{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-1015.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-1015.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-1015.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-1015.html"}],"law_id":65904,"edition_id":1,"section_id":65904,"structure_id":14810,"section_number":"23.1-1015","catch_line":"Covered institutions; operational authority; financial operations; power to issue bonds, notes, or other obligations","history":"2005, cc. 933, 945, \u00a7 23-38.108; 2016, c. 588.","full_text":"A\n\nNotwithstanding the provisions of § 23.1-1119, a covered institution may (i) issue bonds, notes, or other obligations for any purpose that is consistent with its institutional mission, including to (a) finance or refinance any project, (b) appropriately manage operational cash flows, (c) provide for short-term financing, (d) refund bonds, notes, or other obligations issued by or on behalf of such institution, or otherwise, including bonds, notes, or other obligations or obligations not then subject to redemption, and (ii) guarantee, assume, or otherwise agree to pay, in whole or in part, indebtedness issued by such institution or any affiliated entity for managing operational cash flows or resulting in the acquisition or construction of facilities for the benefit of such institution or the refinancing thereof.B\n\nNothing in this article shall preclude a covered institution from participation in any financing program or bond issue established and implemented by the Commonwealth or any agency of the Commonwealth, including (i) any financing program or bond issue under Article X, Section 9 (b) or 9 (c) of the Constitution of Virginia and (ii) any financing program or bond issue under Article X, Section 9 (d) of the Constitution of Virginia undertaken by the Treasury Board, the Virginia College Building Authority, or the Virginia Public Building Authority if such institution is otherwise eligible and approved to participate and is otherwise able to fulfill any requirements that may be imposed upon it by virtue of its participation.C\n\nNotwithstanding Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2, Chapter 11 (§ 23.1-1100 et seq.), and § 23.1-2205, each covered institution may issue bonds, notes, or other obligations consistent with debt capacity and management policies and guidelines established by its governing board without (i) obtaining the consent of any legislative body, elected official, commission, board, bureau, political subdivision, or agency of the Commonwealth; (ii) any proceedings or conditions other than those specifically required by this article; (iii) the approval required by the provisions of Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2; or (iv) any regulation or procedure, including a review or approval procedure, adopted pursuant to Chapter 11 (§ 23.1-1100 et seq.).D\n\nEach covered institution may issue such types of bonds, notes, or other obligations as it determines are appropriate and consistent with debt capacity and management policies and guidelines established by its governing board, including bonds, notes, or other obligations payable as to principal and interest from any one or more of the following sources: (i) its revenues generally; (ii) income and revenues derived from the operation, sale, or lease of a particular project, whether or not it is financed or refinanced from the proceeds of such bonds, notes, or other obligations; (iii) funds realized from the enforcement of security interests or other liens or obligations securing such bonds, notes, or other obligations; (iv) proceeds from the sale of bonds, notes, or other obligations; (v) payments under letters of credit, policies of municipal bond insurance, guarantees, or other credit enhancements; (vi) any reserve or sinking funds created to secure such payment; (vii) accounts receivable of such institution; or (viii) other available funds of such institution.E\n\nAny bonds, notes, or other obligations may be supported by any grant, contribution, or appropriation from a participating political subdivision, the covered institution, the Commonwealth, any political subdivision, agency, or instrumentality of the Commonwealth, any federal agency, or any unit, private corporation, partnership, association, or individual.F\n\nBonds, notes, or other obligations of a covered institution are for an essential public and governmental purpose.G\n\nIt is lawful for any bank or trust company within or outside the Commonwealth to serve as depository of the proceeds of bonds, notes, or other obligations or other revenues of a covered institution, furnish indemnifying bonds, notes, or other obligations, or pledge such securities as may be required by such institution, provided that any such deposits are collateralized in accordance with the Security for Public Deposits Act (§ 2.2-4400 et seq.) in the case of a bank or savings institution or Article 3 (§ 6.2-1047 et seq.) of Chapter 10 of Title 6.2 in the case of a trust company.","order_by":null,"text":{"0":{"id":239493,"text":"Notwithstanding the provisions of § 23.1-1119, a covered institution may (i) issue bonds, notes, or other obligations for any purpose that is consistent with its institutional mission, including to (a) finance or refinance any project, (b) appropriately manage operational cash flows, (c) provide for short-term financing, (d) refund bonds, notes, or other obligations issued by or on behalf of such institution, or otherwise, including bonds, notes, or other obligations or obligations not then subject to redemption, and (ii) guarantee, assume, or otherwise agree to pay, in whole or in part, indebtedness issued by such institution or any affiliated entity for managing operational cash flows or resulting in the acquisition or construction of facilities for the benefit of such institution or the refinancing thereof.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":239494,"text":"Nothing in this article shall preclude a covered institution from participation in any financing program or bond issue established and implemented by the Commonwealth or any agency of the Commonwealth, including (i) any financing program or bond issue under Article X, Section 9 (b) or 9 (c) of the Constitution of Virginia and (ii) any financing program or bond issue under Article X, Section 9 (d) of the Constitution of Virginia undertaken by the Treasury Board, the Virginia College Building Authority, or the Virginia Public Building Authority if such institution is otherwise eligible and approved to participate and is otherwise able to fulfill any requirements that may be imposed upon it by virtue of its participation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":239495,"text":"Notwithstanding Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2, Chapter 11 (§ 23.1-1100 et seq.), and § 23.1-2205, each covered institution may issue bonds, notes, or other obligations consistent with debt capacity and management policies and guidelines established by its governing board without (i) obtaining the consent of any legislative body, elected official, commission, board, bureau, political subdivision, or agency of the Commonwealth; (ii) any proceedings or conditions other than those specifically required by this article; (iii) the approval required by the provisions of Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2; or (iv) any regulation or procedure, including a review or approval procedure, adopted pursuant to Chapter 11 (§ 23.1-1100 et seq.).","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":239496,"text":"Each covered institution may issue such types of bonds, notes, or other obligations as it determines are appropriate and consistent with debt capacity and management policies and guidelines established by its governing board, including bonds, notes, or other obligations payable as to principal and interest from any one or more of the following sources: (i) its revenues generally; (ii) income and revenues derived from the operation, sale, or lease of a particular project, whether or not it is financed or refinanced from the proceeds of such bonds, notes, or other obligations; (iii) funds realized from the enforcement of security interests or other liens or obligations securing such bonds, notes, or other obligations; (iv) proceeds from the sale of bonds, notes, or other obligations; (v) payments under letters of credit, policies of municipal bond insurance, guarantees, or other credit enhancements; (vi) any reserve or sinking funds created to secure such payment; (vii) accounts receivable of such institution; or (viii) other available funds of such institution.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":239497,"text":"Any bonds, notes, or other obligations may be supported by any grant, contribution, or appropriation from a participating political subdivision, the covered institution, the Commonwealth, any political subdivision, agency, or instrumentality of the Commonwealth, any federal agency, or any unit, private corporation, partnership, association, or individual.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":239498,"text":"Bonds, notes, or other obligations of a covered institution are for an essential public and governmental purpose.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":239499,"text":"It is lawful for any bank or trust company within or outside the Commonwealth to serve as depository of the proceeds of bonds, notes, or other obligations or other revenues of a covered institution, furnish indemnifying bonds, notes, or other obligations, or pledge such securities as may be required by such institution, provided that any such deposits are collateralized in accordance with the Security for Public Deposits Act (§ 2.2-4400 et seq.) in the case of a bank or savings institution or Article 3 (§ 6.2-1047 et seq.) of Chapter 10 of Title 6.2 in the case of a trust company.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":14810,"edition_id":1,"name":"Restructured Financial and Administrative Authority; Covered Institutions; Management Agreements","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":14809,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185539,"object_type":"structure","relational_id":14810,"identifier":"4","token":"23.1\/III\/10\/4","url":"\/23.1\/III\/10\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14809,"edition_id":1,"name":"Restructured Higher Education Financial and Administrative Operations Act","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":14060,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185515,"object_type":"structure","relational_id":14809,"identifier":"10","token":"23.1\/III\/10","url":"\/23.1\/III\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14060,"edition_id":1,"name":"Management and Financing","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:46:44","date_modified":"2026-06-26 03:46:44","permalink":{"id":185513,"object_type":"structure","relational_id":14060,"identifier":"III","token":"23.1\/III","url":"\/23.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72164,"structure_id":14810,"section_number":"23.1-1004","catch_line":"Management agreement; eligibility and application","url":"\/23.1-1004\/","token":"23.1\/III\/10\/4\/23.1-1004","metadata":false},{"id":83668,"structure_id":14810,"section_number":"23.1-1005","catch_line":"Approval of a management agreement","url":"\/23.1-1005\/","token":"23.1\/III\/10\/4\/23.1-1005","metadata":false},{"id":56640,"structure_id":14810,"section_number":"23.1-1006","catch_line":"Management agreement; contents and scope","url":"\/23.1-1006\/","token":"23.1\/III\/10\/4\/23.1-1006","metadata":false},{"id":63108,"structure_id":14810,"section_number":"23.1-1007","catch_line":"Management agreement; duration and oversight","url":"\/23.1-1007\/","token":"23.1\/III\/10\/4\/23.1-1007","metadata":false},{"id":58529,"structure_id":14810,"section_number":"23.1-1008","catch_line":"Covered institutions; operational authority generally","url":"\/23.1-1008\/","token":"23.1\/III\/10\/4\/23.1-1008","metadata":false},{"id":68969,"structure_id":14810,"section_number":"23.1-1009","catch_line":"Covered institutions; operational authority; projects","url":"\/23.1-1009\/","token":"23.1\/III\/10\/4\/23.1-1009","metadata":false},{"id":71430,"structure_id":14810,"section_number":"23.1-1010","catch_line":"Covered institutions; operational authority; creation of entities and participation in joint ventures","url":"\/23.1-1010\/","token":"23.1\/III\/10\/4\/23.1-1010","metadata":false},{"id":66142,"structure_id":14810,"section_number":"23.1-1011","catch_line":"Covered institutions; operational authority; campus police","url":"\/23.1-1011\/","token":"23.1\/III\/10\/4\/23.1-1011","metadata":false},{"id":69766,"structure_id":14810,"section_number":"23.1-1012","catch_line":"Covered institutions; operational authority; financial operations generally","url":"\/23.1-1012\/","token":"23.1\/III\/10\/4\/23.1-1012","metadata":false},{"id":79752,"structure_id":14810,"section_number":"23.1-1013","catch_line":"Covered institutions; operational authority; financial operations; investment of operating funds","url":"\/23.1-1013\/","token":"23.1\/III\/10\/4\/23.1-1013","metadata":false},{"id":68235,"structure_id":14810,"section_number":"23.1-1014","catch_line":"Covered institutions; operational authority; financial operations; financing and indebtedness","url":"\/23.1-1014\/","token":"23.1\/III\/10\/4\/23.1-1014","metadata":false},{"id":65904,"structure_id":14810,"section_number":"23.1-1015","catch_line":"Covered institutions; operational authority; financial operations; power to issue bonds, notes, or other obligations","url":"\/23.1-1015\/","token":"23.1\/III\/10\/4\/23.1-1015","metadata":false},{"id":86805,"structure_id":14810,"section_number":"23.1-1016","catch_line":"Covered institutions; operational authority; financial operations; capital projects","url":"\/23.1-1016\/","token":"23.1\/III\/10\/4\/23.1-1016","metadata":false},{"id":74516,"structure_id":14810,"section_number":"23.1-1017","catch_line":"Covered institutions; operational authority; procurement","url":"\/23.1-1017\/","token":"23.1\/III\/10\/4\/23.1-1017","metadata":false},{"id":79632,"structure_id":14810,"section_number":"23.1-1018","catch_line":"Covered institutions; operational authority; information technology","url":"\/23.1-1018\/","token":"23.1\/III\/10\/4\/23.1-1018","metadata":false},{"id":68739,"structure_id":14810,"section_number":"23.1-1019","catch_line":"Covered institutions; operational authority; property, grants, and loans","url":"\/23.1-1019\/","token":"23.1\/III\/10\/4\/23.1-1019","metadata":false},{"id":61212,"structure_id":14810,"section_number":"23.1-1020","catch_line":"Covered institutions; operational authority; human resources; covered employees generally","url":"\/23.1-1020\/","token":"23.1\/III\/10\/4\/23.1-1020","metadata":false},{"id":78983,"structure_id":14810,"section_number":"23.1-1021","catch_line":"Covered institutions; operational authority; human resources; establishment of a human resources program","url":"\/23.1-1021\/","token":"23.1\/III\/10\/4\/23.1-1021","metadata":false},{"id":59817,"structure_id":14810,"section_number":"23.1-1022","catch_line":"Covered institutions; operational authority; human resources; election by certain covered employees","url":"\/23.1-1022\/","token":"23.1\/III\/10\/4\/23.1-1022","metadata":false},{"id":67808,"structure_id":14810,"section_number":"23.1-1023","catch_line":"Covered institutions; operational authority; human resources; grievance procedures","url":"\/23.1-1023\/","token":"23.1\/III\/10\/4\/23.1-1023","metadata":false},{"id":75091,"structure_id":14810,"section_number":"23.1-1024","catch_line":"Covered institutions; operational authority; human resources; miscellaneous personnel matters","url":"\/23.1-1024\/","token":"23.1\/III\/10\/4\/23.1-1024","metadata":false},{"id":76407,"structure_id":14810,"section_number":"23.1-1025","catch_line":"Covered institutions; operational authority; human resources; certain insurance plans","url":"\/23.1-1025\/","token":"23.1\/III\/10\/4\/23.1-1025","metadata":false},{"id":64122,"structure_id":14810,"section_number":"23.1-1026","catch_line":"Covered institutions; operational authority; human resources; severance policies","url":"\/23.1-1026\/","token":"23.1\/III\/10\/4\/23.1-1026","metadata":false},{"id":82551,"structure_id":14810,"section_number":"23.1-1027","catch_line":"Covered institutions; duties; tuition, fees, rentals, and other charges","url":"\/23.1-1027\/","token":"23.1\/III\/10\/4\/23.1-1027","metadata":false},{"id":73063,"structure_id":14810,"section_number":"23.1-1028","catch_line":"Covered institutions; duties; leases of property","url":"\/23.1-1028\/","token":"23.1\/III\/10\/4\/23.1-1028","metadata":false}],"previous_section":{"id":68235,"structure_id":14810,"section_number":"23.1-1014","catch_line":"Covered institutions; operational authority; financial operations; financing and indebtedness","url":"\/23.1-1014\/","token":"23.1\/III\/10\/4\/23.1-1014","metadata":false},"next_section":{"id":86805,"structure_id":14810,"section_number":"23.1-1016","catch_line":"Covered institutions; operational authority; financial operations; capital projects","url":"\/23.1-1016\/","token":"23.1\/III\/10\/4\/23.1-1016","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-1015\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapters 933<\/a> and 945<\/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 2016, chapter 588<\/a>.<\/p>","references":false,"refers_to":[{"id":56392,"section_number":"2.2-2415","catch_line":"Treasury Board membership; chairman; quorum; reimbursement for expenses","order_by":null,"url":"\/2.2-2415\/"},{"id":63923,"section_number":"2.2-4400","catch_line":"Short title; declaration of intent; applicability","order_by":null,"url":"\/2.2-4400\/"},{"id":55320,"section_number":"23.1-1100","catch_line":"Definitions","order_by":null,"url":"\/23.1-1100\/"},{"id":55164,"section_number":"23.1-1119","catch_line":"Payment of interest on bonds of the Commonwealth held by public institutions of higher education and private institutions of higher education","order_by":null,"url":"\/23.1-1119\/"},{"id":57708,"section_number":"23.1-2205","catch_line":"Secured obligations","order_by":null,"url":"\/23.1-2205\/"},{"id":65489,"section_number":"6.2-1047","catch_line":"Definitions","order_by":null,"url":"\/6.2-1047\/"}],"permalink":{"id":185585,"object_type":"law","relational_id":65904,"identifier":"23.1-1015","token":"23.1\/III\/10\/4\/23.1-1015","url":"\/23.1-1015\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-1015\/","token":"23.1\/III\/10\/4\/23.1-1015","dublin_core":{"Title":"Covered institutions; operational authority; financial operations; power to issue bonds, notes, or other obligations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-1015","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding the provisions of § 23.1-1119<\/a>, a covered institution<\/span> may (i) issue<\/span> bonds<\/span>, notes, or other obligations<\/span> for any purpose that is consistent with its institutional mission, including to (a) finance or refinance any project<\/span>, (b) appropriately manage operational cash flows, (c) provide for short-term financing, (d) refund bonds<\/span>, notes, or other obligations<\/span> issued by or on behalf of such institution, or otherwise, including bonds<\/span>, notes, or other obligations<\/span> or obligations not then subject to redemption<\/span>, and (ii) guarantee, assume, or otherwise agree to pay, in whole or in part, indebtedness issued by such institution or any affiliated entity for managing operational cash flows or resulting in the acquisition or construction of facilities<\/span> for the benefit of such institution or the refinancing thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Nothing in this article shall preclude a covered institution<\/span> from participation in any financing program or bond<\/span> issue<\/span> established and implemented by the Commonwealth or any agency of the Commonwealth, including (i) any financing program or bond<\/span> issue<\/span> under Article X, Section 9 (b) or 9 (c) of the Constitution of Virginia and (ii) any financing program or bond<\/span> issue<\/span> under Article X, Section 9 (d) of the Constitution of Virginia undertaken by the Treasury Board, the Virginia College Building Authority, or the Virginia Public Building Authority if such institution is otherwise eligible and approved to participate and is otherwise able to fulfill any requirements that may be imposed upon it by virtue of its participation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding Article 8 (§ 2.2-2415<\/a> et seq.) of Chapter 24 of Title 2.2, Chapter 11 (§ 23.1-1100<\/a> et seq.), and § 23.1-2205<\/a>, each covered institution<\/span> may issue<\/span> bonds<\/span>, notes, or other obligations<\/span> consistent with debt capacity and management policies and guidelines established by its governing board<\/span> without (i) obtaining the consent of any legislative body, elected official, commission, board, bureau, political subdivision, or agency of the Commonwealth; (ii) any proceedings or conditions other than those specifically required by this article; (iii) the approval required by the provisions of Article 8 (§ 2.2-2415<\/a> et seq.) of Chapter 24 of Title 2.2; or (iv) any regulation or procedure, including a review or approval procedure, adopted pursuant to Chapter 11 (§ 23.1-1100<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Each covered institution<\/span> may issue<\/span> such types of bonds<\/span>, notes, or other obligations<\/span> as it determines are appropriate and consistent with debt capacity and management policies and guidelines established by its governing board<\/span>, including bonds<\/span>, notes, or other obligations<\/span> payable as to principal and interest from any one or more of the following sources: (i) its revenues generally; (ii) income and revenues derived from the operation, sale, or lease of a particular project<\/span>, whether or not it is financed or refinanced from the proceeds of such bonds<\/span>, notes, or other obligations<\/span>; (iii) funds realized from the enforcement of security interests or other liens<\/span> or obligations securing such bonds<\/span>, notes, or other obligations<\/span>; (iv) proceeds from the sale of bonds<\/span>, notes, or other obligations<\/span>; (v) payments under letters of credit, policies of municipal bond<\/span> insurance, guarantees, or other credit enhancements; (vi) any reserve or sinking funds created to secure such payment; (vii) accounts receivable of such institution; or (viii) other available funds of such institution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any bonds<\/span>, notes, or other obligations<\/span> may be supported by any grant, contribution, or appropriation from a participating political subdivision, the covered institution<\/span>, the Commonwealth, any political subdivision, agency, or instrumentality of the Commonwealth, any federal agency, or any unit, private corporation, partnership, association, or individual. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Bonds<\/span>, notes, or other obligations<\/span> of a covered institution<\/span> are for an essential public and governmental purpose. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> It is lawful for any bank or trust company within or outside the Commonwealth to serve as depository of the proceeds of bonds<\/span>, notes, or other obligations<\/span> or other revenues of a covered institution<\/span>, furnish indemnifying bonds<\/span>, notes, or other obligations<\/span>, or pledge such securities as may be required by such institution, provided that any such deposits are collateralized in accordance with the Security for Public Deposits Act (§ 2.2-4400<\/a> et seq.) in the case of a bank or savings institution or Article 3 (§ 6.2-1047<\/a> et seq.) of Chapter 10 of Title 6.2 in the case of a trust company. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCOVERED INSTITUTIONS; OPERATIONAL AUTHORITY; FINANCIAL OPERATIONS; POWER TO\nISSUE BONDS, NOTES, OR OTHER OBLIGATIONS (\u00a7 23.1-1015)\n\nA. Notwithstanding the provisions of § 23.1-1119, a covered institution may\n(i) issue bonds, notes, or other obligations for any purpose that is consistent\nwith its institutional mission, including to (a) finance or refinance any\nproject, (b) appropriately manage operational cash flows, (c) provide for\nshort-term financing, (d) refund bonds, notes, or other obligations issued by or\non behalf of such institution, or otherwise, including bonds, notes, or other\nobligations or obligations not then subject to redemption, and (ii) guarantee,\nassume, or otherwise agree to pay, in whole or in part, indebtedness issued by\nsuch institution or any affiliated entity for managing operational cash flows or\nresulting in the acquisition or construction of facilities for the benefit of\nsuch institution or the refinancing thereof.\n\nB. Nothing in this article shall preclude a covered institution from\nparticipation in any financing program or bond issue established and implemented\nby the Commonwealth or any agency of the Commonwealth, including (i) any\nfinancing program or bond issue under Article X, Section 9 (b) or 9 (c) of the\nConstitution of Virginia and (ii) any financing program or bond issue under\nArticle X, Section 9 (d) of the Constitution of Virginia undertaken by the\nTreasury Board, the Virginia College Building Authority, or the Virginia Public\nBuilding Authority if such institution is otherwise eligible and approved to\nparticipate and is otherwise able to fulfill any requirements that may be\nimposed upon it by virtue of its participation.\n\nC. Notwithstanding Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title\n2.2, Chapter 11 (§ 23.1-1100 et seq.), and § 23.1-2205, each covered\ninstitution may issue bonds, notes, or other obligations consistent with debt\ncapacity and management policies and guidelines established by its governing\nboard without (i) obtaining the consent of any legislative body, elected\nofficial, commission, board, bureau, political subdivision, or agency of the\nCommonwealth; (ii) any proceedings or conditions other than those specifically\nrequired by this article; (iii) the approval required by the provisions of\nArticle 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2; or (iv) any\nregulation or procedure, including a review or approval procedure, adopted\npursuant to Chapter 11 (§ 23.1-1100 et seq.).\n\nD. Each covered institution may issue such types of bonds, notes, or other\nobligations as it determines are appropriate and consistent with debt capacity\nand management policies and guidelines established by its governing board,\nincluding bonds, notes, or other obligations payable as to principal and\ninterest from any one or more of the following sources: (i) its revenues\ngenerally; (ii) income and revenues derived from the operation, sale, or lease\nof a particular project, whether or not it is financed or refinanced from the\nproceeds of such bonds, notes, or other obligations; (iii) funds realized from\nthe enforcement of security interests or other liens or obligations securing\nsuch bonds, notes, or other obligations; (iv) proceeds from the sale of bonds,\nnotes, or other obligations; (v) payments under letters of credit, policies of\nmunicipal bond insurance, guarantees, or other credit enhancements; (vi) any\nreserve or sinking funds created to secure such payment; (vii) accounts\nreceivable of such institution; or (viii) other available funds of such\ninstitution.\n\nE. Any bonds, notes, or other obligations may be supported by any grant,\ncontribution, or appropriation from a participating political subdivision, the\ncovered institution, the Commonwealth, any political subdivision, agency, or\ninstrumentality of the Commonwealth, any federal agency, or any unit, private\ncorporation, partnership, association, or individual.\n\nF. Bonds, notes, or other obligations of a covered institution are for an\nessential public and governmental purpose.\n\nG. It is lawful for any bank or trust company within or outside the Commonwealth\nto serve as depository of the proceeds of bonds, notes, or other obligations or\nother revenues of a covered institution, furnish indemnifying bonds, notes, or\nother obligations, or pledge such securities as may be required by such\ninstitution, provided that any such deposits are collateralized in accordance\nwith the Security for Public Deposits Act (§ 2.2-4400 et seq.) in the case\nof a bank or savings institution or Article 3 (§ 6.2-1047 et seq.) of\nChapter 10 of Title 6.2 in the case of a trust company.\n\nHISTORY: 2005, cc. 933, 945, \u00a7 23-38.108; 2016, c. 588.","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}}