CODE OF VIRGINIA

(REPEALED EFFECTIVE OCTOBER 1, 2016) BONDS OF AUTHORITY GENERALLY (§ 23-30.28)

In order to provide funds for the purchase of educational institution bonds as
authorized by § 23-30.27, to provide funds for the acquisition of equipment as
authorized by § 23-30.27:1, to provide funds for the reimbursement of the
Central Capital Planning Fund, established under § 2.2-1520, for payments made
for pre-planning or detailed planning of all projects that have been approved
for construction by the General Assembly, and to provide funds for the purpose
of paying all or any part of the cost of any one or more projects or of any
portion or portions thereof, the Authority is hereby authorized to provide by
resolution, at one time or from time to time, for the issuance of bonds of the
Authority in such amount or amounts as the Authority shall determine. Such bonds
of the Authority shall be payable solely from funds of the Authority, including,
but without limitation, any one or more of the following: (i) payments of
principal of and interest on educational institution bonds purchased by the
Authority, (ii) the proceeds of the sale of any such educational institution
bonds, (iii) payments of principal of and interest on obligations transferred to
the Authority by the General Assembly or from other assets or moneys transferred
to the Authority by the General Assembly or educational institutions, including
lease payments or any other source of revenue, (iv) the proceeds of the sale of
any such obligations or assets, (v) the proceeds from the sale of bonds of the
Authority, (vi) payments made by educational institutions under leases or sales
of equipment by the Authority, (vii) funds realized from the enforcement of
security interests or other liens securing such bonds, (viii) payments due under
letters of credit, policies of bond insurance, bond purchase agreements or other
credit enhancements securing payment of principal of and interest on bonds of
the Authority, (ix) any moneys held in funds established by the Authority
pursuant to § 23-30.27:1, (x) any reserve or sinking funds created to secure
such payment, and (xi) other available funds of the Authority. Bonds of the
Authority issued under the provisions of this chapter shall not be deemed to
constitute a debt of the Commonwealth or a pledge of the faith or credit of the
Commonwealth and all bonds of the Authority shall contain on the face thereof a
statement to the effect that neither the faith and credit, nor the taxing power
of the Commonwealth or of any political subdivision thereof is, or shall be,
pledged to the payment of the principal of or the interest on such bonds.The
bonds of each issue shall be dated, shall mature at such time or times, not
exceeding 40 years from their date or dates, as may be determined by the
Authority, and may be made redeemable before maturity, at the option of the
Authority, at such price or prices and under such terms and conditions as may be
fixed by the Authority prior to the issuance of the bonds. The bonds may bear
interest payable at such time or times and at such rate or rates as determined
by the Authority or as determined in such manner as the Authority may provide,
including the determination by agents designated by the Authority under
guidelines established by it. The principal and interest of such bonds may be
made payable in any lawful medium. The Authority shall determine the form of the
bonds and the manner of execution of the bonds, and shall fix the denomination
or denominations of the bonds and the place or places of payment of principal
and interest thereof, which may be at the office of the State Treasurer or at
any bank or trust company within or without the Commonwealth. In case any
officer whose signature or a facsimile of whose signature shall appear on any
bonds or coupons shall cease to be such officer before the delivery of such
bonds such signature or such facsimile shall nevertheless be valid and
sufficient for all purposes the same as if he had remained in office until such
delivery. All revenue bonds issued under the provisions of this chapter (other
than bonds registered as to principal or in registered form) shall have and are
hereby declared to have, as between successive holders, all the qualities and
incidents of negotiable instruments under the law of this Commonwealth. The
bonds shall be in such form, shall bear interest at such rate or rates, either
fixed rates or rates established by formula or other method, and may contain
such other provisions, all as the Authority may determine. The principal of and
premium, if any, and interest on the bonds shall be payable in lawful money of
the United States of America. The Authority shall fix the denomination or
denominations of the bonds and place or places of payments of principal,
premium, if any, and interest at any one or more banks or trust companies within
or without the Commonwealth.Bonds may be issued under a system of book entry for
recording the ownership and transfer of ownership of rights to receive payments
of principal of and premium, if any, and interest on the bonds.The Authority may
sell such bonds in such manner, either at public or private sale, and for such
price as it may determine to be in the best interests of the Authority. The
proceeds of such bonds shall be disbursed for the purposes for which such bonds
shall have been issued under such restrictions, if any, as the resolution
authorizing the issuance of such bonds or the trust indenture hereinafter
mentioned may provide. Prior to the preparation of definitive bonds, the
Authority may under like restrictions issue 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 bond which shall become mutilated or shall be destroyed or
lost. Such revenue bonds may be issued without any other proceedings or the
happening of any other conditions or things than the proceedings, conditions,
and things which are specified and required by this chapter.Neither the members
of the Authority nor any person executing any bonds issued under the provisions
of this chapter shall be liable personally on such bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.No
project for an institution listed in § 23-14 shall be undertaken by the
Authority if such project was not specifically included in a bill passed by a
majority of those elected to each house of the General Assembly, authorizing
such project or projects. In addition, any such project to be financed by bonds
issued by the Authority secured by a pledge of any one or more of the revenue
sources cited in subdivisions (1) through (4) of subsection (d) of § 23-19
shall have been designated by the institution’s board of visitors as a
project to be undertaken by the Authority.

HISTORY: 1964, c. 607; 1966, c. 685; 1986, c. 597; 1994, cc. 191, 219; 1996, cc.
672, 689; 2000, cc. 414, 445; 2004, c. 711; 2008, Sp. Sess. I, cc. 1, 2.