{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/5.1-30.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/5.1-30.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/5.1-30.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/5.1-30.5.html"}],"law_id":67294,"edition_id":1,"section_id":67294,"structure_id":15281,"section_number":"5.1-30.5","catch_line":"Loans to local governments","history":"1999, c. 897.","full_text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments to finance or refinance the cost of any project. The local governments to which loans are to be made, the purposes of the loan, and the amount of each such loan, shall be designated in writing by the Board to the Authority following consultation with the Authority. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses.\n\t\tExcept as otherwise provided in this chapter, the Authority shall determine the interest rate and terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:\n\n1\n\nEstablish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of, premium, if any, and interest on the loan from the Fund to the local government; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges.2\n\nCreate and maintain a special fund or funds for the payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable.3\n\nCreate and maintain other special funds as required by the Authority.4\n\nPerform other acts otherwise permitted by applicable law to secure payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects, undertakings, facilities, utilities, and systems to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.5\n\nObtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority may request additional reviews at any time during the term of the loan. In addition, anyone receiving a report in accordance with § 5.1-30.9 may request an additional review as set forth in this section.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government.","order_by":null,"text":{"0":{"id":243853,"text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments to finance or refinance the cost of any project. The local governments to which loans are to be made, the purposes of the loan, and the amount of each such loan, shall be designated in writing by the Board to the Authority following consultation with the Authority. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses.\n\t\tExcept as otherwise provided in this chapter, the Authority shall determine the interest rate and terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":243854,"text":"Establish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of, premium, if any, and interest on the loan from the Fund to the local government; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":243855,"text":"Create and maintain a special fund or funds for the payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":243856,"text":"Create and maintain other special funds as required by the Authority.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":243857,"text":"Perform other acts otherwise permitted by applicable law to secure payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects, undertakings, facilities, utilities, and systems to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":243858,"text":"Obtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority may request additional reviews at any time during the term of the loan. In addition, anyone receiving a report in accordance with § 5.1-30.9 may request an additional review as set forth in this section.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":15281,"edition_id":1,"name":"Virginia Airports Revolving Fund","identifier":"2.1","label":"chapter","depth":2,"order_by":1,"parent_id":13105,"metadata":{},"date_created":"2026-06-26 03:53:36","date_modified":"2026-06-26 03:53:36","permalink":{"id":233737,"object_type":"structure","relational_id":15281,"identifier":"2.1","token":"5.1\/2.1","url":"\/5.1\/2.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13105,"edition_id":1,"name":"Aviation","identifier":"5.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:17","date_modified":"2026-06-26 03:44:17","permalink":{"id":233299,"object_type":"structure","relational_id":13105,"identifier":"5.1","token":"5.1","url":"\/5.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65035,"structure_id":15281,"section_number":"5.1-30.1","catch_line":"Definitions","url":"\/5.1-30.1\/","token":"5.1\/2.1\/5.1-30.1","metadata":false},{"id":77164,"structure_id":15281,"section_number":"5.1-30.10","catch_line":"Liberal construction of chapter","url":"\/5.1-30.10\/","token":"5.1\/2.1\/5.1-30.10","metadata":false},{"id":68946,"structure_id":15281,"section_number":"5.1-30.2","catch_line":"Creation and management of Virginia Airports Revolving Fund","url":"\/5.1-30.2\/","token":"5.1\/2.1\/5.1-30.2","metadata":false},{"id":60301,"structure_id":15281,"section_number":"5.1-30.3","catch_line":"Deposit of money; expenditures; investments","url":"\/5.1-30.3\/","token":"5.1\/2.1\/5.1-30.3","metadata":false},{"id":58252,"structure_id":15281,"section_number":"5.1-30.4","catch_line":"Collection of money due Fund","url":"\/5.1-30.4\/","token":"5.1\/2.1\/5.1-30.4","metadata":false},{"id":67294,"structure_id":15281,"section_number":"5.1-30.5","catch_line":"Loans to local governments","url":"\/5.1-30.5\/","token":"5.1\/2.1\/5.1-30.5","metadata":false},{"id":59316,"structure_id":15281,"section_number":"5.1-30.6","catch_line":"Pledge of loans to secure bonds of Authority","url":"\/5.1-30.6\/","token":"5.1\/2.1\/5.1-30.6","metadata":false},{"id":58175,"structure_id":15281,"section_number":"5.1-30.7","catch_line":"Sale of loans","url":"\/5.1-30.7\/","token":"5.1\/2.1\/5.1-30.7","metadata":false},{"id":72911,"structure_id":15281,"section_number":"5.1-30.8","catch_line":"Powers of the Authority","url":"\/5.1-30.8\/","token":"5.1\/2.1\/5.1-30.8","metadata":false},{"id":67058,"structure_id":15281,"section_number":"5.1-30.9","catch_line":"Report to the General Assembly and Governor","url":"\/5.1-30.9\/","token":"5.1\/2.1\/5.1-30.9","metadata":false}],"previous_section":{"id":58252,"structure_id":15281,"section_number":"5.1-30.4","catch_line":"Collection of money due Fund","url":"\/5.1-30.4\/","token":"5.1\/2.1\/5.1-30.4","metadata":false},"next_section":{"id":59316,"structure_id":15281,"section_number":"5.1-30.6","catch_line":"Pledge of loans to secure bonds of Authority","url":"\/5.1-30.6\/","token":"5.1\/2.1\/5.1-30.6","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/5.1-30.5\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 897<\/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":67058,"section_number":"5.1-30.9","catch_line":"Report to the General Assembly and Governor","order_by":null,"url":"\/5.1-30.9\/"}],"permalink":{"id":233759,"object_type":"law","relational_id":67294,"identifier":"5.1-30.5","token":"5.1\/2.1\/5.1-30.5","url":"\/5.1-30.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/5.1-30.5\/","token":"5.1\/2.1\/5.1-30.5","dublin_core":{"Title":"Loans to local governments","Type":"Text","Format":"text\/html","Identifier":"\u00a7 5.1-30.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Except as otherwise provided in this chapter, money in the Fund<\/span> shall be used solely to make loans to local governments<\/span> to finance or refinance the cost of any project<\/span>. The local governments<\/span> to which loans are to be made, the purposes of the loan, and the amount of each such loan, shall be designated in writing by the Board<\/span> to the Authority<\/span> following consultation with the Authority<\/span>. No loan from the Fund<\/span> shall exceed the total cost of the project<\/span> to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses.\n\t\tExcept as otherwise provided in this chapter, the Authority<\/span> shall determine the interest rate and terms and conditions of any loan from the Fund<\/span>, which may vary between local governments<\/span>. Each loan shall be evidenced by appropriate bonds<\/span> or notes of the local government<\/span> payable to the Fund<\/span>. The bonds<\/span> or notes shall have been duly authorized by the local government<\/span> and executed by its authorized legal representatives. The Authority<\/span> is authorized to require in connection with any loan from the Fund<\/span> such documents, instruments, certificates, legal opinions<\/span> and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority<\/span> may establish, the Authority<\/span> may require, as a condition to making any loan from the Fund<\/span>, that the local government<\/span> receiving the loan covenant perform any of the following:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Establish and collect rents, rates, fees, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal, and repairs of the project<\/span>; (ii) any outstanding indebtedness incurred for the purposes of the project<\/span>, including the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund<\/span> deemed necessary or appropriate by the Authority<\/span> to offset the need, in whole or in part, for future increases in rents, rates, fees, or charges. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Create and maintain a special fund<\/span> or funds<\/span> for the payment of the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair, or replacement of the project<\/span> or any portions thereof or other property of the local government<\/span>, and deposit into any fund<\/span> or funds<\/span> amounts sufficient to make any payments on the loan as they become due and payable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Create and maintain other special funds<\/span> as required by the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Perform other acts otherwise permitted by applicable law<\/span> to secure payment of the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and to provide for the remedies of the Fund<\/span> in the event of any default<\/span> by the local government<\/span> in the payment of the loan, including, without limitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit and other forms of collateral<\/span>, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\tb. The combination of one or more projects<\/span>, or the combination of one or more projects<\/span> with one or more other undertakings, facilities, utilities, or systems, for the purpose of operations and financing, and the pledging of the revenues from such combined projects<\/span>, undertakings, facilities, utilities, and systems to secure the loan from the Fund<\/span> to the local government<\/span> made in connection with such combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project<\/span>; and\n\t\t\td. The procurement of casualty and liability insurance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Obtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority<\/span> may request additional reviews at any time during the term of the loan. In addition, anyone receiving a report in accordance with § 5.1-30.9<\/a> may request an additional review as set forth in this section.\n\t\t\tAll local governments<\/span> borrowing money from the Fund<\/span> are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts<\/span> that are contemplated by this chapter. Such contracts<\/span> need not be identical among all local governments<\/span>, but may be structured as determined by the Authority<\/span> according to the needs of the contracting local governments<\/span> and the Fund<\/span>.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds<\/span> of the Authority<\/span>, the Authority<\/span> may consent to and approve any modification in the terms of any loan to any local government<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOANS TO LOCAL GOVERNMENTS (\u00a7 5.1-30.5)\n\nExcept as otherwise provided in this chapter, money in the Fund shall be used\nsolely to make loans to local governments to finance or refinance the cost of\nany project. The local governments to which loans are to be made, the purposes\nof the loan, and the amount of each such loan, shall be designated in writing by\nthe Board to the Authority following consultation with the Authority. No loan\nfrom the Fund shall exceed the total cost of the project to be financed or the\noutstanding principal amount of the indebtedness to be refinanced plus\nreasonable financing expenses.\n\t\tExcept as otherwise provided in this chapter, the Authority shall determine\nthe interest rate and terms and conditions of any loan from the Fund, which may\nvary between local governments. Each loan shall be evidenced by appropriate\nbonds or notes of the local government payable to the Fund. The bonds or notes\nshall have been duly authorized by the local government and executed by its\nauthorized legal representatives. The Authority is authorized to require in\nconnection with any loan from the Fund such documents, instruments,\ncertificates, legal opinions and other information as it may deem necessary or\nconvenient. In addition to any other terms or conditions which the Authority may\nestablish, the Authority may require, as a condition to making any loan from the\nFund, that the local government receiving the loan covenant perform any of the\nfollowing:\n\n1. Establish and collect rents, rates, fees, and charges to produce revenue\nsufficient to pay all or a specified portion of (i) the costs of operation,\nmaintenance, replacement, renewal, and repairs of the project; (ii) any\noutstanding indebtedness incurred for the purposes of the project, including the\nprincipal of, premium, if any, and interest on the loan from the Fund to the\nlocal government; and (iii) any amounts necessary to create and maintain any\nrequired reserve, including any rate stabilization fund deemed necessary or\nappropriate by the Authority to offset the need, in whole or in part, for future\nincreases in rents, rates, fees, or charges.\n\n2. Create and maintain a special fund or funds for the payment of the principal\nof, premium, if any, and interest on the loan from the Fund to the local\ngovernment and any other amounts becoming due under any agreement entered into\nin connection with the loan, or for the operation, maintenance, repair, or\nreplacement of the project or any portions thereof or other property of the\nlocal government, and deposit into any fund or funds amounts sufficient to make\nany payments on the loan as they become due and payable.\n\n3. Create and maintain other special funds as required by the Authority.\n\n4. Perform other acts otherwise permitted by applicable law to secure payment of\nthe principal of, premium, if any, and interest on the loan from the Fund to the\nlocal government and to provide for the remedies of the Fund in the event of any\ndefault by the local government in the payment of the loan, including, without\nlimitation, any of the following:\n\t\t\ta. The procurement of insurance, guarantees, letters of credit and other\nforms of collateral, security, liquidity arrangements or credit supports for the\nloan from any source, public or private, and the payment therefor of premiums,\nfees, or other charges;\n\t\t\tb. The combination of one or more projects, or the combination of one or more\nprojects with one or more other undertakings, facilities, utilities, or systems,\nfor the purpose of operations and financing, and the pledging of the revenues\nfrom such combined projects, undertakings, facilities, utilities, and systems to\nsecure the loan from the Fund to the local government made in connection with\nsuch combination or any part or parts thereof;\n\t\t\tc. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\td. The procurement of casualty and liability insurance.\n\n5. Obtain a review of the accounting and the internal controls from the Auditor\nof Public Accounts or his legally authorized representatives. The Authority may\nrequest additional reviews at any time during the term of the loan. In addition,\nanyone receiving a report in accordance with § 5.1-30.9 may request an\nadditional review as set forth in this section.\n\t\t\tAll local governments borrowing money from the Fund are authorized to perform\nany acts, take any action, adopt any proceedings and make and carry out any\ncontracts that are contemplated by this chapter. Such contracts need not be\nidentical among all local governments, but may be structured as determined by\nthe Authority according to the needs of the contracting local governments and\nthe Fund.\n\t\t\tSubject to the rights, if any, of the registered owners of any of the bonds\nof the Authority, the Authority may consent to and approve any modification in\nthe terms of any loan to any local government.\n\nHISTORY: 1999, c. 897.","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}}