{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2623.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2623.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2623.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2623.html"}],"law_id":85499,"edition_id":1,"section_id":85499,"structure_id":14965,"section_number":"15.2-2623","catch_line":"Defeasance of indebtedness; rights of owners","history":"1994, c. 714, \u00a7 15.1-227.24:1; 1997, c. 587.","full_text":"The governing body of any locality is authorized to provide by resolution or ordinance for the defeasance of any bonds of the locality now or hereafter outstanding, to the extent that the defeasance of such bonds is not otherwise provided for in the resolution, ordinance, indenture or other document governing the issuance of such bonds. Bonds to be defeased pursuant to this section shall be deemed defeased and no longer outstanding when there has been established with a bank or trust company designated by the locality an escrow or sinking fund consisting of cash and noncallable obligations of, or unconditionally guaranteed by, the United States of America or noncallable obligations of, or unconditionally guaranteed by, the Commonwealth in an amount which together with interest to be earned on such obligations will be sufficient to pay all bonds to be defeased either at maturity or upon redemption; however, if such bonds are to be defeased either at maturity or upon redemption, notice of the redemption of such bonds shall have been duly given or irrevocable instructions to redeem such bonds shall have been given by the locality.\n\t\tAny escrow fund established pursuant to this section shall be irrevocably pledged to the payment of the bonds to be defeased and shall be used solely to pay such bonds at maturity or upon earlier redemption. It is the intent that any escrow fund established pursuant to this section shall constitute a special fund for the payment of the defeased bonds and that the defeased bonds shall not be included for the purpose of determining any limitation upon the amount of indebtedness of the locality which is imposed by law.\n\t\tThe owners of any outstanding bonds to be defeased shall be divested of all rights and security relating to the bonds, except the right to payment due to principal, premium, if any, and interest, which shall be paid solely from the escrow fund.","order_by":null,"text":{"0":{"id":306307,"text":"The governing body of any locality is authorized to provide by resolution or ordinance for the defeasance of any bonds of the locality now or hereafter outstanding, to the extent that the defeasance of such bonds is not otherwise provided for in the resolution, ordinance, indenture or other document governing the issuance of such bonds. Bonds to be defeased pursuant to this section shall be deemed defeased and no longer outstanding when there has been established with a bank or trust company designated by the locality an escrow or sinking fund consisting of cash and noncallable obligations of, or unconditionally guaranteed by, the United States of America or noncallable obligations of, or unconditionally guaranteed by, the Commonwealth in an amount which together with interest to be earned on such obligations will be sufficient to pay all bonds to be defeased either at maturity or upon redemption; however, if such bonds are to be defeased either at maturity or upon redemption, notice of the redemption of such bonds shall have been duly given or irrevocable instructions to redeem such bonds shall have been given by the locality.\n\t\tAny escrow fund established pursuant to this section shall be irrevocably pledged to the payment of the bonds to be defeased and shall be used solely to pay such bonds at maturity or upon earlier redemption. It is the intent that any escrow fund established pursuant to this section shall constitute a special fund for the payment of the defeased bonds and that the defeased bonds shall not be included for the purpose of determining any limitation upon the amount of indebtedness of the locality which is imposed by law.\n\t\tThe owners of any outstanding bonds to be defeased shall be divested of all rights and security relating to the bonds, except the right to payment due to principal, premium, if any, and interest, which shall be paid solely from the escrow fund.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14965,"edition_id":1,"name":"Provisions Applicable to All Bonds","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13707,"metadata":{},"date_created":"2026-06-26 03:51:09","date_modified":"2026-06-26 03:51:09","permalink":{"id":155963,"object_type":"structure","relational_id":14965,"identifier":"2","token":"15.2\/II\/26\/2","url":"\/15.2\/II\/26\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13707,"edition_id":1,"name":"Public Finance Act","identifier":"26","label":"chapter","depth":3,"order_by":1,"parent_id":12733,"metadata":{},"date_created":"2026-06-26 03:45:37","date_modified":"2026-06-26 03:45:37","permalink":{"id":155943,"object_type":"structure","relational_id":13707,"identifier":"26","token":"15.2\/II\/26","url":"\/15.2\/II\/26\/","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":83529,"structure_id":14965,"section_number":"15.2-2604","catch_line":"Powers generally","url":"\/15.2-2604\/","token":"15.2\/II\/26\/2\/15.2-2604","metadata":false},{"id":85999,"structure_id":14965,"section_number":"15.2-2605","catch_line":"Collection of rents and charges; liens on real estate; discharge and enforcement of liens","url":"\/15.2-2605\/","token":"15.2\/II\/26\/2\/15.2-2605","metadata":false},{"id":64803,"structure_id":14965,"section_number":"15.2-2606","catch_line":"Public hearing before issuance of bonds","url":"\/15.2-2606\/","token":"15.2\/II\/26\/2\/15.2-2606","metadata":false},{"id":60104,"structure_id":14965,"section_number":"15.2-2607","catch_line":"Provisions which may be embodied in bond ordinances or resolution; adoption; filing copy with court","url":"\/15.2-2607\/","token":"15.2\/II\/26\/2\/15.2-2607","metadata":false},{"id":61638,"structure_id":14965,"section_number":"15.2-2608","catch_line":"Bonds for revenue-producing undertakings","url":"\/15.2-2608\/","token":"15.2\/II\/26\/2\/15.2-2608","metadata":false},{"id":58186,"structure_id":14965,"section_number":"15.2-2609","catch_line":"Covenants relating to issuance of revenue bonds","url":"\/15.2-2609\/","token":"15.2\/II\/26\/2\/15.2-2609","metadata":false},{"id":59146,"structure_id":14965,"section_number":"15.2-2610","catch_line":"Request for referendum filed with court; order for election; notice","url":"\/15.2-2610\/","token":"15.2\/II\/26\/2\/15.2-2610","metadata":false},{"id":73440,"structure_id":14965,"section_number":"15.2-2611","catch_line":"Holding of election; order authorizing bonds; authority of governing body","url":"\/15.2-2611\/","token":"15.2\/II\/26\/2\/15.2-2611","metadata":false},{"id":75201,"structure_id":14965,"section_number":"15.2-2612","catch_line":"Dating; rate of interest; maturity; denomination; place of payment","url":"\/15.2-2612\/","token":"15.2\/II\/26\/2\/15.2-2612","metadata":false},{"id":73286,"structure_id":14965,"section_number":"15.2-2613","catch_line":"Form and manner of execution; signature of person ceasing to be officer","url":"\/15.2-2613\/","token":"15.2\/II\/26\/2\/15.2-2613","metadata":false},{"id":70278,"structure_id":14965,"section_number":"15.2-2614","catch_line":"Bearer, registered or book entry form","url":"\/15.2-2614\/","token":"15.2\/II\/26\/2\/15.2-2614","metadata":false},{"id":65731,"structure_id":14965,"section_number":"15.2-2615","catch_line":"Bonds deemed negotiable instruments","url":"\/15.2-2615\/","token":"15.2\/II\/26\/2\/15.2-2615","metadata":false},{"id":67880,"structure_id":14965,"section_number":"15.2-2616","catch_line":"Interim receipts or temporary bonds exchangeable for definitive bonds","url":"\/15.2-2616\/","token":"15.2\/II\/26\/2\/15.2-2616","metadata":false},{"id":66232,"structure_id":14965,"section_number":"15.2-2617","catch_line":"Sale of bonds","url":"\/15.2-2617\/","token":"15.2\/II\/26\/2\/15.2-2617","metadata":false},{"id":86877,"structure_id":14965,"section_number":"15.2-2618","catch_line":"Disposition of proceeds; separate fund","url":"\/15.2-2618\/","token":"15.2\/II\/26\/2\/15.2-2618","metadata":false},{"id":65883,"structure_id":14965,"section_number":"15.2-2619","catch_line":"Investment of proceeds pending application to authorized purpose","url":"\/15.2-2619\/","token":"15.2\/II\/26\/2\/15.2-2619","metadata":false},{"id":74470,"structure_id":14965,"section_number":"15.2-2620","catch_line":"Bonds made legal investments","url":"\/15.2-2620\/","token":"15.2\/II\/26\/2\/15.2-2620","metadata":false},{"id":58244,"structure_id":14965,"section_number":"15.2-2621","catch_line":"Bonds mutilated, lost or destroyed","url":"\/15.2-2621\/","token":"15.2\/II\/26\/2\/15.2-2621","metadata":false},{"id":60422,"structure_id":14965,"section_number":"15.2-2622","catch_line":"Destruction of bonds and coupons after payment in full","url":"\/15.2-2622\/","token":"15.2\/II\/26\/2\/15.2-2622","metadata":false},{"id":85499,"structure_id":14965,"section_number":"15.2-2623","catch_line":"Defeasance of indebtedness; rights of owners","url":"\/15.2-2623\/","token":"15.2\/II\/26\/2\/15.2-2623","metadata":false},{"id":65050,"structure_id":14965,"section_number":"15.2-2624","catch_line":"Tax to pay principal and interest","url":"\/15.2-2624\/","token":"15.2\/II\/26\/2\/15.2-2624","metadata":false},{"id":82735,"structure_id":14965,"section_number":"15.2-2625","catch_line":"Deposit of funds; security; investment of funds","url":"\/15.2-2625\/","token":"15.2\/II\/26\/2\/15.2-2625","metadata":false},{"id":64166,"structure_id":14965,"section_number":"15.2-2626","catch_line":"Contracts concerning interest rates, currency, cash flow or other basis","url":"\/15.2-2626\/","token":"15.2\/II\/26\/2\/15.2-2626","metadata":false},{"id":64379,"structure_id":14965,"section_number":"15.2-2627","catch_line":"Time for contesting validity of proposed bond issue; when bonds presumed valid","url":"\/15.2-2627\/","token":"15.2\/II\/26\/2\/15.2-2627","metadata":false},{"id":77140,"structure_id":14965,"section_number":"15.2-2628","catch_line":"Notes in anticipation of bond issue","url":"\/15.2-2628\/","token":"15.2\/II\/26\/2\/15.2-2628","metadata":false},{"id":57094,"structure_id":14965,"section_number":"15.2-2629","catch_line":"Loans to meet appropriations for current year","url":"\/15.2-2629\/","token":"15.2\/II\/26\/2\/15.2-2629","metadata":false},{"id":71319,"structure_id":14965,"section_number":"15.2-2630","catch_line":"Loans in anticipation of federal and state funds","url":"\/15.2-2630\/","token":"15.2\/II\/26\/2\/15.2-2630","metadata":false},{"id":71705,"structure_id":14965,"section_number":"15.2-2631","catch_line":"Terms of temporary loans","url":"\/15.2-2631\/","token":"15.2\/II\/26\/2\/15.2-2631","metadata":false}],"previous_section":{"id":60422,"structure_id":14965,"section_number":"15.2-2622","catch_line":"Destruction of bonds and coupons after payment in full","url":"\/15.2-2622\/","token":"15.2\/II\/26\/2\/15.2-2622","metadata":false},"next_section":{"id":65050,"structure_id":14965,"section_number":"15.2-2624","catch_line":"Tax to pay principal and interest","url":"\/15.2-2624\/","token":"15.2\/II\/26\/2\/15.2-2624","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2623\/","history_text":"<p>This law was first created in 1994. The record of its establishment is cataloged in chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?941+ful+CHAP0714\">714<\/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. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1997, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?971+ful+CHAP0587\">587<\/a>.<\/p>","references":[{"id":73854,"section_number":"22.1-167.1","catch_line":"Refunding issues; pass-through of savings realized","order_by":null,"url":"\/22.1-167.1\/"}],"refers_to":false,"permalink":{"id":156041,"object_type":"law","relational_id":85499,"identifier":"15.2-2623","token":"15.2\/II\/26\/2\/15.2-2623","url":"\/15.2-2623\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2623\/","token":"15.2\/II\/26\/2\/15.2-2623","dublin_core":{"Title":"Defeasance of indebtedness; rights of owners","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2623","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>The <span class=\"dictionary\">governing body<\/span> of any <span class=\"dictionary\">locality<\/span> is authorized to provide by resolution or <span class=\"dictionary\">ordinance<\/span> for the defeasance of any <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> of the <span class=\"dictionary\">locality<\/span> now or hereafter outstanding, to the extent that the defeasance of such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> is not otherwise provided for in the resolution, <span class=\"dictionary\">ordinance<\/span>, indenture or other document governing the issuance of such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span>. <span class=\"dictionary\"><span class=\"dictionary\">Bonds<\/span><\/span> to be defeased pursuant to this section shall be deemed defeased and no longer outstanding when there has been established with a bank or trust company designated by the <span class=\"dictionary\">locality<\/span> an escrow or sinking fund consisting of cash and noncallable obligations of, or unconditionally guaranteed by, the United States of America or noncallable obligations of, or unconditionally guaranteed by, the Commonwealth in an amount which together with interest to be earned on such obligations will be sufficient to pay all <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> to be defeased either at maturity or upon <span class=\"dictionary\">redemption<\/span>; however, if such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> are to be defeased either at maturity or upon <span class=\"dictionary\">redemption<\/span>, notice of the <span class=\"dictionary\">redemption<\/span> of such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> shall have been duly given or irrevocable instructions to redeem such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> shall have been given by the <span class=\"dictionary\">locality<\/span>.\n\t\tAny escrow fund established pursuant to this section shall be irrevocably pledged to the payment of the <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> to be defeased and shall be used solely to pay such <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> at maturity or upon earlier <span class=\"dictionary\">redemption<\/span>. It is the <span class=\"dictionary\">intent<\/span> that any escrow fund established pursuant to this section shall constitute a special fund for the payment of the defeased <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> and that the defeased <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> shall not be included for the purpose of determining any limitation upon the amount of indebtedness of the <span class=\"dictionary\">locality<\/span> which is imposed by <span class=\"dictionary\">law<\/span>.\n\t\tThe owners of any outstanding <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span> to be defeased shall be divested of all rights and security relating to the <span class=\"dictionary\"><span class=\"dictionary\">bonds<\/span><\/span>, except the right to payment due to principal, premium, if any, and interest, which shall be paid solely from the escrow fund.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nDEFEASANCE OF INDEBTEDNESS; RIGHTS OF OWNERS (\u00a7 15.2-2623)\n\nThe governing body of any locality is authorized to provide by resolution or\nordinance for the defeasance of any bonds of the locality now or hereafter\noutstanding, to the extent that the defeasance of such bonds is not otherwise\nprovided for in the resolution, ordinance, indenture or other document governing\nthe issuance of such bonds. Bonds to be defeased pursuant to this section shall\nbe deemed defeased and no longer outstanding when there has been established\nwith a bank or trust company designated by the locality an escrow or sinking\nfund consisting of cash and noncallable obligations of, or unconditionally\nguaranteed by, the United States of America or noncallable obligations of, or\nunconditionally guaranteed by, the Commonwealth in an amount which together with\ninterest to be earned on such obligations will be sufficient to pay all bonds to\nbe defeased either at maturity or upon redemption; however, if such bonds are to\nbe defeased either at maturity or upon redemption, notice of the redemption of\nsuch bonds shall have been duly given or irrevocable instructions to redeem such\nbonds shall have been given by the locality.\n\t\tAny escrow fund established pursuant to this section shall be irrevocably\npledged to the payment of the bonds to be defeased and shall be used solely to\npay such bonds at maturity or upon earlier redemption. It is the intent that any\nescrow fund established pursuant to this section shall constitute a special fund\nfor the payment of the defeased bonds and that the defeased bonds shall not be\nincluded for the purpose of determining any limitation upon the amount of\nindebtedness of the locality which is imposed by law.\n\t\tThe owners of any outstanding bonds to be defeased shall be divested of all\nrights and security relating to the bonds, except the right to payment due to\nprincipal, premium, if any, and interest, which shall be paid solely from the\nescrow fund.\n\nHISTORY: 1994, c. 714, \u00a7 15.1-227.24:1; 1997, c. 587.","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}}