{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2644.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2644.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2644.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2644.html"}],"law_id":73131,"edition_id":1,"section_id":73131,"structure_id":16241,"section_number":"15.2-2644","catch_line":"Issuance or exchange for indebtedness to be retired; sale and disposition of proceeds; rights of owners","history":"Code 1950, \u00a7 15-666.34; 1958, c. 640; 1962, c. 623, \u00a7 15.1-193; 1977, c. 442; 1985, c. 196; 1991, c. 668, \u00a7 15.1-227.45; 1994, c. 714; 1997, c. 587.","full_text":"Any refunding bonds may be issued or exchanged for the indebtedness to be retired by them, including indebtedness not matured, redeemable or surrendered for retirement. Unless so exchanged, any locality may sell refunding bonds authorized under the provisions of this article in such manner, either at public or private sale, and for such price as the governing body of the locality may determine. The proceeds of any refunding bonds may be applied to (i) the payment of matured or redeemable indebtedness, including any redemption premium, (ii) the payment of unmatured indebtedness the evidences of which are on deposit with a bank or trust company designated by the locality for surrender to the locality upon receipt of payment in an amount not exceeding the amount of the indebtedness, or (iii) the establishment of 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 shall be sufficient to pay all indebtedness to be refunded either at maturity or upon redemption as provided for upon the creation of the escrow or sinking fund. Any escrow or sinking fund established, in whole or in part, from the proceeds of the sale of refunding bonds shall be irrevocably pledged to the payment of the indebtedness to be refunded and shall be used solely to pay the indebtedness at maturity or upon redemption or for the purchase of not less than all of the indebtedness to be refunded. It is the intent that any escrow or sinking fund established pursuant to this section shall constitute a special fund for the payment of the refunded indebtedness and that the refunded indebtedness 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 indebtedness to be refunded shall be divested of all rights and security relating to the indebtedness, except the right to payment when due of principal, premium, if any, and interest, which shall be paid solely from the escrow or sinking fund; provided that, in the case of debt issued before March 27, 1977, the governing body of the locality may provide that if the escrow or sinking fund is in any respect insufficient to make payment of principal, premium, if any, and interest, the original rights and security relating to the indebtedness shall be restored to the extent necessary to provide full payment.","order_by":null,"text":{"0":{"id":263330,"text":"Any refunding bonds may be issued or exchanged for the indebtedness to be retired by them, including indebtedness not matured, redeemable or surrendered for retirement. Unless so exchanged, any locality may sell refunding bonds authorized under the provisions of this article in such manner, either at public or private sale, and for such price as the governing body of the locality may determine. The proceeds of any refunding bonds may be applied to (i) the payment of matured or redeemable indebtedness, including any redemption premium, (ii) the payment of unmatured indebtedness the evidences of which are on deposit with a bank or trust company designated by the locality for surrender to the locality upon receipt of payment in an amount not exceeding the amount of the indebtedness, or (iii) the establishment of 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 shall be sufficient to pay all indebtedness to be refunded either at maturity or upon redemption as provided for upon the creation of the escrow or sinking fund. Any escrow or sinking fund established, in whole or in part, from the proceeds of the sale of refunding bonds shall be irrevocably pledged to the payment of the indebtedness to be refunded and shall be used solely to pay the indebtedness at maturity or upon redemption or for the purchase of not less than all of the indebtedness to be refunded. It is the intent that any escrow or sinking fund established pursuant to this section shall constitute a special fund for the payment of the refunded indebtedness and that the refunded indebtedness 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 indebtedness to be refunded shall be divested of all rights and security relating to the indebtedness, except the right to payment when due of principal, premium, if any, and interest, which shall be paid solely from the escrow or sinking fund; provided that, in the case of debt issued before March 27, 1977, the governing body of the locality may provide that if the escrow or sinking fund is in any respect insufficient to make payment of principal, premium, if any, and interest, the original rights and security relating to the indebtedness shall be restored to the extent necessary to provide full payment.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":16241,"edition_id":1,"name":"Refunding Bonds","identifier":"5","label":"article","depth":4,"order_by":1,"parent_id":13707,"metadata":{},"date_created":"2026-06-26 04:10:46","date_modified":"2026-06-26 04:10:46","permalink":{"id":156125,"object_type":"structure","relational_id":16241,"identifier":"5","token":"15.2\/II\/26\/5","url":"\/15.2\/II\/26\/5\/","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":81286,"structure_id":16241,"section_number":"15.2-2643","catch_line":"Authority for issuance; resolutions or ordinances","url":"\/15.2-2643\/","token":"15.2\/II\/26\/5\/15.2-2643","metadata":false},{"id":73131,"structure_id":16241,"section_number":"15.2-2644","catch_line":"Issuance or exchange for indebtedness to be retired; sale and disposition of proceeds; rights of owners","url":"\/15.2-2644\/","token":"15.2\/II\/26\/5\/15.2-2644","metadata":false},{"id":78725,"structure_id":16241,"section_number":"15.2-2645","catch_line":"Amount of bonds","url":"\/15.2-2645\/","token":"15.2\/II\/26\/5\/15.2-2645","metadata":false},{"id":73964,"structure_id":16241,"section_number":"15.2-2646","catch_line":"Participation in funds donated by the Commonwealth","url":"\/15.2-2646\/","token":"15.2\/II\/26\/5\/15.2-2646","metadata":false},{"id":65459,"structure_id":16241,"section_number":"15.2-2647","catch_line":"Expenses of authorization and issuance; agent to assist in refunding transaction","url":"\/15.2-2647\/","token":"15.2\/II\/26\/5\/15.2-2647","metadata":false},{"id":86780,"structure_id":16241,"section_number":"15.2-2648","catch_line":"Purchase in open market","url":"\/15.2-2648\/","token":"15.2\/II\/26\/5\/15.2-2648","metadata":false},{"id":86320,"structure_id":16241,"section_number":"15.2-2649","catch_line":"District refunding bonds","url":"\/15.2-2649\/","token":"15.2\/II\/26\/5\/15.2-2649","metadata":false}],"previous_section":{"id":81286,"structure_id":16241,"section_number":"15.2-2643","catch_line":"Authority for issuance; resolutions or ordinances","url":"\/15.2-2643\/","token":"15.2\/II\/26\/5\/15.2-2643","metadata":false},"next_section":{"id":78725,"structure_id":16241,"section_number":"15.2-2645","catch_line":"Amount of bonds","url":"\/15.2-2645\/","token":"15.2\/II\/26\/5\/15.2-2645","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2644\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 times. 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. Those modifications are as follows: in 1958, chapter 640; in 1962, chapter 623; in 1977, chapter 442; in 1985, chapter 196; in 1991, chapter 668; in 1994, chapter 714<\/a>; in 1997, chapter 587<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":156131,"object_type":"law","relational_id":73131,"identifier":"15.2-2644","token":"15.2\/II\/26\/5\/15.2-2644","url":"\/15.2-2644\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2644\/","token":"15.2\/II\/26\/5\/15.2-2644","dublin_core":{"Title":"Issuance or exchange for indebtedness to be retired; sale and disposition of proceeds; rights of owners","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2644","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Any refunding bonds<\/span><\/span> may be issued or exchanged for the indebtedness to be retired by them, including indebtedness not matured, redeemable or surrendered for retirement. Unless so exchanged, any locality<\/span> may sell refunding bonds<\/span><\/span> authorized under the provisions of this article in such manner, either at public or private sale, and for such price as the governing body<\/span> of the locality<\/span> may determine. The proceeds of any refunding bonds<\/span><\/span> may be applied to (i) the payment of matured or redeemable indebtedness, including any redemption<\/span> premium, (ii) the payment of unmatured indebtedness the evidences<\/span> of which are on deposit with a bank or trust company designated by the locality<\/span> for surrender to the locality<\/span> upon receipt of payment in an amount not exceeding the amount of the indebtedness, or (iii) the establishment of 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 shall be sufficient to pay all indebtedness to be refunded either at maturity or upon redemption<\/span> as provided for upon the creation of the escrow or sinking fund. Any escrow or sinking fund established, in whole or in part, from the proceeds of the sale of refunding bonds<\/span><\/span> shall be irrevocably pledged to the payment of the indebtedness to be refunded and shall be used solely to pay the indebtedness at maturity or upon redemption<\/span> or for the purchase of not less than all of the indebtedness to be refunded. It is the intent<\/span> that any escrow or sinking fund established pursuant to this section shall constitute a special fund for the payment of the refunded indebtedness and that the refunded indebtedness shall not be included for the purpose of determining any limitation upon the amount of indebtedness of the locality<\/span> which is imposed by law<\/span>.\n\t\tThe owners of any outstanding indebtedness to be refunded shall be divested of all rights and security relating to the indebtedness, except the right to payment when due of principal, premium, if any, and interest, which shall be paid solely from the escrow or sinking fund; provided that, in the case of debt issued before March 27, 1977, the governing body<\/span> of the locality<\/span> may provide that if the escrow or sinking fund is in any respect insufficient to make payment of principal, premium, if any, and interest, the original rights and security relating to the indebtedness shall be restored to the extent necessary to provide full payment.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nISSUANCE OR EXCHANGE FOR INDEBTEDNESS TO BE RETIRED; SALE AND DISPOSITION OF\nPROCEEDS; RIGHTS OF OWNERS (\u00a7 15.2-2644)\n\nAny refunding bonds may be issued or exchanged for the indebtedness to be\nretired by them, including indebtedness not matured, redeemable or surrendered\nfor retirement. Unless so exchanged, any locality may sell refunding bonds\nauthorized under the provisions of this article in such manner, either at public\nor private sale, and for such price as the governing body of the locality may\ndetermine. The proceeds of any refunding bonds may be applied to (i) the payment\nof matured or redeemable indebtedness, including any redemption premium, (ii)\nthe payment of unmatured indebtedness the evidences of which are on deposit with\na bank or trust company designated by the locality for surrender to the locality\nupon receipt of payment in an amount not exceeding the amount of the\nindebtedness, or (iii) the establishment of an escrow or sinking fund consisting\nof cash and noncallable obligations of, or unconditionally guaranteed by, the\nUnited States of America or noncallable obligations of, or unconditionally\nguaranteed by, the Commonwealth in an amount which together with interest to be\nearned on such obligations shall be sufficient to pay all indebtedness to be\nrefunded either at maturity or upon redemption as provided for upon the creation\nof the escrow or sinking fund. Any escrow or sinking fund established, in whole\nor in part, from the proceeds of the sale of refunding bonds shall be\nirrevocably pledged to the payment of the indebtedness to be refunded and shall\nbe used solely to pay the indebtedness at maturity or upon redemption or for the\npurchase of not less than all of the indebtedness to be refunded. It is the\nintent that any escrow or sinking fund established pursuant to this section\nshall constitute a special fund for the payment of the refunded indebtedness and\nthat the refunded indebtedness shall not be included for the purpose of\ndetermining any limitation upon the amount of indebtedness of the locality which\nis imposed by law.\n\t\tThe owners of any outstanding indebtedness to be refunded shall be divested of\nall rights and security relating to the indebtedness, except the right to\npayment when due of principal, premium, if any, and interest, which shall be\npaid solely from the escrow or sinking fund; provided that, in the case of debt\nissued before March 27, 1977, the governing body of the locality may provide\nthat if the escrow or sinking fund is in any respect insufficient to make\npayment of principal, premium, if any, and interest, the original rights and\nsecurity relating to the indebtedness shall be restored to the extent necessary\nto provide full payment.\n\nHISTORY: Code 1950, \u00a7 15-666.34; 1958, c. 640; 1962, c. 623, \u00a7 15.1-193; 1977,\nc. 442; 1985, c. 196; 1991, c. 668, \u00a7 15.1-227.45; 1994, c. 714; 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}}