{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/15.2-2659.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/15.2-2659.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/15.2-2659.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/15.2-2659.html"}],"law_id":78015,"edition_id":1,"section_id":78015,"structure_id":14789,"section_number":"15.2-2659","catch_line":"Investigation by Governor of alleged defaults; withholding state funds from defaulting locality; payment of funds withheld; receipts, reports, etc.; magisterial and school district defaults included","history":"Code 1950, \u00a7 15-666.66; 1958, c. 640; 1962, c. 623, \u00a7 15.1-225; 1964, c. 46; 1971, Ex. Sess., c. 224; 1988, c. 210; 1991, c. 668, \u00a7 15.1-227.61; 1997, c. 587.","full_text":"Whenever it appears to the Governor from an affidavit filed with him by or on behalf of the owner or owners of any general obligation bonds of any locality, or by any paying agent for the bonds that the locality has defaulted in the payment of the principal of or premium, if any, or interest on any of its outstanding general obligation bonds, the Governor shall immediately make a summary investigation into the facts set forth in the affidavit.\n\t\tIf it is established to the satisfaction of the Governor that the locality is in default in the payment of its bonds or the interest on them, the Governor shall immediately make an order directing the Comptroller to withhold all further payment to the locality of all funds, or of any part of them, appropriated and payable by the Commonwealth to the locality for any and all purposes, until the default is cured. The Governor shall, while the default continues, direct in writing the payment of all sums withheld by the Comptroller, or as much of them as is necessary, to the owners of the bonds in default, or the paying agent for the bonds, so as to cure, or cure insofar as possible, the default as to the bonds or interest on them.\n\t\tThe Governor shall, as soon as practicable, give notice of the default and of the availability of funds with the paying agent or with the Comptroller by publication one time in a daily newspaper of general circulation in the City of Richmond and in the case of registered bonds, by mail, to the registered owners of the bonds. The cost of the publication and mailing shall be a further charge against the funds in the hands of the Comptroller payable to the locality. Any payment so made by the Comptroller to the owners of the bonds in default, or to the paying agent for the bonds, shall be credited as if made directly by the locality and shall be charged by the Comptroller against the first appropriations otherwise payable to the locality as if paid to the locality. The owners of the bonds in default, or the paying agent for the bonds, at the time of payment or at the time of each payment shall receipt for the payment and deliver to the Comptroller all bonds and interest coupons or assignments, in a form satisfactory to the Comptroller, of the right to receive the principal or interest satisfied by the payment. The Comptroller shall report each payment made to the governing body of the defaulting locality and deliver or send by registered mail to the governing body all bonds, interest coupons, and assignments received by the Comptroller under the provisions of this section.\n\t\tIf there is no paying agent for the bonds, the Comptroller shall hold for the benefit of the owners of the bonds in default who do not present their bonds, coupons or assignments for payment their pro rata share of the amounts so withheld and shall pay their share of such amounts when the bonds, coupons or assignments are presented.\n\t\tFor the purpose of this section, bonds of any magisterial district or school district of any county shall be treated as bonds of the county in which the magisterial district or school district is located.\n\t\tNothing in this section shall be construed to create any obligation on the part of the Comptroller or the Commonwealth to make any payment on behalf of the defaulting locality other than from funds appropriated and payable to the defaulting locality.","order_by":null,"text":{"0":{"id":279705,"text":"Whenever it appears to the Governor from an affidavit filed with him by or on behalf of the owner or owners of any general obligation bonds of any locality, or by any paying agent for the bonds that the locality has defaulted in the payment of the principal of or premium, if any, or interest on any of its outstanding general obligation bonds, the Governor shall immediately make a summary investigation into the facts set forth in the affidavit.\n\t\tIf it is established to the satisfaction of the Governor that the locality is in default in the payment of its bonds or the interest on them, the Governor shall immediately make an order directing the Comptroller to withhold all further payment to the locality of all funds, or of any part of them, appropriated and payable by the Commonwealth to the locality for any and all purposes, until the default is cured. The Governor shall, while the default continues, direct in writing the payment of all sums withheld by the Comptroller, or as much of them as is necessary, to the owners of the bonds in default, or the paying agent for the bonds, so as to cure, or cure insofar as possible, the default as to the bonds or interest on them.\n\t\tThe Governor shall, as soon as practicable, give notice of the default and of the availability of funds with the paying agent or with the Comptroller by publication one time in a daily newspaper of general circulation in the City of Richmond and in the case of registered bonds, by mail, to the registered owners of the bonds. The cost of the publication and mailing shall be a further charge against the funds in the hands of the Comptroller payable to the locality. Any payment so made by the Comptroller to the owners of the bonds in default, or to the paying agent for the bonds, shall be credited as if made directly by the locality and shall be charged by the Comptroller against the first appropriations otherwise payable to the locality as if paid to the locality. The owners of the bonds in default, or the paying agent for the bonds, at the time of payment or at the time of each payment shall receipt for the payment and deliver to the Comptroller all bonds and interest coupons or assignments, in a form satisfactory to the Comptroller, of the right to receive the principal or interest satisfied by the payment. The Comptroller shall report each payment made to the governing body of the defaulting locality and deliver or send by registered mail to the governing body all bonds, interest coupons, and assignments received by the Comptroller under the provisions of this section.\n\t\tIf there is no paying agent for the bonds, the Comptroller shall hold for the benefit of the owners of the bonds in default who do not present their bonds, coupons or assignments for payment their pro rata share of the amounts so withheld and shall pay their share of such amounts when the bonds, coupons or assignments are presented.\n\t\tFor the purpose of this section, bonds of any magisterial district or school district of any county shall be treated as bonds of the county in which the magisterial district or school district is located.\n\t\tNothing in this section shall be construed to create any obligation on the part of the Comptroller or the Commonwealth to make any payment on behalf of the defaulting locality other than from funds appropriated and payable to the defaulting locality.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14789,"edition_id":1,"name":"Miscellaneous","identifier":"7","label":"article","depth":4,"order_by":1,"parent_id":13707,"metadata":{},"date_created":"2026-06-26 03:49:54","date_modified":"2026-06-26 03:49:54","permalink":{"id":156193,"object_type":"structure","relational_id":14789,"identifier":"7","token":"15.2\/II\/26\/7","url":"\/15.2\/II\/26\/7\/","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":78015,"structure_id":14789,"section_number":"15.2-2659","catch_line":"Investigation by Governor of alleged defaults; withholding state funds from defaulting locality; payment of funds withheld; receipts, reports, etc.; magisterial and school district defaults included","url":"\/15.2-2659\/","token":"15.2\/II\/26\/7\/15.2-2659","metadata":false},{"id":62394,"structure_id":14789,"section_number":"15.2-2660","catch_line":"Bonds not affected by project undertaken","url":"\/15.2-2660\/","token":"15.2\/II\/26\/7\/15.2-2660","metadata":false},{"id":62886,"structure_id":14789,"section_number":"15.2-2661","catch_line":"Provisions of chapter controlling; powers conferred are additional","url":"\/15.2-2661\/","token":"15.2\/II\/26\/7\/15.2-2661","metadata":false},{"id":56578,"structure_id":14789,"section_number":"15.2-2662","catch_line":"Validation of bonds","url":"\/15.2-2662\/","token":"15.2\/II\/26\/7\/15.2-2662","metadata":false},{"id":66777,"structure_id":14789,"section_number":"15.2-2663","catch_line":"Transition","url":"\/15.2-2663\/","token":"15.2\/II\/26\/7\/15.2-2663","metadata":false}],"next_section":{"id":62394,"structure_id":14789,"section_number":"15.2-2660","catch_line":"Bonds not affected by project undertaken","url":"\/15.2-2660\/","token":"15.2\/II\/26\/7\/15.2-2660","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-2659\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 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 1964, chapter 46; in 1988, chapter 210; in 1991, chapter 668; in 1997, chapter 587<\/a>.<\/p>","references":[{"id":73995,"section_number":"10.1-1237","catch_line":"Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund established; uses","order_by":null,"url":"\/10.1-1237\/"},{"id":81747,"section_number":"10.1-603.18:2","catch_line":"Collection of money due Fund","order_by":null,"url":"\/10.1-603.18_2\/"},{"id":81329,"section_number":"10.1-603.32","catch_line":"Collection of money due to Fund","order_by":null,"url":"\/10.1-603.32\/"},{"id":56328,"section_number":"15.2-2423","catch_line":"Collection of money due Fund","order_by":null,"url":"\/15.2-2423\/"},{"id":79751,"section_number":"15.2-2434","catch_line":"Collection of money due Fund","order_by":null,"url":"\/15.2-2434\/"},{"id":57015,"section_number":"22.1-161","catch_line":"Loan declared indebtedness of the county, city or town; lien on locality's funds created","order_by":null,"url":"\/22.1-161\/"},{"id":85235,"section_number":"22.1-167.2","catch_line":"Security for payment; appropriations","order_by":null,"url":"\/22.1-167.2\/"},{"id":73276,"section_number":"22.1-168","catch_line":"Security for payment and bonds; provisions of trust indenture or resolution of Board","order_by":null,"url":"\/22.1-168\/"},{"id":65107,"section_number":"29.1-101.4","catch_line":"Collection of money due to the Fund","order_by":null,"url":"\/29.1-101.4\/"},{"id":80558,"section_number":"3.2-3115","catch_line":"Collection of money due the Fund","order_by":null,"url":"\/3.2-3115\/"},{"id":76096,"section_number":"36-156.2","catch_line":"Virginia Defective Drywall Correction and Restoration Assistance Fund established; uses","order_by":null,"url":"\/36-156.2\/"},{"id":58252,"section_number":"5.1-30.4","catch_line":"Collection of money due Fund","order_by":null,"url":"\/5.1-30.4\/"},{"id":85528,"section_number":"62.1-203","catch_line":"Powers of Authority","order_by":null,"url":"\/62.1-203\/"},{"id":58282,"section_number":"62.1-209","catch_line":"Provisions of resolution or trust indenture authorizing issuance of bonds","order_by":null,"url":"\/62.1-209\/"},{"id":82443,"section_number":"62.1-228","catch_line":"Collection of money due Fund","order_by":null,"url":"\/62.1-228\/"},{"id":62440,"section_number":"62.1-237","catch_line":"Collection of money due Fund","order_by":null,"url":"\/62.1-237\/"},{"id":69900,"section_number":"62.1-241.5","catch_line":"Collection of money due Fund","order_by":null,"url":"\/62.1-241.5\/"}],"refers_to":false,"permalink":{"id":156195,"object_type":"law","relational_id":78015,"identifier":"15.2-2659","token":"15.2\/II\/26\/7\/15.2-2659","url":"\/15.2-2659\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/15.2-2659\/","token":"15.2\/II\/26\/7\/15.2-2659","dublin_core":{"Title":"Investigation by Governor of alleged defaults; withholding state funds from defaulting locality; payment of funds withheld; receipts, reports, etc.; magisterial and school district defaults included","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-2659","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Whenever it appears to the Governor from an affidavit<\/span> filed with him by or on behalf of the owner or owners of any general obligation bonds<\/span> of any locality<\/span>, or by any paying agent for the bonds that the locality<\/span> has defaulted in the payment of the principal of or premium, if any, or interest on any of its outstanding general obligation bonds<\/span>, the Governor shall immediately make a summary investigation into the facts<\/span> set forth in the affidavit<\/span>.\n\t\tIf it is established to the satisfaction of the Governor that the locality<\/span> is in default<\/span> in the payment of its bonds or the interest on them, the Governor shall immediately make an order<\/span> directing the Comptroller to withhold all further payment to the locality<\/span> of all funds, or of any part of them, appropriated and payable by the Commonwealth to the locality<\/span> for any and all purposes, until the default<\/span> is cured. The Governor shall, while the default<\/span> continues, direct in writing the payment of all sums withheld by the Comptroller, or as much of them as is necessary, to the owners of the bonds in default<\/span>, or the paying agent for the bonds, so as to cure, or cure insofar as possible, the default<\/span> as to the bonds or interest on them.\n\t\tThe Governor shall, as soon as practicable, give notice of the default<\/span> and of the availability of funds with the paying agent or with the Comptroller by publication one time in a daily newspaper of general circulation in the City<\/span> of Richmond and in the case of registered bonds, by mail, to the registered owners of the bonds. The cost<\/span> of the publication and mailing shall be a further charge against the funds in the hands of the Comptroller payable to the locality<\/span>. Any payment so made by the Comptroller to the owners of the bonds in default<\/span>, or to the paying agent for the bonds, shall be credited as if made directly by the locality<\/span> and shall be charged by the Comptroller against the first appropriations otherwise payable to the locality<\/span> as if paid to the locality<\/span>. The owners of the bonds in default<\/span>, or the paying agent for the bonds, at the time of payment or at the time of each payment shall receipt for the payment and deliver to the Comptroller all bonds and interest coupons or assignments, in a form satisfactory to the Comptroller, of the right to receive the principal or interest satisfied by the payment. The Comptroller shall report each payment made to the governing body<\/span> of the defaulting locality<\/span> and deliver or send by registered mail to the governing body<\/span> all bonds, interest coupons, and assignments received by the Comptroller under the provisions of this section.\n\t\tIf there is no paying agent for the bonds, the Comptroller shall hold for the benefit of the owners of the bonds in default<\/span> who do not present their bonds, coupons or assignments for payment their pro rata share of the amounts so withheld and shall pay their share of such amounts when the bonds, coupons or assignments are presented.\n\t\tFor the purpose of this section, bonds of any magisterial district or school district of any county<\/span> shall be treated as bonds of the county<\/span> in which the magisterial district or school district is located.\n\t\tNothing in this section shall be construed to create any obligation on the part of the Comptroller or the Commonwealth to make any payment on behalf of the defaulting locality<\/span> other than from funds appropriated and payable to the defaulting locality<\/span>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINVESTIGATION BY GOVERNOR OF ALLEGED DEFAULTS; WITHHOLDING STATE FUNDS FROM\nDEFAULTING LOCALITY; PAYMENT OF FUNDS WITHHELD; RECEIPTS, REPORTS, ETC.;\nMAGISTERIAL AND SCHOOL DISTRICT DEFAULTS INCLUDED (\u00a7 15.2-2659)\n\nWhenever it appears to the Governor from an affidavit filed with him by or on\nbehalf of the owner or owners of any general obligation bonds of any locality,\nor by any paying agent for the bonds that the locality has defaulted in the\npayment of the principal of or premium, if any, or interest on any of its\noutstanding general obligation bonds, the Governor shall immediately make a\nsummary investigation into the facts set forth in the affidavit.\n\t\tIf it is established to the satisfaction of the Governor that the locality is\nin default in the payment of its bonds or the interest on them, the Governor\nshall immediately make an order directing the Comptroller to withhold all\nfurther payment to the locality of all funds, or of any part of them,\nappropriated and payable by the Commonwealth to the locality for any and all\npurposes, until the default is cured. The Governor shall, while the default\ncontinues, direct in writing the payment of all sums withheld by the\nComptroller, or as much of them as is necessary, to the owners of the bonds in\ndefault, or the paying agent for the bonds, so as to cure, or cure insofar as\npossible, the default as to the bonds or interest on them.\n\t\tThe Governor shall, as soon as practicable, give notice of the default and of\nthe availability of funds with the paying agent or with the Comptroller by\npublication one time in a daily newspaper of general circulation in the City of\nRichmond and in the case of registered bonds, by mail, to the registered owners\nof the bonds. The cost of the publication and mailing shall be a further charge\nagainst the funds in the hands of the Comptroller payable to the locality. Any\npayment so made by the Comptroller to the owners of the bonds in default, or to\nthe paying agent for the bonds, shall be credited as if made directly by the\nlocality and shall be charged by the Comptroller against the first\nappropriations otherwise payable to the locality as if paid to the locality. The\nowners of the bonds in default, or the paying agent for the bonds, at the time\nof payment or at the time of each payment shall receipt for the payment and\ndeliver to the Comptroller all bonds and interest coupons or assignments, in a\nform satisfactory to the Comptroller, of the right to receive the principal or\ninterest satisfied by the payment. The Comptroller shall report each payment\nmade to the governing body of the defaulting locality and deliver or send by\nregistered mail to the governing body all bonds, interest coupons, and\nassignments received by the Comptroller under the provisions of this section.\n\t\tIf there is no paying agent for the bonds, the Comptroller shall hold for the\nbenefit of the owners of the bonds in default who do not present their bonds,\ncoupons or assignments for payment their pro rata share of the amounts so\nwithheld and shall pay their share of such amounts when the bonds, coupons or\nassignments are presented.\n\t\tFor the purpose of this section, bonds of any magisterial district or school\ndistrict of any county shall be treated as bonds of the county in which the\nmagisterial district or school district is located.\n\t\tNothing in this section shall be construed to create any obligation on the\npart of the Comptroller or the Commonwealth to make any payment on behalf of the\ndefaulting locality other than from funds appropriated and payable to the\ndefaulting locality.\n\nHISTORY: Code 1950, \u00a7 15-666.66; 1958, c. 640; 1962, c. 623, \u00a7 15.1-225; 1964,\nc. 46; 1971, Ex. Sess., c. 224; 1988, c. 210; 1991, c. 668, \u00a7 15.1-227.61;\n1997, 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}}