CODE OF VIRGINIA

(EFFECTIVE OCTOBER 1, 2016) OPERATIONS OF MEDICAL CENTER (§ 23.1-2309)

A. The University may provide medical and health sciences education and related
research through teaching hospitals and related health care and health
maintenance facilities, collectively referred to in this section as the Medical
Center. The Medical Center may participate in cooperative arrangements
reflective of changes in health care delivery.

B. The University may create, own in whole or in part, or otherwise control
corporations, partnerships, insurers, or other entities whose activities promote
the operations of the Medical Center and its mission; cooperate or enter into
joint ventures with such entities; and enter into contracts in connection with
such joint ventures. Without limiting the power of the University to issue
bonds, notes, guarantees, or other evidence of indebtedness pursuant to
subsection C in connection with such activities, no such creation, ownership, or
control shall create any responsibility of the University, the Commonwealth, or
any agency of the Commonwealth for the operations or obligations of any entity
or in any way make the University, the Commonwealth, or any agency of the
Commonwealth responsible for the payment of debt or other obligations of such
entity. All such interests shall be reflected on the financial statements of the
Medical Center.

C. Notwithstanding the provisions of Chapter 11 (§ 23.1-1100 et seq.), the
University may issue bonds, notes, guarantees, or other evidence of indebtedness
without the approval of any other governmental body subject to the following
provisions:

   1.  Such debt is used solely for the purpose of paying not more than 50
   percent of the cost of capital improvements in connection with the operation
   of the Medical Center or related issuance costs, reserve funds, and other
   financing expenses, including interest during construction or acquisition and
   for up to one year thereafter.

   2.  No revenues of the University are pledged to the payment of such debt
   except those revenues derived from the operation of the Medical Center and
   related health care and educational activities, and no general fund
   appropriation and special Medicaid disproportionate share payments for
   indigent and medically indigent patients who are not eligible for the Virginia
   Medicaid Program are pledged to the payment of such debt.

   3.  Such debt states that it does not constitute a debt of the Commonwealth or
   a pledge of the faith and credit of the Commonwealth.

   4.  Such debt is not sold to the public.

   5.  The total principal amount of such debt outstanding at any one time does
   not exceed $ 25 million.

   6.  The Treasury Board approves the terms and structure of such debt.

   7.  The purpose, terms, and structure of such debt are promptly communicated
   to the Governor and the Chairmen of the House Appropriations and Senate
   Finance Committees.

   8.  All such indebtedness is reflected on the financial statements of the
   Medical Center.

D. Subject to meeting the conditions set forth in subsection C, such debt may be
in such form and have such terms as the board may provide and shall be in all
respects debt of the University for the purposes of §§ 23.1-1110, 23.1-1115,
and 23.1-1116.

HISTORY: 1994, c. 621, § 23-50.16; 2016, c. 588.