{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/22.1-167.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/22.1-167.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/22.1-167.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/22.1-167.2.html"}],"law_id":85235,"edition_id":1,"section_id":85235,"structure_id":14222,"section_number":"22.1-167.2","catch_line":"Security for payment; appropriations","history":"1998, cc. 4, 900.","full_text":"A\n\nThe Authority is authorized to issue bonds to finance and refinance acquisition of bonds, notes and other obligations of counties, cities and towns (local school bonds) issued for the purpose of financing and refinancing capital projects for school purposes and to pledge to the bonds all or any combination of the following sources: (i) payments of principal and interest on the local school bonds purchased by the Authority; (ii) payments to the localities by the Commonwealth as contemplated under the provisions of § 15.2-2659 (state aid intercept) of the Code of Virginia; (iii) funds in the Literary Fund available and appropriated for such purpose; and (iv) any funds in the general fund of the Commonwealth appropriated for such purpose.B\n\nThe Governor’s Budget Bill presented each year to the General Assembly shall include an appropriation to the Authority of a sum sufficient first, from funds in the Literary Fund available for such purpose, and second, from the general fund of the Commonwealth, to cure any shortfall in pledged primary revenues on any debt service payment date on the bonds of the Authority described by this section. A shortfall in pledged primary revenues shall exist when the sum of the payments made on local school bonds due on or before such date and any proceeds derived from the implementation of § 15.2-2659 (state aid intercept) of the Code of Virginia as of such date is less than required to pay the debt service due on the Authority’s bonds on such date.C\n\nThe Literary Fund and the general fund of the Commonwealth shall be subrogated to the rights of the Authority to the extent of any such funds paid to the Authority and shall be entitled to enforce the Authority’s remedies with respect to the local school bonds and to full recovery of the amount of such shortfall.D\n\nOn or before September 30 of each year, the Authority shall submit to the Governor and the chairmen of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations a report as of the end of the prior fiscal year detailing the total amount of the Authority’s outstanding bonds secured by appropriations as described in subsection B. The report shall also describe any instances where any such appropriation has been used.","order_by":null,"text":{"0":{"id":305475,"text":"The Authority is authorized to issue bonds to finance and refinance acquisition of bonds, notes and other obligations of counties, cities and towns (local school bonds) issued for the purpose of financing and refinancing capital projects for school purposes and to pledge to the bonds all or any combination of the following sources: (i) payments of principal and interest on the local school bonds purchased by the Authority; (ii) payments to the localities by the Commonwealth as contemplated under the provisions of § 15.2-2659 (state aid intercept) of the Code of Virginia; (iii) funds in the Literary Fund available and appropriated for such purpose; and (iv) any funds in the general fund of the Commonwealth appropriated for such purpose.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":305476,"text":"The Governor’s Budget Bill presented each year to the General Assembly shall include an appropriation to the Authority of a sum sufficient first, from funds in the Literary Fund available for such purpose, and second, from the general fund of the Commonwealth, to cure any shortfall in pledged primary revenues on any debt service payment date on the bonds of the Authority described by this section. A shortfall in pledged primary revenues shall exist when the sum of the payments made on local school bonds due on or before such date and any proceeds derived from the implementation of § 15.2-2659 (state aid intercept) of the Code of Virginia as of such date is less than required to pay the debt service due on the Authority’s bonds on such date.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":305477,"text":"The Literary Fund and the general fund of the Commonwealth shall be subrogated to the rights of the Authority to the extent of any such funds paid to the Authority and shall be entitled to enforce the Authority’s remedies with respect to the local school bonds and to full recovery of the amount of such shortfall.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":305478,"text":"On or before September 30 of each year, the Authority shall submit to the Governor and the chairmen of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations a report as of the end of the prior fiscal year detailing the total amount of the Authority’s outstanding bonds secured by appropriations as described in subsection B. The report shall also describe any instances where any such appropriation has been used.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":14222,"edition_id":1,"name":"Virginia Public School Authority","identifier":"11","label":"chapter","depth":2,"order_by":1,"parent_id":12823,"metadata":{},"date_created":"2026-06-26 03:47:21","date_modified":"2026-06-26 03:47:21","permalink":{"id":181141,"object_type":"structure","relational_id":14222,"identifier":"11","token":"22.1\/11","url":"\/22.1\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12823,"edition_id":1,"name":"Education","identifier":"22.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":180949,"object_type":"structure","relational_id":12823,"identifier":"22.1","token":"22.1","url":"\/22.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60646,"structure_id":14222,"section_number":"22.1-162","catch_line":"Definitions","url":"\/22.1-162\/","token":"22.1\/11\/22.1-162","metadata":false},{"id":55683,"structure_id":14222,"section_number":"22.1-163","catch_line":"Authority created; public body corporate and agency of Commonwealth","url":"\/22.1-163\/","token":"22.1\/11\/22.1-163","metadata":false},{"id":68781,"structure_id":14222,"section_number":"22.1-164","catch_line":"Board of Commissioners; membership; terms; compensation and expenses; chairman and vice-chairman; quorum; employees, agents, etc","url":"\/22.1-164\/","token":"22.1\/11\/22.1-164","metadata":false},{"id":79420,"structure_id":14222,"section_number":"22.1-165","catch_line":"Management and administration of moneys, etc., transferred from Literary Fund","url":"\/22.1-165\/","token":"22.1\/11\/22.1-165","metadata":false},{"id":69519,"structure_id":14222,"section_number":"22.1-166","catch_line":"Purchase and sale of local school bonds","url":"\/22.1-166\/","token":"22.1\/11\/22.1-166","metadata":false},{"id":61249,"structure_id":14222,"section_number":"22.1-166.1","catch_line":"Loans to local school boards","url":"\/22.1-166.1\/","token":"22.1\/11\/22.1-166.1","metadata":false},{"id":71860,"structure_id":14222,"section_number":"22.1-166.2","catch_line":"Grants to local school boards","url":"\/22.1-166.2\/","token":"22.1\/11\/22.1-166.2","metadata":false},{"id":78885,"structure_id":14222,"section_number":"22.1-167","catch_line":"Issuance of bonds of Authority","url":"\/22.1-167\/","token":"22.1\/11\/22.1-167","metadata":false},{"id":73854,"structure_id":14222,"section_number":"22.1-167.1","catch_line":"Refunding issues; pass-through of savings realized","url":"\/22.1-167.1\/","token":"22.1\/11\/22.1-167.1","metadata":false},{"id":85235,"structure_id":14222,"section_number":"22.1-167.2","catch_line":"Security for payment; appropriations","url":"\/22.1-167.2\/","token":"22.1\/11\/22.1-167.2","metadata":false},{"id":68625,"structure_id":14222,"section_number":"22.1-167.3","catch_line":"Bonds or notes issued for the purpose of making grants; security for payment; appropriations","url":"\/22.1-167.3\/","token":"22.1\/11\/22.1-167.3","metadata":false},{"id":73276,"structure_id":14222,"section_number":"22.1-168","catch_line":"Security for payment and bonds; provisions of trust indenture or resolution of Board","url":"\/22.1-168\/","token":"22.1\/11\/22.1-168","metadata":false},{"id":80085,"structure_id":14222,"section_number":"22.1-168.1","catch_line":"Reserve fund; limitations","url":"\/22.1-168.1\/","token":"22.1\/11\/22.1-168.1","metadata":false},{"id":59087,"structure_id":14222,"section_number":"22.1-169","catch_line":"Investment of funds","url":"\/22.1-169\/","token":"22.1\/11\/22.1-169","metadata":false},{"id":69727,"structure_id":14222,"section_number":"22.1-170","catch_line":"Repayments to Literary Fund","url":"\/22.1-170\/","token":"22.1\/11\/22.1-170","metadata":false},{"id":74494,"structure_id":14222,"section_number":"22.1-171","catch_line":"Powers of Authority enumerated","url":"\/22.1-171\/","token":"22.1\/11\/22.1-171","metadata":false},{"id":72150,"structure_id":14222,"section_number":"22.1-172","catch_line":"Bonds exempt from taxation","url":"\/22.1-172\/","token":"22.1\/11\/22.1-172","metadata":false},{"id":72965,"structure_id":14222,"section_number":"22.1-173","catch_line":"Bonds legal investments","url":"\/22.1-173\/","token":"22.1\/11\/22.1-173","metadata":false},{"id":77783,"structure_id":14222,"section_number":"22.1-174","catch_line":"Jurisdiction of suits against Authority; service of process","url":"\/22.1-174\/","token":"22.1\/11\/22.1-174","metadata":false},{"id":55435,"structure_id":14222,"section_number":"22.1-175","catch_line":"Transfers from Literary Fund to Authority","url":"\/22.1-175\/","token":"22.1\/11\/22.1-175","metadata":false}],"previous_section":{"id":73854,"structure_id":14222,"section_number":"22.1-167.1","catch_line":"Refunding issues; pass-through of savings realized","url":"\/22.1-167.1\/","token":"22.1\/11\/22.1-167.1","metadata":false},"next_section":{"id":68625,"structure_id":14222,"section_number":"22.1-167.3","catch_line":"Bonds or notes issued for the purpose of making grants; security for payment; appropriations","url":"\/22.1-167.3\/","token":"22.1\/11\/22.1-167.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/22.1-167.2\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapters 4<\/a> and 900<\/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":[{"id":78015,"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","order_by":null,"url":"\/15.2-2659\/"}],"permalink":{"id":181179,"object_type":"law","relational_id":85235,"identifier":"22.1-167.2","token":"22.1\/11\/22.1-167.2","url":"\/22.1-167.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/22.1-167.2\/","token":"22.1\/11\/22.1-167.2","dublin_core":{"Title":"Security for payment; appropriations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 22.1-167.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Authority<\/span> is authorized to issue<\/span> bonds to finance and refinance acquisition of bonds, notes and other obligations of counties, cities and towns (local school bonds<\/span>) issued for the purpose of financing and refinancing capital projects for school purposes and to pledge to the bonds all or any combination of the following sources: (i) payments of principal and interest on the local school bonds<\/span> purchased by the Authority<\/span>; (ii) payments to the localities by the Commonwealth as contemplated under the provisions of § 15.2-2659<\/a> (state aid intercept) of the Code of Virginia; (iii) funds in the Literary Fund available and appropriated for such purpose; and (iv) any funds in the general fund of the Commonwealth appropriated for such purpose. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Governor’s Budget Bill presented each year to the General Assembly shall include an appropriation to the Authority of a sum sufficient first, from funds in the Literary Fund available for such purpose, and second, from the general fund of the Commonwealth, to cure any shortfall in pledged primary revenues on any debt service payment date on the bonds of the Authority<\/span> described by this section. A shortfall in pledged primary revenues shall exist when the sum of the payments made on local school bonds<\/span> due on or before such date and any proceeds derived from the implementation of § 15.2-2659<\/a> (state aid intercept) of the Code of Virginia as of such date is less than required to pay the debt service due on the Authority’s bonds on such date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Literary Fund and the general fund of the Commonwealth shall be subrogated to the rights of the Authority to the extent of any such funds paid to the Authority and shall be entitled to enforce the Authority’s remedies with respect to the local school bonds<\/span> and to full recovery of the amount of such shortfall. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> On or before September 30 of each year, the Authority shall submit to the Governor and the chairmen of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations a report as of the end of the prior fiscal year detailing the total amount of the Authority’s outstanding bonds secured by appropriations as described in subsection B. The report shall also describe any instances where any such appropriation has been used. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSECURITY FOR PAYMENT; APPROPRIATIONS (\u00a7 22.1-167.2)\n\nA. The Authority is authorized to issue bonds to finance and refinance\nacquisition of bonds, notes and other obligations of counties, cities and towns\n(local school bonds) issued for the purpose of financing and refinancing capital\nprojects for school purposes and to pledge to the bonds all or any combination\nof the following sources: (i) payments of principal and interest on the local\nschool bonds purchased by the Authority; (ii) payments to the localities by the\nCommonwealth as contemplated under the provisions of § 15.2-2659 (state aid\nintercept) of the Code of Virginia; (iii) funds in the Literary Fund available\nand appropriated for such purpose; and (iv) any funds in the general fund of the\nCommonwealth appropriated for such purpose.\n\nB. The Governor’s Budget Bill presented each year to the General Assembly\nshall include an appropriation to the Authority of a sum sufficient first, from\nfunds in the Literary Fund available for such purpose, and second, from the\ngeneral fund of the Commonwealth, to cure any shortfall in pledged primary\nrevenues on any debt service payment date on the bonds of the Authority\ndescribed by this section. A shortfall in pledged primary revenues shall exist\nwhen the sum of the payments made on local school bonds due on or before such\ndate and any proceeds derived from the implementation of § 15.2-2659 (state\naid intercept) of the Code of Virginia as of such date is less than required to\npay the debt service due on the Authority’s bonds on such date.\n\nC. The Literary Fund and the general fund of the Commonwealth shall be\nsubrogated to the rights of the Authority to the extent of any such funds paid\nto the Authority and shall be entitled to enforce the Authority’s remedies\nwith respect to the local school bonds and to full recovery of the amount of\nsuch shortfall.\n\nD. On or before September 30 of each year, the Authority shall submit to the\nGovernor and the chairmen of the House Committee on Appropriations and the\nSenate Committee on Finance and Appropriations a report as of the end of the\nprior fiscal year detailing the total amount of the Authority’s\noutstanding bonds secured by appropriations as described in subsection B. The\nreport shall also describe any instances where any such appropriation has been\nused.\n\nHISTORY: 1998, cc. 4, 900.","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}}