{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/62.1-216.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/62.1-216.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/62.1-216.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/62.1-216.html"}],"law_id":78168,"edition_id":1,"section_id":78168,"structure_id":13206,"section_number":"62.1-216","catch_line":"Purchase and credit enhancements of local obligations","history":"1984, c. 699; 1985, c. 67; 1998, c. 399; 2003, c. 561; 2023, cc. 440, 441.","full_text":"The Authority shall have the power and authority, with any funds of the Authority available for such a purpose, to purchase and acquire, on terms which the Authority determines, local obligations to finance or refinance the cost of any project. The Authority may pledge to the payment of any bonds all or any portion of the local obligations so purchased. The Authority may also, subject to any such pledge, sell any local obligations so purchased and apply the proceeds of such a sale to the purchase of other local obligations for financing or refinancing the cost of any project or for any other corporate purpose of the Authority.\n\t\tThe Authority shall also have the power and authority to issue credit enhancements, on terms which the Authority determines, to credit enhance local obligations issued to finance or refinance the cost of any project.\n\t\tThe Authority may require, as a condition to the purchase or credit enhancement of any local obligations, that the local government issuing the local obligations covenant to perform any of the following:\n\nA\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 and premium, if any, and interest on the local obligations; 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 part, for future increases in rents, rates, fees or charges;B\n\nCreate and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the local obligations and any other amounts becoming due under any agreement entered into in connection with the local obligations, 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 as they become due and payable;C\n\nCreate and maintain other special funds as required by the Authority; andD\n\nPerform other acts, including the conveyance of real and personal property together with all right, title and interest therein to the Authority, or take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal of and premium, if any, and interest on the local obligations or obligations to the Authority with respect to any credit enhancement and to provide for the remedies of the Authority or other holder of the local obligations in the event of any default by the local government in the payment, including, without limitation, any of the following:1\n\nThe procurement of credit enhancements or liquidity arrangements for local obligations from any source, public or private, and the payment therefor of premiums, fees or other charges.2\n\nThe payment of the allocable shares of the local governments, as determined by the Authority, of any costs, fees, charges or expenses attributable to liquidity arrangements incurred in connection with the issuance of bonds by the Authority to acquire local obligations of one or more local governments. The determination of such allocable shares may be made by the Authority on any reasonable basis.3\n\nThe 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 local obligations issued in connection with such combination or any part or parts thereof.4\n\nThe payment of the allocable shares of the local governments, as determined by the Authority on any reasonable basis, of rate stabilization funds established or required by the Authority in connection with the issuance of bonds by the Authority to acquire or provide credit enhancement for local obligations of two or more local governments.\n\t\t\t\tAll local governments issuing and selling local obligations to the Authority or to be credit enhanced by the Authority are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts with the Authority that are contemplated by this chapter. Such contracts need not be identical among all participants in financings of the Authority, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Authority.\n\t\t\t\tTo the extent permitted by law for local obligations issued after July 1, 2003, local governments may enter into agreements with the Authority that provide for a local government to consider and make appropriations from the following: (i) funds or revenues from service districts created under Chapter 24 (§ 15.2-2400 et seq.) of Title 15.2, (ii) funds or revenues accumulated and held by the local government, or (iii) any funds or revenues to be received or generated by the local government in amounts sufficient to pay all or a specified portion of the amounts set forth in subsection A or to make deposits into the special fund or funds provided for in subsections B and C and to pledge and apply the amounts so appropriated for such purposes.","order_by":null,"text":{"0":{"id":280208,"text":"The Authority shall have the power and authority, with any funds of the Authority available for such a purpose, to purchase and acquire, on terms which the Authority determines, local obligations to finance or refinance the cost of any project. The Authority may pledge to the payment of any bonds all or any portion of the local obligations so purchased. The Authority may also, subject to any such pledge, sell any local obligations so purchased and apply the proceeds of such a sale to the purchase of other local obligations for financing or refinancing the cost of any project or for any other corporate purpose of the Authority.\n\t\tThe Authority shall also have the power and authority to issue credit enhancements, on terms which the Authority determines, to credit enhance local obligations issued to finance or refinance the cost of any project.\n\t\tThe Authority may require, as a condition to the purchase or credit enhancement of any local obligations, that the local government issuing the local obligations covenant to perform any of the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"A"},"1":{"id":280209,"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 and premium, if any, and interest on the local obligations; 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 part, for future increases in rents, rates, fees or charges;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"","next_prefix":"B"},"2":{"id":280210,"text":"Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the local obligations and any other amounts becoming due under any agreement entered into in connection with the local obligations, 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 as they become due and payable;","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"3":{"id":280211,"text":"Create and maintain other special funds as required by the Authority; and","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"4":{"id":280212,"text":"Perform other acts, including the conveyance of real and personal property together with all right, title and interest therein to the Authority, or take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal of and premium, if any, and interest on the local obligations or obligations to the Authority with respect to any credit enhancement and to provide for the remedies of the Authority or other holder of the local obligations in the event of any default by the local government in the payment, including, without limitation, any of the following:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"5":{"id":280213,"text":"The procurement of credit enhancements or liquidity arrangements for local obligations from any source, public or private, and the payment therefor of premiums, fees or other charges.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"6":{"id":280214,"text":"The payment of the allocable shares of the local governments, as determined by the Authority, of any costs, fees, charges or expenses attributable to liquidity arrangements incurred in connection with the issuance of bonds by the Authority to acquire local obligations of one or more local governments. The determination of such allocable shares may be made by the Authority on any reasonable basis.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"7":{"id":280215,"text":"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 local obligations issued in connection with such combination or any part or parts thereof.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"8":{"id":280216,"text":"The payment of the allocable shares of the local governments, as determined by the Authority on any reasonable basis, of rate stabilization funds established or required by the Authority in connection with the issuance of bonds by the Authority to acquire or provide credit enhancement for local obligations of two or more local governments.\n\t\t\t\tAll local governments issuing and selling local obligations to the Authority or to be credit enhanced by the Authority are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts with the Authority that are contemplated by this chapter. Such contracts need not be identical among all participants in financings of the Authority, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Authority.\n\t\t\t\tTo the extent permitted by law for local obligations issued after July 1, 2003, local governments may enter into agreements with the Authority that provide for a local government to consider and make appropriations from the following: (i) funds or revenues from service districts created under Chapter 24 (§ 15.2-2400 et seq.) of Title 15.2, (ii) funds or revenues accumulated and held by the local government, or (iii) any funds or revenues to be received or generated by the local government in amounts sufficient to pay all or a specified portion of the amounts set forth in subsection A or to make deposits into the special fund or funds provided for in subsections B and C and to pledge and apply the amounts so appropriated for such purposes.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3"}},"ancestry":[{"id":13206,"edition_id":1,"name":"Virginia Resources Authority","identifier":"21","label":"chapter","depth":2,"order_by":1,"parent_id":12909,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":268673,"object_type":"structure","relational_id":13206,"identifier":"21","token":"62.1\/21","url":"\/62.1\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12909,"edition_id":1,"name":"Waters of the State, Ports and Harbors","identifier":"62.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:00","date_modified":"2026-06-26 03:44:00","permalink":{"id":268199,"object_type":"structure","relational_id":12909,"identifier":"62.1","token":"62.1","url":"\/62.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85141,"structure_id":13206,"section_number":"62.1-197","catch_line":"Short title","url":"\/62.1-197\/","token":"62.1\/21\/62.1-197","metadata":false},{"id":64219,"structure_id":13206,"section_number":"62.1-198","catch_line":"Legislative findings and purposes","url":"\/62.1-198\/","token":"62.1\/21\/62.1-198","metadata":false},{"id":80022,"structure_id":13206,"section_number":"62.1-199","catch_line":"Definitions","url":"\/62.1-199\/","token":"62.1\/21\/62.1-199","metadata":false},{"id":75414,"structure_id":13206,"section_number":"62.1-200","catch_line":"Creation of Authority","url":"\/62.1-200\/","token":"62.1\/21\/62.1-200","metadata":false},{"id":54824,"structure_id":13206,"section_number":"62.1-201","catch_line":"Board of Directors","url":"\/62.1-201\/","token":"62.1\/21\/62.1-201","metadata":false},{"id":73267,"structure_id":13206,"section_number":"62.1-202","catch_line":"Appointment and duties of Executive Director","url":"\/62.1-202\/","token":"62.1\/21\/62.1-202","metadata":false},{"id":85528,"structure_id":13206,"section_number":"62.1-203","catch_line":"Powers of Authority","url":"\/62.1-203\/","token":"62.1\/21\/62.1-203","metadata":false},{"id":66055,"structure_id":13206,"section_number":"62.1-204","catch_line":"Power to borrow money and issue bonds and credit enhancements","url":"\/62.1-204\/","token":"62.1\/21\/62.1-204","metadata":false},{"id":74781,"structure_id":13206,"section_number":"62.1-205","catch_line":"Power to issue refunding bonds","url":"\/62.1-205\/","token":"62.1\/21\/62.1-205","metadata":false},{"id":71517,"structure_id":13206,"section_number":"62.1-206","catch_line":"Sources of payment and security for bonds and credit enhancements","url":"\/62.1-206\/","token":"62.1\/21\/62.1-206","metadata":false},{"id":69549,"structure_id":13206,"section_number":"62.1-207","catch_line":"Liability of Commonwealth, political subdivisions and members of board of directors","url":"\/62.1-207\/","token":"62.1\/21\/62.1-207","metadata":false},{"id":72376,"structure_id":13206,"section_number":"62.1-208","catch_line":"Authorization, content and sale of bonds and credit enhancements","url":"\/62.1-208\/","token":"62.1\/21\/62.1-208","metadata":false},{"id":58282,"structure_id":13206,"section_number":"62.1-209","catch_line":"Provisions of resolution or trust indenture authorizing issuance of bonds","url":"\/62.1-209\/","token":"62.1\/21\/62.1-209","metadata":false},{"id":69114,"structure_id":13206,"section_number":"62.1-210","catch_line":"Pledge by Authority","url":"\/62.1-210\/","token":"62.1\/21\/62.1-210","metadata":false},{"id":75603,"structure_id":13206,"section_number":"62.1-211","catch_line":"Purchase of bonds by Authority","url":"\/62.1-211\/","token":"62.1\/21\/62.1-211","metadata":false},{"id":83833,"structure_id":13206,"section_number":"62.1-212","catch_line":"Bonds as negotiable instruments","url":"\/62.1-212\/","token":"62.1\/21\/62.1-212","metadata":false},{"id":57674,"structure_id":13206,"section_number":"62.1-213","catch_line":"Validity of signatures of prior members or officers","url":"\/62.1-213\/","token":"62.1\/21\/62.1-213","metadata":false},{"id":64195,"structure_id":13206,"section_number":"62.1-214","catch_line":"Bondholder protection","url":"\/62.1-214\/","token":"62.1\/21\/62.1-214","metadata":false},{"id":72224,"structure_id":13206,"section_number":"62.1-215","catch_line":"Establishment of capital reserve funds","url":"\/62.1-215\/","token":"62.1\/21\/62.1-215","metadata":false},{"id":78168,"structure_id":13206,"section_number":"62.1-216","catch_line":"Purchase and credit enhancements of local obligations","url":"\/62.1-216\/","token":"62.1\/21\/62.1-216","metadata":false},{"id":72905,"structure_id":13206,"section_number":"62.1-216.1","catch_line":"Investigation by Governor of nonpayments; withholding state funds from nonpaying locality; payment of funds withheld; receipts, reports, etc","url":"\/62.1-216.1\/","token":"62.1\/21\/62.1-216.1","metadata":false},{"id":71594,"structure_id":13206,"section_number":"62.1-217","catch_line":"Grants from Commonwealth","url":"\/62.1-217\/","token":"62.1\/21\/62.1-217","metadata":false},{"id":61493,"structure_id":13206,"section_number":"62.1-218","catch_line":"Grants to local governments","url":"\/62.1-218\/","token":"62.1\/21\/62.1-218","metadata":false},{"id":70080,"structure_id":13206,"section_number":"62.1-219","catch_line":"Exemption from taxation","url":"\/62.1-219\/","token":"62.1\/21\/62.1-219","metadata":false},{"id":63260,"structure_id":13206,"section_number":"62.1-220","catch_line":"Bonds as legal investments and securities","url":"\/62.1-220\/","token":"62.1\/21\/62.1-220","metadata":false},{"id":54215,"structure_id":13206,"section_number":"62.1-221","catch_line":"Deposit of money; expenditures; security for deposits","url":"\/62.1-221\/","token":"62.1\/21\/62.1-221","metadata":false},{"id":84057,"structure_id":13206,"section_number":"62.1-222","catch_line":"Annual reports; audit","url":"\/62.1-222\/","token":"62.1\/21\/62.1-222","metadata":false},{"id":74970,"structure_id":13206,"section_number":"62.1-223","catch_line":"Liberal construction of chapter","url":"\/62.1-223\/","token":"62.1\/21\/62.1-223","metadata":false}],"previous_section":{"id":72224,"structure_id":13206,"section_number":"62.1-215","catch_line":"Establishment of capital reserve funds","url":"\/62.1-215\/","token":"62.1\/21\/62.1-215","metadata":false},"next_section":{"id":72905,"structure_id":13206,"section_number":"62.1-216.1","catch_line":"Investigation by Governor of nonpayments; withholding state funds from nonpaying locality; payment of funds withheld; receipts, reports, etc","url":"\/62.1-216.1\/","token":"62.1\/21\/62.1-216.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/62.1-216\/","history_text":"

This law was first created in 1984. The record of its establishment is cataloged in chapter 699 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. Unfortunately, the 1984 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. 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. Those modifications are as follows: in 1985, chapter 67; in 1998, chapter 399<\/a>; in 2003, chapter 561<\/a>; in 2023, chapters 440<\/a> and 441<\/a>.<\/p>","references":false,"refers_to":[{"id":81415,"section_number":"15.2-2400","catch_line":"Creation of service districts","order_by":null,"url":"\/15.2-2400\/"}],"permalink":{"id":268751,"object_type":"law","relational_id":78168,"identifier":"62.1-216","token":"62.1\/21\/62.1-216","url":"\/62.1-216\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/62.1-216\/","token":"62.1\/21\/62.1-216","dublin_core":{"Title":"Purchase and credit enhancements of local obligations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 62.1-216","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The Authority<\/span> shall have the power and authority<\/span>, with any funds of the Authority<\/span> available for such a purpose, to purchase and acquire, on terms which the Authority<\/span> determines, local obligations<\/span> to finance or refinance the cost<\/span> of any project<\/span>. The Authority<\/span> may pledge to the payment of any bonds<\/span><\/span> all or any portion of the local obligations<\/span> so purchased. The Authority<\/span> may also, subject to any such pledge, sell any local obligations<\/span> so purchased and apply the proceeds of such a sale to the purchase of other local obligations<\/span> for financing or refinancing the cost<\/span> of any project<\/span> or for any other corporate purpose of the Authority<\/span>.\n\t\tThe Authority<\/span> shall also have the power and authority<\/span> to issue<\/span> credit enhancements<\/span>, on terms which the Authority<\/span> determines, to credit enhance local obligations<\/span> issued to finance or refinance the cost<\/span> of any project<\/span>.\n\t\tThe Authority<\/span> may require, as a condition to the purchase or credit enhancement of any local obligations<\/span>, that the local government<\/span> issuing the local obligations<\/span> covenant to perform any of the following:<\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> Establish and collect rents, rates, fees and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs<\/span> 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 and premium, if any, and interest on the local obligations<\/span>; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority<\/span> to offset the need, in whole or part, for future increases in rents, rates, fees or charges; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the local obligations<\/span> and any other amounts becoming due under any agreement entered into in connection with the local obligations<\/span>, 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 or funds amounts sufficient to make any payments as they become due and payable; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

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

D.<\/span> Perform other acts, including the conveyance of real and personal property together with all right, title and interest therein to the Authority<\/span>, or take other actions as may be deemed necessary or desirable by the Authority<\/span> to secure payment of the principal of and premium, if any, and interest on the local obligations<\/span> or obligations to the Authority<\/span> with respect to any credit enhancement and to provide for the remedies of the Authority<\/span> or other holder of the local obligations<\/span> in the event of any default<\/span> by the local government<\/span> in the payment, including, without limitation, any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The procurement of credit enhancements<\/span> or liquidity arrangements for local obligations<\/span> from any source, public or private, and the payment therefor of premiums, fees or other charges. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The payment of the allocable shares of the local governments<\/span>, as determined by the Authority<\/span>, of any costs<\/span>, fees, charges or expenses attributable to liquidity arrangements incurred in connection with the issuance of bonds<\/span><\/span> by the Authority<\/span> to acquire local obligations<\/span> of one or more local governments<\/span>. The determination of such allocable shares may be made by the Authority<\/span> on any reasonable basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> 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 local obligations<\/span> issued in connection with such combination or any part or parts thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The payment of the allocable shares of the local governments<\/span>, as determined by the Authority<\/span> on any reasonable basis, of rate stabilization funds established or required by the Authority<\/span> in connection with the issuance of bonds<\/span><\/span> by the Authority<\/span> to acquire or provide credit enhancement for local obligations<\/span> of two or more local governments<\/span>.\n\t\t\t\tAll local governments<\/span> issuing and selling local obligations<\/span> to the Authority<\/span> or to be credit enhanced by the Authority<\/span> are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts<\/span> with the Authority<\/span> that are contemplated by this chapter. Such contracts<\/span> need not be identical among all participants in financings of the Authority<\/span>, but may be structured as determined by the Authority<\/span> according to the needs of the contracting local governments<\/span> and the Authority<\/span>.\n\t\t\t\tTo the extent permitted by law<\/span> for local obligations<\/span> issued after July 1, 2003, local governments<\/span> may enter into agreements with the Authority<\/span> that provide for a local government<\/span> to consider and make appropriations from the following: (i) funds or revenues from service districts created under Chapter 24 (§ 15.2-2400<\/a> et seq.) of Title 15.2, (ii) funds or revenues accumulated and held by the local government<\/span>, or (iii) any funds or revenues to be received or generated by the local government<\/span> in amounts sufficient to pay all or a specified portion of the amounts set forth in subsection A or to make deposits into the special fund or funds provided for in subsections B and C and to pledge and apply the amounts so appropriated for such purposes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPURCHASE AND CREDIT ENHANCEMENTS OF LOCAL OBLIGATIONS (\u00a7 62.1-216)\n\nThe Authority shall have the power and authority, with any funds of the\nAuthority available for such a purpose, to purchase and acquire, on terms which\nthe Authority determines, local obligations to finance or refinance the cost of\nany project. The Authority may pledge to the payment of any bonds all or any\nportion of the local obligations so purchased. The Authority may also, subject\nto any such pledge, sell any local obligations so purchased and apply the\nproceeds of such a sale to the purchase of other local obligations for financing\nor refinancing the cost of any project or for any other corporate purpose of the\nAuthority.\n\t\tThe Authority shall also have the power and authority to issue credit\nenhancements, on terms which the Authority determines, to credit enhance local\nobligations issued to finance or refinance the cost of any project.\n\t\tThe Authority may require, as a condition to the purchase or credit\nenhancement of any local obligations, that the local government issuing the\nlocal obligations covenant to perform any of the following:\n\nA. 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 and premium, if any, and interest on the local obligations; and\n(iii) any amounts necessary to create and maintain any required reserve,\nincluding any rate stabilization fund deemed necessary or appropriate by the\nAuthority to offset the need, in whole or part, for future increases in rents,\nrates, fees or charges;\n\nB. Create and maintain a special fund or funds for the payment of the principal\nof and premium, if any, and interest on the local obligations and any other\namounts becoming due under any agreement entered into in connection with the\nlocal obligations, or for the operation, maintenance, repair or replacement of\nthe project or any portions thereof or other property of the local government,\nand deposit into any fund or funds amounts sufficient to make any payments as\nthey become due and payable;\n\nC. Create and maintain other special funds as required by the Authority; and\n\nD. Perform other acts, including the conveyance of real and personal property\ntogether with all right, title and interest therein to the Authority, or take\nother actions as may be deemed necessary or desirable by the Authority to secure\npayment of the principal of and premium, if any, and interest on the local\nobligations or obligations to the Authority with respect to any credit\nenhancement and to provide for the remedies of the Authority or other holder of\nthe local obligations in the event of any default by the local government in the\npayment, including, without limitation, any of the following:\n\n 1. The procurement of credit enhancements or liquidity arrangements for local\n obligations from any source, public or private, and the payment therefor of\n premiums, fees or other charges.\n\n 2. The payment of the allocable shares of the local governments, as determined\n by the Authority, of any costs, fees, charges or expenses attributable to\n liquidity arrangements incurred in connection with the issuance of bonds by\n the Authority to acquire local obligations of one or more local governments.\n The determination of such allocable shares may be made by the Authority on any\n reasonable basis.\n\n 3. The combination of one or more projects, or the combination of one or more\n projects with one or more other undertakings, facilities, utilities or\n systems, for the purpose of operations and financing, and the pledging of the\n revenues from such combined projects, undertakings, facilities, utilities and\n systems to secure local obligations issued in connection with such combination\n or any part or parts thereof.\n\n 4. The payment of the allocable shares of the local governments, as determined\n by the Authority on any reasonable basis, of rate stabilization funds\n established or required by the Authority in connection with the issuance of\n bonds by the Authority to acquire or provide credit enhancement for local\n obligations of two or more local governments.\n \t\t\t\tAll local governments issuing and selling local obligations to the\n Authority or to be credit enhanced by the Authority are authorized to perform\n any acts, take any action, adopt any proceedings and make and carry out any\n contracts with the Authority that are contemplated by this chapter. Such\n contracts need not be identical among all participants in financings of the\n Authority, but may be structured as determined by the Authority according to\n the needs of the contracting local governments and the Authority.\n \t\t\t\tTo the extent permitted by law for local obligations issued after July 1,\n 2003, local governments may enter into agreements with the Authority that\n provide for a local government to consider and make appropriations from the\n following: (i) funds or revenues from service districts created under Chapter\n 24 (§ 15.2-2400 et seq.) of Title 15.2, (ii) funds or revenues\n accumulated and held by the local government, or (iii) any funds or revenues\n to be received or generated by the local government in amounts sufficient to\n pay all or a specified portion of the amounts set forth in subsection A or to\n make deposits into the special fund or funds provided for in subsections B and\n C and to pledge and apply the amounts so appropriated for such purposes.\n\nHISTORY: 1984, c. 699; 1985, c. 67; 1998, c. 399; 2003, c. 561; 2023, cc. 440,\n441.","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}}