CODE OF VIRGINIA

CREDIT OF COMMONWEALTH NOT PLEDGED (§ 33.2-1709)

A. Commonwealth of Virginia Toll Revenue Bonds issued under the provisions of
this chapter shall not be deemed to constitute a debt of the Commonwealth or a
pledge of the full faith and credit of the Commonwealth, but such bonds shall be
payable solely from the funds provided therefor from tolls and revenues pursuant
to this chapter, from bond proceeds or earnings thereon, and from any other
available sources of funds. All such bonds shall state on their face that the
Commonwealth is not obligated to pay the same or the interest thereon except
from the special fund provided therefor from tolls and revenues under this
chapter, from bond proceeds or earnings thereon, and from any other available
sources of funds, and that the full faith and credit of the Commonwealth are not
pledged to the payment of the principal or interest of such bonds. The issuance
of such revenue bonds under the provisions of this chapter shall not directly or
indirectly or contingently obligate the Commonwealth to levy or to pledge any
form of taxation whatever therefor or to make any appropriation for their
payment, other than appropriate available funds derived as revenues from tolls
and charges under this chapter or derived from bond proceeds or earnings thereon
and from any other available sources of funds.

B. Commonwealth of Virginia Transportation Contract Revenue Bonds issued under
the provisions of this chapter shall not be deemed to constitute a debt of the
Commonwealth or a pledge of the full faith and credit of the Commonwealth, but
such bonds shall be payable solely from the funds provided therefor pursuant to
this chapter (i) from revenues received pursuant to contracts with a primary
highway transportation district or transportation service district or any other
alternative mechanism for generation of local revenues for specific funding of a
project satisfactory to the Board; (ii) to the extent required, from funds
appropriated and allocated, pursuant to the highway allocation formula as
provided by law, to the highway construction district in which the project to be
financed is located or to the county or counties in which such project is
located; (iii) from bond proceeds or earnings thereon; (iv) to the extent
required, from other legally available revenues of the Transportation Trust
Fund; and (v) from any other available source of funds. All such bonds shall
state on their face that the Commonwealth is not obligated to pay the same or
the interest thereon except from revenues in clauses (i) and (iii) and that the
full faith and credit of the Commonwealth are not pledged to the payment of the
principal and interest of such bonds. The issuance of such revenue bonds under
the provisions of this chapter shall not directly or indirectly or contingently
obligate the Commonwealth to levy or to pledge any form of taxation whatever or
to make any appropriation for their payment, other than to appropriate available
funds derived as revenues under this chapter from the sources set forth in
clauses (i) and (iii). Nothing in this chapter shall be construed to obligate
the General Assembly to make any appropriation of the funds set forth in clause
(ii) or (iv) for payment of such bonds.

C. Commonwealth of Virginia Transportation Revenue Bonds issued under the
provisions of this chapter shall not be deemed to constitute a debt of the
Commonwealth or a pledge of the full faith and credit of the Commonwealth, but
such bonds shall be payable solely from the funds provided therefor pursuant to
this chapter (i) from revenues received from the U.S. Route 58 Corridor
Development Fund established pursuant to § 33.2-2300, subject to their
appropriation by the General Assembly; (ii) to the extent required, from
revenues legally available from the Transportation Trust Fund; and (iii) to the
extent required, from any other legally available funds that may be appropriated
by the General Assembly.

D. Commonwealth of Virginia Transportation Revenue Bonds issued under this
chapter for Category 1 projects as provided in subdivision 12 of the definition
of “project” in § 33.2-1700 shall not be deemed to constitute a
debt of the Commonwealth or a pledge of the full faith and credit of the
Commonwealth. Such bonds shall be payable solely, subject to their appropriation
by the General Assembly, (i) first from revenues received from the Northern
Virginia Transportation District Fund established pursuant to § 33.2-2400; (ii)
to the extent required, from funds appropriated and allocated, pursuant to the
highway allocation formula as provided by law, to the highway construction
district in which the project to be financed is located or to the city or county
in which the project to be financed is located; (iii) to the extent required,
from legally available revenues of the Transportation Trust Fund; and (iv) from
such other funds that may be appropriated by the General Assembly.

E. Commonwealth of Virginia Transportation Program Revenue Bonds issued under
this chapter for projects defined in subdivision 13 of the definition of
“project” in § 33.2-1700 shall not be deemed to constitute a debt
of the Commonwealth or a pledge of the full faith and credit of the
Commonwealth. Such bonds shall be payable solely, subject to their appropriation
by the General Assembly, (i) first from any revenues received from any Set-aside
Fund established by the General Assembly pursuant to § 58.1-816.1; (ii) to the
extent required, from revenues received pursuant to any contract with a locality
or any alternative mechanism for generation of local revenues for specific
funding of a project satisfactory to the Board; (iii) to the extent required,
from funds appropriated and allocated, pursuant to the highway allocation
formula as provided by law, to the highway construction district in which the
project to be financed is located or to the city or county in which the project
to be financed is located; (iv) to the extent required, from legally available
revenues from the Transportation Trust Fund; and (v) from such other funds that
may be appropriated by the General Assembly.

F. Commonwealth of Virginia Federal Highway Reimbursement Anticipation Notes
issued under this chapter shall not be deemed to constitute a debt of the
Commonwealth or a pledge of the full faith and credit of the Commonwealth, but
such obligations shall be payable solely, subject to appropriation by the
General Assembly, (i) first from any federal highway reimbursements and any
other federal highway assistance received by the Commonwealth; (ii) then, at the
discretion of the Board, to the extent required, from legally available revenues
of the Transportation Trust Fund; and (iii) then, from such other funds, if any,
that are designated by the General Assembly for such purpose.

G. Commonwealth of Virginia Transportation Credit Assistance Revenue Bonds
issued under the provisions of this chapter shall not be deemed to constitute a
debt of the Commonwealth or a pledge of the full faith and credit of the
Commonwealth, but such obligations shall be payable solely, subject to
appropriation by the General Assembly, from revenues with respect to or
generated by the project being financed thereby and any tolls or other revenues
pledged by the Board as security therefor and in accordance with the applicable
federal credit assistance authorized with respect to such project by the U.S.
Department of Transportation.

H. Commonwealth of Virginia Transportation Capital Projects Revenue Bonds issued
under the provisions of this chapter for projects as provided in subdivision 15
of the definition of “project” in § 33.2-1700 shall not be deemed
to constitute a debt of the Commonwealth or a pledge of the full faith and
credit of the Commonwealth, but such bonds shall be payable solely, subject to
their appropriation by the General Assembly, (i) from the revenues deposited
into the Priority Transportation Fund established pursuant to § 33.2-1527; (ii)
to the extent required, from revenues legally available from the Transportation
Trust Fund; and (iii) to the extent required, from any other legally available
funds.

I. Commonwealth of Virginia Federal Transportation Grant Anticipation Revenue
Notes issued under the provisions of Article 4 (§ 33.2-1511 et seq.) of Chapter
15 and this chapter shall not be deemed to constitute a debt of the Commonwealth
or a pledge of the full faith and credit of the Commonwealth, but such notes
shall be payable solely, subject to their appropriation by the General Assembly,
(i) first from the project-specific reimbursements pursuant to § 33.2-1520;
(ii) then, at the discretion of the Board, to the extent required, from legally
available revenues of the Transportation Trust Fund; and (iii) then from such
other funds, if any, that are designated by the General Assembly for such
purpose.

HISTORY: Code 1950, § 33-237; 1970, c. 322, § 33.1-277; 1982, c. 403; 1986,
Sp. Sess., c. 13; 1988, cc. 844, 903; 1989, Sp. Sess., cc. 9, 11; 1990, c. 710;
1991, cc. 666, 713; 1993, cc. 391, 793; 1994, cc. 233, 520, 589, 662; 1995, c.
354; 2000, cc. 1019, 1044; 2004, c. 807; 2007, c. 896; 2011, cc. 830, 868; 2014,
c. 805.