{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/33.2-3809.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/33.2-3809.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/33.2-3809.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/33.2-3809.html"}],"law_id":61807,"edition_id":1,"section_id":61807,"structure_id":14024,"section_number":"33.2-3809","catch_line":"Bond issues; contesting validity of bonds","history":"2021, Sp. Sess. I, cc. 353, 354.","full_text":"A\n\nThe authority may at any time and from time to time issue bonds for any valid purpose, including the establishment of reserves and the payment of interest. For purposes of this chapter, “bonds” includes notes of any kind, interim certificates, refunding bonds, or any other evidence of obligation.B\n\nThe bonds of any issue shall be payable solely from the property or receipts of the authority, including but not limited to:1\n\nTaxes, rents, fees, charges, or other revenues payable to the authority;2\n\nPayments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements;3\n\nInvestment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement; and4\n\nProceeds of refunding bonds.C\n\nBonds shall be authorized by resolution of the authority and may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. The bonds shall:1\n\nBe issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds or as term bonds or both, not exceeding 40 years from their respective dates of issue;2\n\nBear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement;3\n\nBe payable at a time or times, in the denominations and form, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the resolution or trust agreement may provide;4\n\nBe payable in lawful money of the United States at a designated place;5\n\nBe subject to the terms of purchase, payment, redemption, refunding, or refinancing that the resolution or trust agreement provides;6\n\nBe executed by the manual or facsimile signatures of the officers of the authority designated by the authority, which signatures shall be valid at delivery even for one who has ceased to hold office; and7\n\nBe sold in the manner and upon the terms determined by the authority including private (negotiated) sale.D\n\nAny resolution or trust agreement may contain provisions that shall be a part of the contract with the holders of the bonds as to:1\n\nPledging, assigning, or directing the use, investment, or disposition of receipts of the authority or proceeds or benefits of any contract and conveying or otherwise securing any property rights;2\n\nSetting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof;3\n\nLimiting the purpose to which, or the investments in which, the proceeds of the sale of any issue of bonds may be applied and restrictions to investments of revenues or bond proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America;4\n\nLimiting the issuance of additional bonds and the terms upon which additional bonds may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds;5\n\nRefunding or refinancing outstanding bonds;6\n\nProviding a procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given;7\n\nDefining the acts or omissions that shall constitute a default in the duties of the authority to bondholders and providing the rights of or remedies for such holders in the event of a default, which may include provisions restricting individual right of action by bondholders;8\n\nProviding for guarantees, pledges of property, letters of credit, or other security or insurance for the benefit of the bondholders; and9\n\nAddressing any other matter relating to the bonds that the authority determines appropriate.E\n\nNo member of the authority, member of the board, or any person executing the bonds on behalf of the authority shall be liable personally for the bonds or subject to any personal liability by reason of the issuance of the bonds.F\n\nThe authority may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds.G\n\nA pledge by the authority of revenues as security for an issue of bonds shall be valid and binding from the time the pledge is made. The revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract, or otherwise against the authority, irrespective of whether the person has notice. No resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by the authority need be filed or recorded in any public record other than the records of the authority in order to perfect the lien against third persons, regardless of any contrary provision of public general or local law.H\n\nExcept to the extent restricted by an applicable resolution or trust agreement, any holder of bonds issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws of Virginia or by any applicable resolution or trust agreement.I\n\nThe authority may issue bonds to refund any of its bonds then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may be issued in one or more series in an amount in excess of that of the bonds to be refunded.J\n\nFor a period of 30 days after the date of the filing with the circuit court having jurisdiction over any of the political subdivisions that are members of the authority and in which the facility or any portion thereof being financed is located a certified copy of the initial resolution of the authority authorizing the issuance of bonds, any person in interest may contest the validity of the bonds, rates, rents, fees, and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility or any portion thereof being financed, the pledge of revenues pledged to payment of the bonds, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds, or any matter contained in, provided for, or done or to be done pursuant to the foregoing. If such contest is not given within the 30-day period, the authority to issue bonds, the validity of any other provision contained in the resolution, trust agreement, indenture, or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds, shall be conclusively presumed to have been legally taken, and no court shall have authority to inquire into such matters and no such contest shall thereafter be instituted.K\n\nUpon the delivery of any bonds reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds shall be conclusively presumed to be fully authorized by all of the laws of the Commonwealth and to have been sold, executed, and delivered by the authority in conformity with such laws, and the validity of the bonds shall not be questioned by a party plaintiff, a party defendant, the authority, or any other interested party in any court, anything in this chapter or in any other statutes to the contrary notwithstanding.","order_by":null,"text":{"0":{"id":225697,"text":"The authority may at any time and from time to time issue bonds for any valid purpose, including the establishment of reserves and the payment of interest. For purposes of this chapter, “bonds” includes notes of any kind, interim certificates, refunding bonds, or any other evidence of obligation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":225698,"text":"The bonds of any issue shall be payable solely from the property or receipts of the authority, including but not limited to:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":225699,"text":"Taxes, rents, fees, charges, or other revenues payable to the authority;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":225700,"text":"Payments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":225701,"text":"Investment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":225702,"text":"Proceeds of refunding bonds.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":225703,"text":"Bonds shall be authorized by resolution of the authority and may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. The bonds shall:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"7":{"id":225704,"text":"Be issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds or as term bonds or both, not exceeding 40 years from their respective dates of issue;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":225705,"text":"Bear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"9":{"id":225706,"text":"Be payable at a time or times, in the denominations and form, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the resolution or trust agreement may provide;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"10":{"id":225707,"text":"Be payable in lawful money of the United States at a designated place;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"11":{"id":225708,"text":"Be subject to the terms of purchase, payment, redemption, refunding, or refinancing that the resolution or trust agreement provides;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"12":{"id":225709,"text":"Be executed by the manual or facsimile signatures of the officers of the authority designated by the authority, which signatures shall be valid at delivery even for one who has ceased to hold office; and","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"13":{"id":225710,"text":"Be sold in the manner and upon the terms determined by the authority including private (negotiated) sale.","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"D"},"14":{"id":225711,"text":"Any resolution or trust agreement may contain provisions that shall be a part of the contract with the holders of the bonds as to:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C7","next_prefix":"D1"},"15":{"id":225712,"text":"Pledging, assigning, or directing the use, investment, or disposition of receipts of the authority or proceeds or benefits of any contract and conveying or otherwise securing any property rights;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"16":{"id":225713,"text":"Setting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"17":{"id":225714,"text":"Limiting the purpose to which, or the investments in which, the proceeds of the sale of any issue of bonds may be applied and restrictions to investments of revenues or bond proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"18":{"id":225715,"text":"Limiting the issuance of additional bonds and the terms upon which additional bonds may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"19":{"id":225716,"text":"Refunding or refinancing outstanding bonds;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"20":{"id":225717,"text":"Providing a procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"21":{"id":225718,"text":"Defining the acts or omissions that shall constitute a default in the duties of the authority to bondholders and providing the rights of or remedies for such holders in the event of a default, which may include provisions restricting individual right of action by bondholders;","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"22":{"id":225719,"text":"Providing for guarantees, pledges of property, letters of credit, or other security or insurance for the benefit of the bondholders; and","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"D9"},"23":{"id":225720,"text":"Addressing any other matter relating to the bonds that the authority determines appropriate.","type":"section","prefixes":["D","9"],"prefix":"9","entire_prefix":"D9","prefix_anchor":"D9","level":2,"prior_prefix":"D8","next_prefix":"E"},"24":{"id":225721,"text":"No member of the authority, member of the board, or any person executing the bonds on behalf of the authority shall be liable personally for the bonds or subject to any personal liability by reason of the issuance of the bonds.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D9","next_prefix":"F"},"25":{"id":225722,"text":"The authority may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"26":{"id":225723,"text":"A pledge by the authority of revenues as security for an issue of bonds shall be valid and binding from the time the pledge is made. The revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract, or otherwise against the authority, irrespective of whether the person has notice. No resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by the authority need be filed or recorded in any public record other than the records of the authority in order to perfect the lien against third persons, regardless of any contrary provision of public general or local law.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"27":{"id":225724,"text":"Except to the extent restricted by an applicable resolution or trust agreement, any holder of bonds issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws of Virginia or by any applicable resolution or trust agreement.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"28":{"id":225725,"text":"The authority may issue bonds to refund any of its bonds then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may be issued in one or more series in an amount in excess of that of the bonds to be refunded.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"29":{"id":225726,"text":"For a period of 30 days after the date of the filing with the circuit court having jurisdiction over any of the political subdivisions that are members of the authority and in which the facility or any portion thereof being financed is located a certified copy of the initial resolution of the authority authorizing the issuance of bonds, any person in interest may contest the validity of the bonds, rates, rents, fees, and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility or any portion thereof being financed, the pledge of revenues pledged to payment of the bonds, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds, or any matter contained in, provided for, or done or to be done pursuant to the foregoing. If such contest is not given within the 30-day period, the authority to issue bonds, the validity of any other provision contained in the resolution, trust agreement, indenture, or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds, shall be conclusively presumed to have been legally taken, and no court shall have authority to inquire into such matters and no such contest shall thereafter be instituted.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"30":{"id":225727,"text":"Upon the delivery of any bonds reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds shall be conclusively presumed to be fully authorized by all of the laws of the Commonwealth and to have been sold, executed, and delivered by the authority in conformity with such laws, and the validity of the bonds shall not be questioned by a party plaintiff, a party defendant, the authority, or any other interested party in any court, anything in this chapter or in any other statutes to the contrary notwithstanding.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J"}},"ancestry":[{"id":14024,"edition_id":1,"name":"New River Valley Passenger Rail Station Authority","identifier":"38","label":"chapter","depth":3,"order_by":1,"parent_id":12807,"metadata":{},"date_created":"2026-06-26 03:46:38","date_modified":"2026-06-26 03:46:38","permalink":{"id":207889,"object_type":"structure","relational_id":14024,"identifier":"38","token":"33.2\/IV\/38","url":"\/33.2\/IV\/38\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12807,"edition_id":1,"name":"Local and Regional Transportation","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12806,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":206943,"object_type":"structure","relational_id":12807,"identifier":"IV","token":"33.2\/IV","url":"\/33.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12806,"edition_id":1,"name":"Highways and Other Surface Transportation Systems","identifier":"33.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":204785,"object_type":"structure","relational_id":12806,"identifier":"33.2","token":"33.2","url":"\/33.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79563,"structure_id":14024,"section_number":"33.2-3800","catch_line":"Definitions","url":"\/33.2-3800\/","token":"33.2\/IV\/38\/33.2-3800","metadata":false},{"id":71086,"structure_id":14024,"section_number":"33.2-3801","catch_line":"Findings; purpose; governmental function","url":"\/33.2-3801\/","token":"33.2\/IV\/38\/33.2-3801","metadata":false},{"id":84983,"structure_id":14024,"section_number":"33.2-3802","catch_line":"Creation of the authority","url":"\/33.2-3802\/","token":"33.2\/IV\/38\/33.2-3802","metadata":false},{"id":75942,"structure_id":14024,"section_number":"33.2-3803","catch_line":"Board of the authority","url":"\/33.2-3803\/","token":"33.2\/IV\/38\/33.2-3803","metadata":false},{"id":68572,"structure_id":14024,"section_number":"33.2-3804","catch_line":"Office of authority; title to property","url":"\/33.2-3804\/","token":"33.2\/IV\/38\/33.2-3804","metadata":false},{"id":84577,"structure_id":14024,"section_number":"33.2-3805","catch_line":"Powers of the authority","url":"\/33.2-3805\/","token":"33.2\/IV\/38\/33.2-3805","metadata":false},{"id":87012,"structure_id":14024,"section_number":"33.2-3806","catch_line":"Donations to authority; remittance of tax revenue","url":"\/33.2-3806\/","token":"33.2\/IV\/38\/33.2-3806","metadata":false},{"id":85129,"structure_id":14024,"section_number":"33.2-3807","catch_line":"Revenue sharing agreements","url":"\/33.2-3807\/","token":"33.2\/IV\/38\/33.2-3807","metadata":false},{"id":75998,"structure_id":14024,"section_number":"33.2-3808","catch_line":"Applicability of land use regulations","url":"\/33.2-3808\/","token":"33.2\/IV\/38\/33.2-3808","metadata":false},{"id":61807,"structure_id":14024,"section_number":"33.2-3809","catch_line":"Bond issues; contesting validity of bonds","url":"\/33.2-3809\/","token":"33.2\/IV\/38\/33.2-3809","metadata":false},{"id":67416,"structure_id":14024,"section_number":"33.2-3810","catch_line":"Investment in bonds","url":"\/33.2-3810\/","token":"33.2\/IV\/38\/33.2-3810","metadata":false},{"id":61274,"structure_id":14024,"section_number":"33.2-3811","catch_line":"Bonds exempt from taxation","url":"\/33.2-3811\/","token":"33.2\/IV\/38\/33.2-3811","metadata":false},{"id":55466,"structure_id":14024,"section_number":"33.2-3812","catch_line":"Tax revenues of the Commonwealth or any other political subdivisions not pledged","url":"\/33.2-3812\/","token":"33.2\/IV\/38\/33.2-3812","metadata":false},{"id":56570,"structure_id":14024,"section_number":"33.2-3813","catch_line":"Forms of accounts and records; audit of same","url":"\/33.2-3813\/","token":"33.2\/IV\/38\/33.2-3813","metadata":false},{"id":61403,"structure_id":14024,"section_number":"33.2-3814","catch_line":"Tort liability","url":"\/33.2-3814\/","token":"33.2\/IV\/38\/33.2-3814","metadata":false},{"id":65348,"structure_id":14024,"section_number":"33.2-3815","catch_line":"Dissolution of authority","url":"\/33.2-3815\/","token":"33.2\/IV\/38\/33.2-3815","metadata":false},{"id":55115,"structure_id":14024,"section_number":"33.2-3816","catch_line":"Chapter liberally construed","url":"\/33.2-3816\/","token":"33.2\/IV\/38\/33.2-3816","metadata":false}],"previous_section":{"id":75998,"structure_id":14024,"section_number":"33.2-3808","catch_line":"Applicability of land use regulations","url":"\/33.2-3808\/","token":"33.2\/IV\/38\/33.2-3808","metadata":false},"next_section":{"id":67416,"structure_id":14024,"section_number":"33.2-3810","catch_line":"Investment in bonds","url":"\/33.2-3810\/","token":"33.2\/IV\/38\/33.2-3810","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/33.2-3809\/","history_text":false,"references":false,"refers_to":false,"permalink":{"id":207927,"object_type":"law","relational_id":61807,"identifier":"33.2-3809","token":"33.2\/IV\/38\/33.2-3809","url":"\/33.2-3809\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/33.2-3809\/","token":"33.2\/IV\/38\/33.2-3809","dublin_core":{"Title":"Bond issues; contesting validity of bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 33.2-3809","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The authority<\/span> may at any time and from time to time issue<\/span> bonds<\/span><\/span> for any valid purpose, including the establishment of reserves and the payment of interest. For purposes of this chapter, “bonds<\/span><\/span>” includes notes of any kind, interim certificates, refunding bonds<\/span><\/span>, or any other evidence<\/span> of obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The bonds<\/span><\/span> of any issue<\/span> shall be payable solely from the property or receipts of the authority<\/span>, including but not limited to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Taxes, rents, fees, charges, or other revenues<\/span> payable to the authority<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Payments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Investment earnings from funds or accounts maintained pursuant to a bond<\/span> resolution or trust agreement; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Proceeds of refunding bonds<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Bonds<\/span><\/span> shall be authorized by resolution of the authority<\/span> and may be secured by a trust agreement by and between the authority<\/span> and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. The bonds<\/span><\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Be issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds<\/span><\/span> or as term bonds<\/span><\/span> or both, not exceeding 40 years from their respective dates of issue<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Bear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Be payable at a time or times, in the denominations and form, and carry the registration and privileges<\/span> as to conversion and for the replacement of mutilated, lost, or destroyed bonds<\/span><\/span> as the resolution or trust agreement may provide; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Be payable in lawful money of the United States at a designated place; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Be subject to the terms of purchase, payment, redemption<\/span>, refunding, or refinancing that the resolution or trust agreement provides; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Be executed by the manual or facsimile signatures of the officers of the authority<\/span> designated by the authority<\/span>, which signatures shall be valid at delivery even for one who has ceased to hold office; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Be sold in the manner and upon the terms determined by the authority<\/span> including private (negotiated) sale. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any resolution or trust agreement may contain provisions that shall be a part of the contract<\/span> with the holders of the bonds<\/span><\/span> as to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Pledging, assigning, or directing the use, investment, or disposition<\/span> of receipts of the authority<\/span> or proceeds or benefits of any contract<\/span> and conveying or otherwise securing any property rights; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Setting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition<\/span> thereof; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Limiting the purpose to which, or the investments in which, the proceeds of the sale of any issue<\/span> of bonds<\/span><\/span> may be applied and restrictions to investments of revenues<\/span> or bond<\/span> proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Limiting the issuance of additional bonds<\/span><\/span> and the terms upon which additional bonds<\/span><\/span> may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds<\/span><\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Refunding or refinancing outstanding bonds<\/span><\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Providing a procedure, if any, by which the terms of any contract<\/span> with bondholders may be altered or amended and the amount of bonds<\/span><\/span> the holders of which must consent thereto, and the manner in which consent shall be given; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Defining the acts or omissions that shall constitute a default<\/span> in the duties of the authority<\/span> to bondholders and providing the rights of or remedies for such holders in the event of a default<\/span>, which may include provisions restricting individual right of action by bondholders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Providing for guarantees, pledges of property, letters of credit, or other security or insurance for the benefit of the bondholders; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Addressing any other matter relating to the bonds<\/span><\/span> that the authority<\/span> determines appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No member of the authority<\/span>, member of the board<\/span>, or any person executing the bonds<\/span><\/span> on behalf of the authority<\/span> shall be liable personally for the bonds<\/span><\/span> or subject to any personal liability by reason of the issuance of the bonds<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The authority<\/span> may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A pledge by the authority<\/span> of revenues<\/span> as security for an issue<\/span> of bonds<\/span><\/span> shall be valid and binding from the time the pledge is made. The revenues<\/span> pledged shall immediately be subject to the lien<\/span> of the pledge without any physical delivery or further act, and the lien<\/span> of any pledge shall be valid and binding against any person having any claim of any kind in tort<\/span>, contract<\/span>, or otherwise against the authority<\/span>, irrespective of whether the person has notice. No resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by the authority<\/span> need be filed or recorded in any public record other than the records of the authority<\/span> in order<\/span> to perfect the lien<\/span> against third persons, regardless of any contrary provision of public general or local law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Except to the extent restricted by an applicable resolution or trust agreement, any holder of bonds<\/span><\/span> issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws<\/span> of Virginia or by any applicable resolution or trust agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The authority<\/span> may issue<\/span> bonds<\/span><\/span> to refund any of its bonds<\/span><\/span> then outstanding, including the payment of any redemption<\/span> premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption<\/span>, purchase, or maturity of the bonds<\/span><\/span>. Refunding bonds<\/span><\/span> may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default<\/span> and may be issued in one or more series in an amount in excess of that of the bonds<\/span><\/span> to be refunded. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> For a period of 30 days after the date of the filing with the circuit<\/span> court<\/span> having jurisdiction<\/span> over any of the political subdivisions that are members<\/span> of the authority<\/span> and in which the facility<\/span> or any portion thereof being financed is located a certified copy of the initial resolution of the authority<\/span> authorizing the issuance of bonds<\/span><\/span>, any person in interest may contest the validity of the bonds<\/span><\/span>, rates, rents, fees, and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility<\/span> or any portion thereof being financed, the pledge of revenues<\/span> pledged to payment of the bonds<\/span><\/span>, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds<\/span><\/span>, or any matter contained in, provided for, or done or to be done pursuant to the foregoing. If such contest is not given within the 30-day period, the authority<\/span> to issue<\/span> bonds<\/span><\/span>, the validity of any other provision contained in the resolution, trust agreement, indenture, or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds<\/span><\/span>, shall be conclusively presumed to have been legally taken, and no court<\/span> shall have authority<\/span> to inquire into such matters and no such contest shall thereafter be instituted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> Upon the delivery of any bonds<\/span><\/span> reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds<\/span><\/span> shall be conclusively presumed to be fully authorized by all of the laws<\/span> of the Commonwealth and to have been sold, executed, and delivered by the authority<\/span> in conformity with such laws<\/span>, and the validity of the bonds<\/span><\/span> shall not be questioned by a party<\/span> plaintiff<\/span>, a party<\/span> defendant<\/span>, the authority<\/span>, or any other interested party<\/span> in any court<\/span>, anything in this chapter or in any other statutes<\/span> to the contrary notwithstanding. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOND ISSUES; CONTESTING VALIDITY OF BONDS (\u00a7 33.2-3809)\n\nA. The authority may at any time and from time to time issue bonds for any valid\npurpose, including the establishment of reserves and the payment of interest.\nFor purposes of this chapter, “bonds” includes notes of any kind,\ninterim certificates, refunding bonds, or any other evidence of obligation.\n\nB. The bonds of any issue shall be payable solely from the property or receipts\nof the authority, including but not limited to:\n\n 1. Taxes, rents, fees, charges, or other revenues payable to the authority;\n\n 2. Payments by financial institutions, insurance companies, or others pursuant\n to letters or lines of credit, policies of insurance, or purchase agreements;\n\n 3. Investment earnings from funds or accounts maintained pursuant to a bond\n resolution or trust agreement; and\n\n 4. Proceeds of refunding bonds.\n\nC. Bonds shall be authorized by resolution of the authority and may be secured\nby a trust agreement by and between the authority and a corporate trustee or\ntrustees, which may be any trust company or bank having the powers of a trust\ncompany within or outside the Commonwealth. The bonds shall:\n\n 1. Be issued at, above, or below par value, for cash or other valuable\n consideration, and mature at a time or times, whether as serial bonds or as\n term bonds or both, not exceeding 40 years from their respective dates of\n issue;\n\n 2. Bear interest at the fixed or variable rate or rates determined by the\n method provided in the resolution or trust agreement;\n\n 3. Be payable at a time or times, in the denominations and form, and carry the\n registration and privileges as to conversion and for the replacement of\n mutilated, lost, or destroyed bonds as the resolution or trust agreement may\n provide;\n\n 4. Be payable in lawful money of the United States at a designated place;\n\n 5. Be subject to the terms of purchase, payment, redemption, refunding, or\n refinancing that the resolution or trust agreement provides;\n\n 6. Be executed by the manual or facsimile signatures of the officers of the\n authority designated by the authority, which signatures shall be valid at\n delivery even for one who has ceased to hold office; and\n\n 7. Be sold in the manner and upon the terms determined by the authority\n including private (negotiated) sale.\n\nD. Any resolution or trust agreement may contain provisions that shall be a part\nof the contract with the holders of the bonds as to:\n\n 1. Pledging, assigning, or directing the use, investment, or disposition of\n receipts of the authority or proceeds or benefits of any contract and\n conveying or otherwise securing any property rights;\n\n 2. Setting aside loan funding deposits, debt service reserves, capitalized\n interest accounts, cost of issuance accounts and sinking funds, and the\n regulation, investment, and disposition thereof;\n\n 3. Limiting the purpose to which, or the investments in which, the proceeds of\n the sale of any issue of bonds may be applied and restrictions to investments\n of revenues or bond proceeds in government obligations for which principal and\n interest are unconditionally guaranteed by the United States of America;\n\n 4. Limiting the issuance of additional bonds and the terms upon which\n additional bonds may be issued and secured and may rank on a parity with, or\n be subordinate or superior to, other bonds;\n\n 5. Refunding or refinancing outstanding bonds;\n\n 6. Providing a procedure, if any, by which the terms of any contract with\n bondholders may be altered or amended and the amount of bonds the holders of\n which must consent thereto, and the manner in which consent shall be given;\n\n 7. Defining the acts or omissions that shall constitute a default in the\n duties of the authority to bondholders and providing the rights of or remedies\n for such holders in the event of a default, which may include provisions\n restricting individual right of action by bondholders;\n\n 8. Providing for guarantees, pledges of property, letters of credit, or other\n security or insurance for the benefit of the bondholders; and\n\n 9. Addressing any other matter relating to the bonds that the authority\n determines appropriate.\n\nE. No member of the authority, member of the board, or any person executing the\nbonds on behalf of the authority shall be liable personally for the bonds or\nsubject to any personal liability by reason of the issuance of the bonds.\n\nF. The authority may enter into agreements with agents, banks, insurers, or\nothers for the purpose of enhancing the marketability of, or as security for,\nits bonds.\n\nG. A pledge by the authority of revenues as security for an issue of bonds shall\nbe valid and binding from the time the pledge is made. The revenues pledged\nshall immediately be subject to the lien of the pledge without any physical\ndelivery or further act, and the lien of any pledge shall be valid and binding\nagainst any person having any claim of any kind in tort, contract, or otherwise\nagainst the authority, irrespective of whether the person has notice. No\nresolution, trust agreement or financing statement, continuation statement, or\nother instrument adopted or entered into by the authority need be filed or\nrecorded in any public record other than the records of the authority in order\nto perfect the lien against third persons, regardless of any contrary provision\nof public general or local law.\n\nH. Except to the extent restricted by an applicable resolution or trust\nagreement, any holder of bonds issued under this chapter or a trustee acting\nunder a trust agreement entered into under this chapter, may, by any suitable\nform of legal proceedings, protect and enforce any rights granted under the laws\nof Virginia or by any applicable resolution or trust agreement.\n\nI. The authority may issue bonds to refund any of its bonds then outstanding,\nincluding the payment of any redemption premium and any interest accrued or to\naccrue to the earliest or any subsequent date of redemption, purchase, or\nmaturity of the bonds. Refunding bonds may be issued for the public purposes of\nrealizing savings in the effective costs of debt service, directly or through a\ndebt restructuring, for alleviating impending or actual default and may be\nissued in one or more series in an amount in excess of that of the bonds to be\nrefunded.\n\nJ. For a period of 30 days after the date of the filing with the circuit court\nhaving jurisdiction over any of the political subdivisions that are members of\nthe authority and in which the facility or any portion thereof being financed is\nlocated a certified copy of the initial resolution of the authority authorizing\nthe issuance of bonds, any person in interest may contest the validity of the\nbonds, rates, rents, fees, and other charges for the services and facilities\nfurnished by, for the use of, or in connection with, the facility or any portion\nthereof being financed, the pledge of revenues pledged to payment of the bonds,\nany provisions that may be recited in any resolution, trust agreement, indenture\nor other instrument authorizing the issuance of bonds, or any matter contained\nin, provided for, or done or to be done pursuant to the foregoing. If such\ncontest is not given within the 30-day period, the authority to issue bonds, the\nvalidity of any other provision contained in the resolution, trust agreement,\nindenture, or other instrument, and all proceedings in connection with the\nauthorization and the issuance of the bonds, shall be conclusively presumed to\nhave been legally taken, and no court shall have authority to inquire into such\nmatters and no such contest shall thereafter be instituted.\n\nK. Upon the delivery of any bonds reciting that they are issued pursuant to this\nchapter and a resolution or resolutions adopted under this chapter, the bonds\nshall be conclusively presumed to be fully authorized by all of the laws of the\nCommonwealth and to have been sold, executed, and delivered by the authority in\nconformity with such laws, and the validity of the bonds shall not be questioned\nby a party plaintiff, a party defendant, the authority, or any other interested\nparty in any court, anything in this chapter or in any other statutes to the\ncontrary notwithstanding.\n\nHISTORY: 2021, Sp. Sess. I, cc. 353, 354.","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}}