{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4350.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4350.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4350.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4350.1.html"}],"law_id":64826,"edition_id":1,"section_id":64826,"structure_id":14719,"section_number":"2.2-4350.1","catch_line":"Prohibition on payment without an appropriation; prohibition on IOUs","history":"2015, c. 673.","full_text":"A\n\nAs used in this section, “IOU” means a document issued by a governmental entity or representative (i) that acknowledges a debt but that does not specify all repayment terms, such as the repayment date, and (ii) when moneys are not available to pay a current debt.B\n\n1. Notwithstanding any other provision of law, unless the General Assembly has appropriated funds to pay for a good or service or to make payment on a debt, no state department, agency, or other state entity nor any state official, officer, employee, or agent shall (i) attempt to pay for the good or service or attempt to make payment on the debt; (ii) issue any document or paper that guarantees payment, or purports to pay, for the good or service or guarantees payment, or purports to make payment, on the debt; or (iii) in any other way attempt to pay, guarantee payment, or purport to pay for the same.2\n\nThe prohibition on payment under subdivision 1 shall not apply (i) to payments required by federal law or (ii) if funds are lawfully available.C\n\nIn addition, in no case shall any (i) state department, agency, or other state entity or (ii) state official, officer, or employee in performing the duties of his position furnish an IOU in exchange for any good or service, as a means to pay for any good or service, or in lieu of a payment on a debt.","order_by":null,"text":{"0":{"id":235926,"text":"As used in this section, “IOU” means a document issued by a governmental entity or representative (i) that acknowledges a debt but that does not specify all repayment terms, such as the repayment date, and (ii) when moneys are not available to pay a current debt.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":235927,"text":"1. Notwithstanding any other provision of law, unless the General Assembly has appropriated funds to pay for a good or service or to make payment on a debt, no state department, agency, or other state entity nor any state official, officer, employee, or agent shall (i) attempt to pay for the good or service or attempt to make payment on the debt; (ii) issue any document or paper that guarantees payment, or purports to pay, for the good or service or guarantees payment, or purports to make payment, on the debt; or (iii) in any other way attempt to pay, guarantee payment, or purport to pay for the same.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":235928,"text":"The prohibition on payment under subdivision 1 shall not apply (i) to payments required by federal law or (ii) if funds are lawfully available.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":235929,"text":"In addition, in no case shall any (i) state department, agency, or other state entity or (ii) state official, officer, or employee in performing the duties of his position furnish an IOU in exchange for any good or service, as a means to pay for any good or service, or in lieu of a payment on a debt.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":14719,"edition_id":1,"name":"Prompt Payment","identifier":"4","label":"article","depth":5,"order_by":1,"parent_id":12752,"metadata":{},"date_created":"2026-06-26 03:49:31","date_modified":"2026-06-26 03:49:31","permalink":{"id":177277,"object_type":"structure","relational_id":14719,"identifier":"4","token":"2.2\/II\/B\/43\/4","url":"\/2.2\/II\/B\/43\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12752,"edition_id":1,"name":"Virginia Public Procurement Act","identifier":"43","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176989,"object_type":"structure","relational_id":12752,"identifier":"43","token":"2.2\/II\/B\/43","url":"\/2.2\/II\/B\/43\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12751,"edition_id":1,"name":"Transaction of Public Business","identifier":"B","label":"part","depth":3,"order_by":1,"parent_id":12750,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176445,"object_type":"structure","relational_id":12751,"identifier":"B","token":"2.2\/II\/B","url":"\/2.2\/II\/B\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12750,"edition_id":1,"name":"Administration of State Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176253,"object_type":"structure","relational_id":12750,"identifier":"II","token":"2.2\/II","url":"\/2.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68973,"structure_id":14719,"section_number":"2.2-4347","catch_line":"Definitions","url":"\/2.2-4347\/","token":"2.2\/II\/B\/43\/4\/2.2-4347","metadata":false},{"id":84033,"structure_id":14719,"section_number":"2.2-4348","catch_line":"Exemptions","url":"\/2.2-4348\/","token":"2.2\/II\/B\/43\/4\/2.2-4348","metadata":false},{"id":71738,"structure_id":14719,"section_number":"2.2-4349","catch_line":"Retainage to remain valid","url":"\/2.2-4349\/","token":"2.2\/II\/B\/43\/4\/2.2-4349","metadata":false},{"id":56401,"structure_id":14719,"section_number":"2.2-4350","catch_line":"Prompt payment of bills by state agencies","url":"\/2.2-4350\/","token":"2.2\/II\/B\/43\/4\/2.2-4350","metadata":false},{"id":64826,"structure_id":14719,"section_number":"2.2-4350.1","catch_line":"Prohibition on payment without an appropriation; prohibition on IOUs","url":"\/2.2-4350.1\/","token":"2.2\/II\/B\/43\/4\/2.2-4350.1","metadata":false},{"id":75782,"structure_id":14719,"section_number":"2.2-4351","catch_line":"Defect or impropriety in the invoice or goods and\/or services received","url":"\/2.2-4351\/","token":"2.2\/II\/B\/43\/4\/2.2-4351","metadata":false},{"id":73904,"structure_id":14719,"section_number":"2.2-4352","catch_line":"Prompt payment of bills by localities","url":"\/2.2-4352\/","token":"2.2\/II\/B\/43\/4\/2.2-4352","metadata":false},{"id":82180,"structure_id":14719,"section_number":"2.2-4353","catch_line":"Date of postmark deemed to be date payment is made","url":"\/2.2-4353\/","token":"2.2\/II\/B\/43\/4\/2.2-4353","metadata":false},{"id":67731,"structure_id":14719,"section_number":"2.2-4354","catch_line":"Payment clauses to be included in contracts","url":"\/2.2-4354\/","token":"2.2\/II\/B\/43\/4\/2.2-4354","metadata":false},{"id":72792,"structure_id":14719,"section_number":"2.2-4355","catch_line":"Interest penalty; exceptions","url":"\/2.2-4355\/","token":"2.2\/II\/B\/43\/4\/2.2-4355","metadata":false},{"id":86376,"structure_id":14719,"section_number":"2.2-4356","catch_line":"Comptroller to file annual report","url":"\/2.2-4356\/","token":"2.2\/II\/B\/43\/4\/2.2-4356","metadata":false}],"previous_section":{"id":56401,"structure_id":14719,"section_number":"2.2-4350","catch_line":"Prompt payment of bills by state agencies","url":"\/2.2-4350\/","token":"2.2\/II\/B\/43\/4\/2.2-4350","metadata":false},"next_section":{"id":75782,"structure_id":14719,"section_number":"2.2-4351","catch_line":"Defect or impropriety in the invoice or goods and\/or services received","url":"\/2.2-4351\/","token":"2.2\/II\/B\/43\/4\/2.2-4351","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4350.1\/","history_text":"

This law was first created in 2015. The record of its establishment is cataloged in chapter 673<\/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":177295,"object_type":"law","relational_id":64826,"identifier":"2.2-4350.1","token":"2.2\/II\/B\/43\/4\/2.2-4350.1","url":"\/2.2-4350.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4350.1\/","token":"2.2\/II\/B\/43\/4\/2.2-4350.1","dublin_core":{"Title":"Prohibition on payment without an appropriation; prohibition on IOUs","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4350.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “IOU<\/span>” means a document issued by a governmental entity or representative (i) that acknowledges a debt but that does not specify all repayment terms, such as the repayment date, and (ii) when moneys are not available to pay a current debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. Notwithstanding any other provision of law<\/span>, unless the General Assembly has appropriated funds to pay for a good or service or to make payment on a debt, no state department, agency, or other state entity nor any state official, officer, employee, or agent shall (i) attempt to pay for the good or service or attempt to make payment on the debt; (ii) issue<\/span> any document or paper that guarantees payment, or purports to pay, for the good or service or guarantees payment, or purports to make payment, on the debt; or (iii) in any other way attempt to pay, guarantee payment, or purport to pay for the same. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The prohibition on payment under subdivision 1 shall not apply (i) to payments required by federal law<\/span> or (ii) if funds are lawfully available. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In addition, in no case shall any (i) state department, agency, or other state entity or (ii) state official, officer, or employee in performing the duties of his position furnish an IOU<\/span> in exchange for any good or service, as a means to pay for any good or service, or in lieu of a payment on a debt. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITION ON PAYMENT WITHOUT AN APPROPRIATION; PROHIBITION ON IOUS (\u00a7\n2.2-4350.1)\n\nA. As used in this section, “IOU” means a document issued by a\ngovernmental entity or representative (i) that acknowledges a debt but that does\nnot specify all repayment terms, such as the repayment date, and (ii) when\nmoneys are not available to pay a current debt.\n\nB. 1. Notwithstanding any other provision of law, unless the General Assembly\nhas appropriated funds to pay for a good or service or to make payment on a\ndebt, no state department, agency, or other state entity nor any state official,\nofficer, employee, or agent shall (i) attempt to pay for the good or service or\nattempt to make payment on the debt; (ii) issue any document or paper that\nguarantees payment, or purports to pay, for the good or service or guarantees\npayment, or purports to make payment, on the debt; or (iii) in any other way\nattempt to pay, guarantee payment, or purport to pay for the same.\n\n 2. The prohibition on payment under subdivision 1 shall not apply (i) to\n payments required by federal law or (ii) if funds are lawfully available.\n\nC. In addition, in no case shall any (i) state department, agency, or other\nstate entity or (ii) state official, officer, or employee in performing the\nduties of his position furnish an IOU in exchange for any good or service, as a\nmeans to pay for any good or service, or in lieu of a payment on a debt.\n\nHISTORY: 2015, c. 673.","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}}