{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-1816.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-1816.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-1816.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-1816.html"}],"law_id":69307,"edition_id":1,"section_id":69307,"structure_id":16470,"section_number":"15.2-1816","catch_line":"Power to enter into financing agreements","history":"2011, cc. 562, 660.","full_text":"In addition to other powers granted by law, every local government may, by ordinance, enter into a financing agreement as described in this section and may as part of that financing agreement (i) convey title to any property that is part of a project as defined in this chapter to a conduit or other entity in exchange for consideration provided for under the financing agreement; (ii) assign, pledge to, and create a lien in favor of a conduit or other entity, and permit the conduit or other entity to reassign, pledge to, and create a lien in favor of a private capital funding source, any revenues derived from the project being financed as provided for under the financing agreement; (iii) enter into a lease-leaseback arrangement for a term not to exceed 99 years, under which the private capital funding source will lease from the conduit or other entity, and the conduit or other entity shall lease back from the private capital funding source, the conveyed project. In addition, the conduit or other entity has the power to contribute to the local government any funds received by it in excess of the payments it is required to make to the private capital funding source under the lease-leaseback arrangement and has the power to convey the conveyed property back to the local government when the property is no longer encumbered by any lien or lease in favor of the funding source. The local government and the conduit or other entity may enter into agreements or contracts under which the local government may maintain or administer the conveyed property under the project or may collect rents or fees on behalf of the conduit or other entity. The parties may modify or extend the financing agreement subject to approval by the local government. The local government may enter into a financing agreement under this section either through a competitive selection process or by direct negotiations with a private capital funding source, as determined by the local government or as otherwise provided by law.","order_by":null,"text":{"0":{"id":250701,"text":"In addition to other powers granted by law, every local government may, by ordinance, enter into a financing agreement as described in this section and may as part of that financing agreement (i) convey title to any property that is part of a project as defined in this chapter to a conduit or other entity in exchange for consideration provided for under the financing agreement; (ii) assign, pledge to, and create a lien in favor of a conduit or other entity, and permit the conduit or other entity to reassign, pledge to, and create a lien in favor of a private capital funding source, any revenues derived from the project being financed as provided for under the financing agreement; (iii) enter into a lease-leaseback arrangement for a term not to exceed 99 years, under which the private capital funding source will lease from the conduit or other entity, and the conduit or other entity shall lease back from the private capital funding source, the conveyed project. In addition, the conduit or other entity has the power to contribute to the local government any funds received by it in excess of the payments it is required to make to the private capital funding source under the lease-leaseback arrangement and has the power to convey the conveyed property back to the local government when the property is no longer encumbered by any lien or lease in favor of the funding source. The local government and the conduit or other entity may enter into agreements or contracts under which the local government may maintain or administer the conveyed property under the project or may collect rents or fees on behalf of the conduit or other entity. The parties may modify or extend the financing agreement subject to approval by the local government. The local government may enter into a financing agreement under this section either through a competitive selection process or by direct negotiations with a private capital funding source, as determined by the local government or as otherwise provided by law.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":16470,"edition_id":1,"name":"Local Government Facilities Private Capital Lending","identifier":"18.1","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 04:19:52","date_modified":"2026-06-26 04:19:52","permalink":{"id":154091,"object_type":"structure","relational_id":16470,"identifier":"18.1","token":"15.2\/II\/18.1","url":"\/15.2\/II\/18.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12733,"edition_id":1,"name":"Powers of Local Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12720,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":152369,"object_type":"structure","relational_id":12733,"identifier":"II","token":"15.2\/II","url":"\/15.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12720,"edition_id":1,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":151279,"object_type":"structure","relational_id":12720,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":73572,"structure_id":16470,"section_number":"15.2-1815","catch_line":"Definitions","url":"\/15.2-1815\/","token":"15.2\/II\/18.1\/15.2-1815","metadata":false},{"id":69307,"structure_id":16470,"section_number":"15.2-1816","catch_line":"Power to enter into financing agreements","url":"\/15.2-1816\/","token":"15.2\/II\/18.1\/15.2-1816","metadata":false},{"id":71394,"structure_id":16470,"section_number":"15.2-1817","catch_line":"Real estate taxation","url":"\/15.2-1817\/","token":"15.2\/II\/18.1\/15.2-1817","metadata":false}],"previous_section":{"id":73572,"structure_id":16470,"section_number":"15.2-1815","catch_line":"Definitions","url":"\/15.2-1815\/","token":"15.2\/II\/18.1\/15.2-1815","metadata":false},"next_section":{"id":71394,"structure_id":16470,"section_number":"15.2-1817","catch_line":"Real estate taxation","url":"\/15.2-1817\/","token":"15.2\/II\/18.1\/15.2-1817","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-1816\/","history_text":"

This law was first created in 2011. The record of its establishment is cataloged in chapters 562<\/a> and 660<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":154097,"object_type":"law","relational_id":69307,"identifier":"15.2-1816","token":"15.2\/II\/18.1\/15.2-1816","url":"\/15.2-1816\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-1816\/","token":"15.2\/II\/18.1\/15.2-1816","dublin_core":{"Title":"Power to enter into financing agreements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-1816","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In addition to other powers granted by law<\/span>, every local government<\/span> may, by ordinance<\/span>, enter into a financing agreement as described in this section and may as part of that financing agreement (i) convey title to any property that is part of a project<\/span> as defined in this chapter to a conduit or other entity in exchange for consideration provided for under the financing agreement; (ii) assign, pledge to, and create a lien<\/span> in favor of a conduit or other entity, and permit the conduit or other entity to reassign, pledge to, and create a lien<\/span> in favor of a private capital funding source<\/span>, any revenues derived from the project<\/span> being financed as provided for under the financing agreement; (iii) enter into a lease-leaseback arrangement for a term not to exceed 99 years, under which the private capital funding source<\/span> will lease from the conduit or other entity, and the conduit or other entity shall lease back from the private capital funding source<\/span>, the conveyed project<\/span>. In addition, the conduit or other entity has the power to contribute to the local government<\/span> any funds received by it in excess of the payments it is required to make to the private capital funding source<\/span> under the lease-leaseback arrangement and has the power to convey the conveyed property<\/span> back to the local government<\/span> when the property is no longer encumbered by any lien<\/span> or lease in favor of the funding source. The local government<\/span> and the conduit or other entity may enter into agreements or contracts<\/span> under which the local government<\/span> may maintain or administer the conveyed property<\/span> under the project<\/span> or may collect rents or fees on behalf of the conduit or other entity. The parties may modify or extend the financing agreement subject to approval by the local government<\/span>. The local government<\/span> may enter into a financing agreement under this section either through a competitive selection process or by direct negotiations with a private capital funding source<\/span>, as determined by the local government<\/span> or as otherwise provided by law<\/span>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPOWER TO ENTER INTO FINANCING AGREEMENTS (\u00a7 15.2-1816)\n\nIn addition to other powers granted by law, every local government may, by\nordinance, enter into a financing agreement as described in this section and may\nas part of that financing agreement (i) convey title to any property that is\npart of a project as defined in this chapter to a conduit or other entity in\nexchange for consideration provided for under the financing agreement; (ii)\nassign, pledge to, and create a lien in favor of a conduit or other entity, and\npermit the conduit or other entity to reassign, pledge to, and create a lien in\nfavor of a private capital funding source, any revenues derived from the project\nbeing financed as provided for under the financing agreement; (iii) enter into a\nlease-leaseback arrangement for a term not to exceed 99 years, under which the\nprivate capital funding source will lease from the conduit or other entity, and\nthe conduit or other entity shall lease back from the private capital funding\nsource, the conveyed project. In addition, the conduit or other entity has the\npower to contribute to the local government any funds received by it in excess\nof the payments it is required to make to the private capital funding source\nunder the lease-leaseback arrangement and has the power to convey the conveyed\nproperty back to the local government when the property is no longer encumbered\nby any lien or lease in favor of the funding source. The local government and\nthe conduit or other entity may enter into agreements or contracts under which\nthe local government may maintain or administer the conveyed property under the\nproject or may collect rents or fees on behalf of the conduit or other entity.\nThe parties may modify or extend the financing agreement subject to approval by\nthe local government. The local government may enter into a financing agreement\nunder this section either through a competitive selection process or by direct\nnegotiations with a private capital funding source, as determined by the local\ngovernment or as otherwise provided by law.\n\nHISTORY: 2011, cc. 562, 660.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}