
required by this chapter.All bonds issued under the provisions of this chapter
shall have and are hereby declared to have all the qualities and incidents of
and shall be and are hereby made negotiable instruments under the Uniform
Commercial Code of Virginia (§ 8.1A-101 et seq.), subject only to provisions
respecting registration of the bonds.The interest income from and any profit
made on the sale of the obligations issued under the provisions of this Act
shall at all times be free and exempt from taxation by the Commonwealth and by
any municipality, county, or other political subdivision thereof.

HISTORY: 2010, cc. 117, 210.