CODE OF VIRGINIA

(EFFECTIVE OCTOBER 1, 2016) POWERS; ISSUANCE OF REVENUE BONDS (§ 23.1-1227)

A. The Authority may issue revenue bonds for any corporate purpose, and all such
revenue bonds, notes, bond anticipation notes, or other obligations of the
Authority issued pursuant to this article are negotiable for all purposes,
notwithstanding their payment from a limited source and without regard to any
other law.

B. In anticipation of the sale of such revenue bonds, the Authority may issue
and renew negotiable bond anticipation notes, but the maximum maturity of any
such note, including renewals, shall not exceed five years from the date on
which the original note was issued. Such notes shall be paid from any revenues
of the Authority available for such purpose and not otherwise pledged or from
the proceeds of sale of the Authority’s revenue bonds issued in
anticipation of such sale. Such notes shall be issued in the same manner as the
revenue bonds. Such notes and the resolution authorizing such notes may contain
any provisions, conditions, or limitations that the Authority may include in a
bond resolution.

C. The revenue bonds and notes of every issue are payable solely out of revenues
to the Authority, subject only to any agreement with (i) the holders of
particular revenue bonds or notes to pledge any particular revenues or (ii) any
participating institution.

D. Revenue bonds and notes are negotiable instruments that are subject only to
the provisions of the revenue bonds and notes for registration but may be
payable from a special fund.

E. Revenue bonds may be issued as serial bonds, term bonds, or both. Revenue
bonds shall be authorized by resolution of the members of the Authority and bear
such date, mature at such time, not exceeding 50 years from such date, bear
interest at such rate or rates that is payable at such time, be in such
denomination, be in such form, either coupon or registered, carry such
registration privileges, be executed in such manner, be payable in lawful United
States currency at such place, and be subject to such terms of redemption as
such resolution provides. Revenue bonds or notes may be sold at public or
private sale for such price or prices as the Authority determines. Pending
preparation of the definitive bonds, the Authority may issue interim receipts or
certificates that shall be exchanged for such definitive bonds.

F. Any resolution authorizing revenue bonds or any issue of revenue bonds may
contain provisions, which shall be a part of the contract with the holders of
such revenue bonds, relating to:

   1.  Pledging all or any part of the revenues of a project, to any
   revenue-producing contract made by the Authority with any individual,
   partnership, corporation, association, or other public or private body to
   secure the payment of the revenue bonds or any particular issue of revenue
   bonds, subject to any existing agreements with bondholders;

   2.  Charging rentals, fees, and other charges and setting forth the amounts to
   be raised annually with such charges and the use and disposition of the
   revenues;

   3.  Establishing, setting aside, regulating, and disposing of reserves or
   sinking funds;

   4.  Limiting the right of the Authority or its agent to restrict and regulate
   the use of the project;

   5.  Limiting the purpose to which the proceeds of the sale of any issue of
   revenue bonds to be issued may be applied and pledging such proceeds to secure
   the payment of the revenue bonds or any issue of the revenue bonds;

   6.  Limiting the issuance of additional bonds, the terms upon which additional
   bonds may be issued and secured, and the refunding of outstanding bonds;

   7.  Establishing a procedure by which the terms of any contract with
   bondholders may be amended or abrogated that includes the number of
   bondholders required to consent to such amendment or abrogation and the manner
   in which such consent may be given;

   8.  Limiting the amount of moneys derived from the project to be expended for
   operating, administrative, or other expenses of the Authority;

   9.  Defining the acts or omissions that constitute a default in the duties of
   the Authority to holders of its obligations and providing the rights and
   remedies of such holders in the event of a default;

   10.  Setting forth the duties, obligations, and liabilities of any trustee or
   paying agent; and

   11.  Mortgaging a project and the site of such project for the purpose of
   securing the bondholders.

G. Neither the members of the Authority nor any person executing revenue bonds
or notes is liable personally on the revenue bonds or notes or is subject to any
personal liability or accountability by reason of the issuance of such revenue
bonds or notes.

H. The Authority may purchase its bonds or notes with funds available for such
purpose. The Authority may hold, pledge, cancel, or resell such bonds or notes
subject to and in accordance with agreements with bondholders.

HISTORY: 1972, c. 686, § 23-30.47; 2016, c. 588.