{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2424.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2424.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2424.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2424.html"}],"law_id":73012,"edition_id":1,"section_id":73012,"structure_id":14690,"section_number":"15.2-2424","catch_line":"Loans to local governments","history":"2009, c. 131.","full_text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments to finance or refinance the cost of any project. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of indebtedness to be refinanced plus reasonable financing expenses.\n\t\tThe Authority shall determine the terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions, and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:\n\n1\n\nEstablish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal and premium, if any, and interest on the loan from the Fund to the local government; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges;2\n\nLevy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal and premium, if any, and interest on the loan from the Fund to the local government;3\n\nCreate and maintain a special fund or funds for the payment of the principal and premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable;4\n\nCreate and maintain other special funds as required by the Authority; and5\n\nPerform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund, or to take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal and premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit, and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects, undertakings, facilities, utilities, and systems to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings, and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government subject to the guidelines adopted by the Board.","order_by":null,"text":{"0":{"id":262935,"text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments to finance or refinance the cost of any project. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of indebtedness to be refinanced plus reasonable financing expenses.\n\t\tThe Authority shall determine the terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions, and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":262936,"text":"Establish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal and premium, if any, and interest on the loan from the Fund to the local government; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":262937,"text":"Levy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal and premium, if any, and interest on the loan from the Fund to the local government;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":262938,"text":"Create and maintain a special fund or funds for the payment of the principal and premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":262939,"text":"Create and maintain other special funds as required by the Authority; and","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":262940,"text":"Perform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund, or to take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal and premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit, and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects, undertakings, facilities, utilities, and systems to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings, and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government subject to the guidelines adopted by the Board.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":14690,"edition_id":1,"name":"Virginia Broadband Infrastructure Loan Fund","identifier":"24.2","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 03:49:22","date_modified":"2026-06-26 03:49:22","permalink":{"id":155781,"object_type":"structure","relational_id":14690,"identifier":"24.2","token":"15.2\/II\/24.2","url":"\/15.2\/II\/24.2\/","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":58955,"structure_id":14690,"section_number":"15.2-2419","catch_line":"Definitions","url":"\/15.2-2419\/","token":"15.2\/II\/24.2\/15.2-2419","metadata":false},{"id":85352,"structure_id":14690,"section_number":"15.2-2420","catch_line":"Creation and management of Fund","url":"\/15.2-2420\/","token":"15.2\/II\/24.2\/15.2-2420","metadata":false},{"id":67282,"structure_id":14690,"section_number":"15.2-2421","catch_line":"Deposit of money; expenditures; investments","url":"\/15.2-2421\/","token":"15.2\/II\/24.2\/15.2-2421","metadata":false},{"id":80985,"structure_id":14690,"section_number":"15.2-2422","catch_line":"Annual audit","url":"\/15.2-2422\/","token":"15.2\/II\/24.2\/15.2-2422","metadata":false},{"id":56328,"structure_id":14690,"section_number":"15.2-2423","catch_line":"Collection of money due Fund","url":"\/15.2-2423\/","token":"15.2\/II\/24.2\/15.2-2423","metadata":false},{"id":73012,"structure_id":14690,"section_number":"15.2-2424","catch_line":"Loans to local governments","url":"\/15.2-2424\/","token":"15.2\/II\/24.2\/15.2-2424","metadata":false},{"id":85830,"structure_id":14690,"section_number":"15.2-2425","catch_line":"Prioritization of loans","url":"\/15.2-2425\/","token":"15.2\/II\/24.2\/15.2-2425","metadata":false},{"id":81186,"structure_id":14690,"section_number":"15.2-2426","catch_line":"Pledge of loans to secure bonds of Authority","url":"\/15.2-2426\/","token":"15.2\/II\/24.2\/15.2-2426","metadata":false},{"id":63453,"structure_id":14690,"section_number":"15.2-2427","catch_line":"Sale of loans","url":"\/15.2-2427\/","token":"15.2\/II\/24.2\/15.2-2427","metadata":false},{"id":84360,"structure_id":14690,"section_number":"15.2-2428","catch_line":"Powers of the Authority","url":"\/15.2-2428\/","token":"15.2\/II\/24.2\/15.2-2428","metadata":false},{"id":71602,"structure_id":14690,"section_number":"15.2-2429","catch_line":"Liberal construction of chapter","url":"\/15.2-2429\/","token":"15.2\/II\/24.2\/15.2-2429","metadata":false}],"previous_section":{"id":56328,"structure_id":14690,"section_number":"15.2-2423","catch_line":"Collection of money due Fund","url":"\/15.2-2423\/","token":"15.2\/II\/24.2\/15.2-2423","metadata":false},"next_section":{"id":85830,"structure_id":14690,"section_number":"15.2-2425","catch_line":"Prioritization of loans","url":"\/15.2-2425\/","token":"15.2\/II\/24.2\/15.2-2425","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2424\/","history_text":"

This law was first created in 2009. The record of its establishment is cataloged in chapter 131<\/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":155803,"object_type":"law","relational_id":73012,"identifier":"15.2-2424","token":"15.2\/II\/24.2\/15.2-2424","url":"\/15.2-2424\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2424\/","token":"15.2\/II\/24.2\/15.2-2424","dublin_core":{"Title":"Loans to local governments","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2424","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Except as otherwise provided in this chapter, money in the Fund<\/span> shall be used solely to make loans to local governments<\/span> to finance or refinance the cost of any project<\/span>. No loan from the Fund<\/span> shall exceed the total cost of the project<\/span> to be financed or the outstanding principal amount of indebtedness to be refinanced plus reasonable financing expenses.\n\t\tThe Authority<\/span> shall determine the terms and conditions of any loan from the Fund<\/span>, which may vary between local governments<\/span>. Each loan shall be evidenced by appropriate bonds<\/span> or notes of the local government<\/span> payable to the Fund<\/span>. The bonds<\/span> or notes shall have been duly authorized by the local government<\/span> and executed by its authorized legal representatives. The Authority<\/span> is authorized to require in connection with any loan from the Fund<\/span> such documents, instruments, certificates, legal opinions<\/span>, and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority<\/span> may establish, the Authority<\/span> may require, as a condition to making any loan from the Fund<\/span>, that the local government<\/span> receiving the loan covenant perform any of the following:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Establish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project<\/span>; (ii) any outstanding indebtedness incurred for the purposes of the project<\/span>, including the principal and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund<\/span> deemed necessary or appropriate by the Authority<\/span> to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Levy<\/span> and collect ad valorem taxes on all property within the jurisdiction<\/span> of the local government<\/span> subject to local taxation sufficient to pay the principal and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Create and maintain a special fund<\/span> or funds<\/span> for the payment of the principal and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project<\/span> or any portions thereof or other property of the local government<\/span>, and deposit into any fund<\/span> or funds<\/span> amounts sufficient to make any payments on the loan as they become due and payable; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Create and maintain other special funds<\/span> as required by the Authority<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Perform other acts, including the conveyance of, or the granting of liens<\/span> on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund<\/span>, or to take other actions as may be deemed necessary or desirable by the Authority<\/span> to secure payment of the principal and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and to provide for the remedies of the Fund<\/span> in the event of any default<\/span> by the local government<\/span> in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit, and other forms of collateral<\/span>, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects<\/span>, or the combination of one or more projects<\/span> with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects<\/span>, undertakings, facilities, utilities, and systems to secure the loan from the Fund<\/span> to the local government<\/span> made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project<\/span>; and\n\t\t\td. The procurement of casualty and liability insurance.\n\t\t\tAll local governments<\/span> borrowing money from the Fund<\/span> are authorized to perform any acts, take any action, adopt any proceedings, and make and carry out any contracts<\/span> that are contemplated by this chapter. Such contracts<\/span> need not be identical among all local governments<\/span>, but may be structured as determined by the Authority<\/span> according to the needs of the contracting local governments<\/span> and the Fund<\/span>.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds<\/span> of the Authority<\/span>, the Authority<\/span> may consent to and approve any modification in the terms of any loan to any local government<\/span> subject to the guidelines adopted by the Board. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOANS TO LOCAL GOVERNMENTS (\u00a7 15.2-2424)\n\nExcept as otherwise provided in this chapter, money in the Fund shall be used\nsolely to make loans to local governments to finance or refinance the cost of\nany project. No loan from the Fund shall exceed the total cost of the project to\nbe financed or the outstanding principal amount of indebtedness to be refinanced\nplus reasonable financing expenses.\n\t\tThe Authority shall determine the terms and conditions of any loan from the\nFund, which may vary between local governments. Each loan shall be evidenced by\nappropriate bonds or notes of the local government payable to the Fund. The\nbonds or notes shall have been duly authorized by the local government and\nexecuted by its authorized legal representatives. The Authority is authorized to\nrequire in connection with any loan from the Fund such documents, instruments,\ncertificates, legal opinions, and other information as it may deem necessary or\nconvenient. In addition to any other terms or conditions which the Authority may\nestablish, the Authority may require, as a condition to making any loan from the\nFund, that the local government receiving the loan covenant perform any of the\nfollowing:\n\n1. Establish and collect rents, rates, fees, and charges to produce revenue\nsufficient to pay all or a specified portion of (i) the costs of operation,\nmaintenance, replacement, renewal, and repairs of the project; (ii) any\noutstanding indebtedness incurred for the purposes of the project, including the\nprincipal and premium, if any, and interest on the loan from the Fund to the\nlocal government; and (iii) any amounts necessary to create and maintain any\nrequired reserve, including any rate stabilization fund deemed necessary or\nappropriate by the Authority to offset the need, in whole or in part, for future\nincreases in rents, rates, fees, or charges;\n\n2. Levy and collect ad valorem taxes on all property within the jurisdiction of\nthe local government subject to local taxation sufficient to pay the principal\nand premium, if any, and interest on the loan from the Fund to the local\ngovernment;\n\n3. Create and maintain a special fund or funds for the payment of the principal\nand premium, if any, and interest on the loan from the Fund to the local\ngovernment and any other amounts becoming due under any agreement entered into\nin connection with the loan, or for the operation, maintenance, repair, or\nreplacement of the project or any portions thereof or other property of the\nlocal government, and deposit into any fund or funds amounts sufficient to make\nany payments on the loan as they become due and payable;\n\n4. Create and maintain other special funds as required by the Authority; and\n\n5. Perform other acts, including the conveyance of, or the granting of liens on\nor security interests in, real and personal property, together with all rights,\ntitle and interest therein, to the Fund, or to take other actions as may be\ndeemed necessary or desirable by the Authority to secure payment of the\nprincipal and premium, if any, and interest on the loan from the Fund to the\nlocal government and to provide for the remedies of the Fund in the event of any\ndefault by the local government in the payment of the loan, including, without\nlimitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit, and other\nforms of collateral, security, liquidity arrangements or credit supports for the\nloan from any source, public or private, and the payment therefor of premiums,\nfees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more\nprojects with one or more other undertakings, facilities, utilities, or systems,\nfor the purpose of operations and financing, and the pledging of the revenues\nfrom such combined projects, undertakings, facilities, utilities, and systems to\nsecure the loan from the Fund to the local government made in connection with\nsuch combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform\nany acts, take any action, adopt any proceedings, and make and carry out any\ncontracts that are contemplated by this chapter. Such contracts need not be\nidentical among all local governments, but may be structured as determined by\nthe Authority according to the needs of the contracting local governments and\nthe Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds\nof the Authority, the Authority may consent to and approve any modification in\nthe terms of any loan to any local government subject to the guidelines adopted\nby the Board.\n\nHISTORY: 2009, c. 131.","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}}