{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/62.1-229.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/62.1-229.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/62.1-229.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/62.1-229.html"}],"law_id":60967,"edition_id":1,"section_id":60967,"structure_id":14580,"section_number":"62.1-229","catch_line":"Loans to local governments or other entities","history":"1986, c. 415; 1996, c. 20; 1999, c. 1012; 2023, c. 97.","full_text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments or other entities as permitted by federal law to finance or refinance the cost of any project. The local governments or other entities to which loans are to be made, the purposes of the loan, the amount of each such loan, the interest rate thereon and the repayment terms thereof, which may vary between loan recipients, 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. Loans may also be made from the Fund, in the Board’s discretion, to a local government (i) for the purpose of correcting onsite sewage disposal problems (small water facility projects) to protect or improve water quality and prevent the pollution of state waters or (ii) which has developed a funding program to provide low-interest loans or other incentives to facilitate the correction of onsite sewage disposal problems (small water facility projects), provided that the moneys may be used only for the program and that the onsite sewage disposal systems to be repaired or upgraded are owned by eligible businesses or individual citizens of the Commonwealth where (a) public health or water quality concerns are present and (b) connection to a public sewer system is not feasible because of location or cost. To be eligible for loan funding, a business shall be located within a locality that is in the Rural Coastal Virginia Community Enhancement Authority, as defined in \u00a7 15.2-7600. Eligible businesses include bed-and-breakfast operations, campgrounds, and restaurants, as those terms are defined in \u00a7 35.1-1, and businesses that use working waterfronts, as defined in \u00a7 15.2-2201.\n\t\tExcept as set forth above, the Authority shall determine the terms and conditions of any loan from the Fund, which may vary between loan recipients. Each loan shall be evidenced by appropriate bonds or notes of the local government or other entity payable to the Fund. The bonds or notes shall have been duly authorized by the local government or other entity 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 or other entity receiving the loan 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 loan from the Fund to the local government or other entity; 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\nWith respect to local governments, levy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the local government;C\n\nCreate and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the loan from the Fund to the local government or other entity 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 or other entity, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable;D\n\nCreate and maintain other special funds as required by the Authority; andE\n\nPerform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund, 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 loan from the Fund and to provide for the remedies of the Fund in the event of any default in the payment of the loan, including, without limitation, any of the following:1\n\nThe 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;2\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 the loan from the Fund made in connection with such combination or any part or parts thereof;3\n\nThe maintenance, replacement, renewal and repair of the project; and4\n\nThe procurement of casualty and liability insurance.\n\t\t\t\tAll local governments or other entities 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 or other entities, but may be structured as determined by the Authority according to the needs of the contracting local governments or other entities and the Fund.\n\t\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 subject to guidelines adopted by the Board.","order_by":null,"text":{"0":{"id":222942,"text":"Except as otherwise provided in this chapter, money in the Fund shall be used solely to make loans to local governments or other entities as permitted by federal law to finance or refinance the cost of any project. The local governments or other entities to which loans are to be made, the purposes of the loan, the amount of each such loan, the interest rate thereon and the repayment terms thereof, which may vary between loan recipients, 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. Loans may also be made from the Fund, in the Board’s discretion, to a local government (i) for the purpose of correcting onsite sewage disposal problems (small water facility projects) to protect or improve water quality and prevent the pollution of state waters or (ii) which has developed a funding program to provide low-interest loans or other incentives to facilitate the correction of onsite sewage disposal problems (small water facility projects), provided that the moneys may be used only for the program and that the onsite sewage disposal systems to be repaired or upgraded are owned by eligible businesses or individual citizens of the Commonwealth where (a) public health or water quality concerns are present and (b) connection to a public sewer system is not feasible because of location or cost. To be eligible for loan funding, a business shall be located within a locality that is in the Rural Coastal Virginia Community Enhancement Authority, as defined in \u00a7 15.2-7600. Eligible businesses include bed-and-breakfast operations, campgrounds, and restaurants, as those terms are defined in \u00a7 35.1-1, and businesses that use working waterfronts, as defined in \u00a7 15.2-2201.\n\t\tExcept as set forth above, the Authority shall determine the terms and conditions of any loan from the Fund, which may vary between loan recipients. Each loan shall be evidenced by appropriate bonds or notes of the local government or other entity payable to the Fund. The bonds or notes shall have been duly authorized by the local government or other entity 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 or other entity receiving the loan covenant to perform any of the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"A"},"1":{"id":222943,"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 loan from the Fund to the local government or other entity; 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":222944,"text":"With respect to local governments, levy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the local government;","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"3":{"id":222945,"text":"Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the loan from the Fund to the local government or other entity 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 or other entity, 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":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"4":{"id":222946,"text":"Create and maintain other special funds as required by the Authority; and","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"5":{"id":222947,"text":"Perform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund, 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 loan from the Fund and to provide for the remedies of the Fund in the event of any default in the payment of the loan, including, without limitation, any of the following:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"6":{"id":222948,"text":"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;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"7":{"id":222949,"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 the loan from the Fund made in connection with such combination or any part or parts thereof;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"8":{"id":222950,"text":"The maintenance, replacement, renewal and repair of the project; and","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"9":{"id":222951,"text":"The procurement of casualty and liability insurance.\n\t\t\t\tAll local governments or other entities 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 or other entities, but may be structured as determined by the Authority according to the needs of the contracting local governments or other entities and the Fund.\n\t\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 subject to guidelines adopted by the Board.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3"}},"ancestry":[{"id":14580,"edition_id":1,"name":"Virginia Water Facilities Revolving Fund","identifier":"22","label":"chapter","depth":2,"order_by":1,"parent_id":12909,"metadata":{},"date_created":"2026-06-26 03:48:45","date_modified":"2026-06-26 03:48:45","permalink":{"id":268801,"object_type":"structure","relational_id":14580,"identifier":"22","token":"62.1\/22","url":"\/62.1\/22\/","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":67684,"structure_id":14580,"section_number":"62.1-224","catch_line":"Definitions","url":"\/62.1-224\/","token":"62.1\/22\/62.1-224","metadata":false},{"id":69712,"structure_id":14580,"section_number":"62.1-225","catch_line":"Creation and management of Fund","url":"\/62.1-225\/","token":"62.1\/22\/62.1-225","metadata":false},{"id":65618,"structure_id":14580,"section_number":"62.1-226","catch_line":"Deposit of money; expenditures; investments","url":"\/62.1-226\/","token":"62.1\/22\/62.1-226","metadata":false},{"id":81412,"structure_id":14580,"section_number":"62.1-227","catch_line":"Annual audit","url":"\/62.1-227\/","token":"62.1\/22\/62.1-227","metadata":false},{"id":82443,"structure_id":14580,"section_number":"62.1-228","catch_line":"Collection of money due Fund","url":"\/62.1-228\/","token":"62.1\/22\/62.1-228","metadata":false},{"id":60967,"structure_id":14580,"section_number":"62.1-229","catch_line":"Loans to local governments or other entities","url":"\/62.1-229\/","token":"62.1\/22\/62.1-229","metadata":false},{"id":56071,"structure_id":14580,"section_number":"62.1-229.1","catch_line":"Loans and grants for agricultural best management practices","url":"\/62.1-229.1\/","token":"62.1\/22\/62.1-229.1","metadata":false},{"id":83106,"structure_id":14580,"section_number":"62.1-229.2","catch_line":"Loans for remediation of contaminated properties","url":"\/62.1-229.2\/","token":"62.1\/22\/62.1-229.2","metadata":false},{"id":80766,"structure_id":14580,"section_number":"62.1-229.3","catch_line":"Loans for land conservation","url":"\/62.1-229.3\/","token":"62.1\/22\/62.1-229.3","metadata":false},{"id":59486,"structure_id":14580,"section_number":"62.1-229.4","catch_line":"Loans for stormwater runoff control best management practices","url":"\/62.1-229.4\/","token":"62.1\/22\/62.1-229.4","metadata":false},{"id":64461,"structure_id":14580,"section_number":"62.1-229.5","catch_line":"Loans for living shorelines","url":"\/62.1-229.5\/","token":"62.1\/22\/62.1-229.5","metadata":false},{"id":78413,"structure_id":14580,"section_number":"62.1-230","catch_line":"Grants to local governments","url":"\/62.1-230\/","token":"62.1\/22\/62.1-230","metadata":false},{"id":64706,"structure_id":14580,"section_number":"62.1-230.1","catch_line":"Loans and grants for regional projects, etc","url":"\/62.1-230.1\/","token":"62.1\/22\/62.1-230.1","metadata":false},{"id":62895,"structure_id":14580,"section_number":"62.1-231","catch_line":"Pledge of loans to secure bonds of Authority","url":"\/62.1-231\/","token":"62.1\/22\/62.1-231","metadata":false},{"id":85402,"structure_id":14580,"section_number":"62.1-231.1","catch_line":"Sale of loans","url":"\/62.1-231.1\/","token":"62.1\/22\/62.1-231.1","metadata":false},{"id":68414,"structure_id":14580,"section_number":"62.1-231.2","catch_line":"Powers of the Authority","url":"\/62.1-231.2\/","token":"62.1\/22\/62.1-231.2","metadata":false},{"id":63228,"structure_id":14580,"section_number":"62.1-232","catch_line":"Liberal construction of chapter","url":"\/62.1-232\/","token":"62.1\/22\/62.1-232","metadata":false}],"previous_section":{"id":82443,"structure_id":14580,"section_number":"62.1-228","catch_line":"Collection of money due Fund","url":"\/62.1-228\/","token":"62.1\/22\/62.1-228","metadata":false},"next_section":{"id":56071,"structure_id":14580,"section_number":"62.1-229.1","catch_line":"Loans and grants for agricultural best management practices","url":"\/62.1-229.1\/","token":"62.1\/22\/62.1-229.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/62.1-229\/","history_text":"

This law was first created in 1986. The record of its establishment is cataloged in chapter 415 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 1986 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1996, chapter 20<\/a>; in 1999, chapter 1012<\/a>; in 2023, chapter 97<\/a>.<\/p>","references":[{"id":67684,"section_number":"62.1-224","catch_line":"Definitions","order_by":null,"url":"\/62.1-224\/"}],"refers_to":[{"id":77758,"section_number":"15.2-2201","catch_line":"Definitions","order_by":null,"url":"\/15.2-2201\/"},{"id":74033,"section_number":"15.2-7600","catch_line":"Authority created; name","order_by":null,"url":"\/15.2-7600\/"},{"id":61152,"section_number":"35.1-1","catch_line":"Definitions","order_by":null,"url":"\/35.1-1\/"}],"permalink":{"id":268823,"object_type":"law","relational_id":60967,"identifier":"62.1-229","token":"62.1\/22\/62.1-229","url":"\/62.1-229\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/62.1-229\/","token":"62.1\/22\/62.1-229","dublin_core":{"Title":"Loans to local governments or other entities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 62.1-229","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> or other entities<\/span> as permitted by federal law<\/span> to finance or refinance the cost of any project<\/span>. The local governments<\/span> or other entities<\/span> to which loans are to be made, the purposes of the loan, the amount of each such loan, the interest rate thereon and the repayment terms thereof, which may vary between loan recipients, 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. Loans may also be made from the Fund<\/span>, in the Board<\/span>’s discretion, to a local government<\/span> (i) for the purpose of correcting onsite sewage disposal problems (small water facility projects<\/span>) to protect or improve water quality and prevent the pollution of state waters or (ii) which has developed a funding program to provide low-interest loans or other incentives to facilitate the correction of onsite sewage disposal problems (small water facility projects<\/span>), provided that the moneys may be used only for the program and that the onsite sewage disposal systems to be repaired or upgraded are owned by eligible businesses or individual citizens of the Commonwealth where (a) public health or water quality concerns are present and (b) connection to a public sewer system is not feasible because of location or cost. To be eligible for loan funding, a business shall be located within a locality that is in the Rural Coastal Virginia Community Enhancement Authority<\/span>, as defined in \u00a7 15.2-7600<\/a>. Eligible businesses include bed-and-breakfast operations, campgrounds, and restaurants, as those terms are defined in \u00a7 35.1-1<\/a>, and businesses that use working waterfronts, as defined in \u00a7 15.2-2201<\/a>.\n\t\tExcept as set forth above, the Authority<\/span> shall determine the terms and conditions of any loan from the Fund<\/span>, which may vary between loan recipients. Each loan shall be evidenced by appropriate bonds<\/span> or notes of the local government<\/span> or other entity payable to the Fund<\/span>. The bonds<\/span> or notes shall have been duly authorized by the local government<\/span> or other entity 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> or other entity receiving the loan 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 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 loan from the Fund<\/span> to the local government<\/span> or other entity; 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 part, for future increases in rents, rates, fees or charges; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> With respect to local governments<\/span>, levy<\/span> and collect ad valorem taxes on all property within the jurisdiction<\/span> of the local government<\/span> subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Create and maintain a special fund<\/span> or funds<\/span> for the payment of the principal of and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> or other entity 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> or other entity, 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

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

E.<\/span> Perform other acts, including the conveyance of, or the granting of liens<\/span> on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund<\/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 loan from the Fund<\/span> and to provide for the remedies of the Fund<\/span> in the event of any default<\/span> in the payment of the loan, including, without limitation, any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> 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; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/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 the loan from the Fund<\/span> made in connection with such combination or any part or parts thereof; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The maintenance, replacement, renewal and repair of the project<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The procurement of casualty and liability insurance.\n\t\t\t\tAll local governments<\/span> or other entities<\/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> or other entities<\/span>, but may be structured as determined by the Authority<\/span> according to the needs of the contracting local governments<\/span> or other entities<\/span> and the Fund<\/span>.\n\t\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 subject to guidelines adopted by the Board<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLOANS TO LOCAL GOVERNMENTS OR OTHER ENTITIES (\u00a7 62.1-229)\n\nExcept as otherwise provided in this chapter, money in the Fund shall be used\nsolely to make loans to local governments or other entities as permitted by\nfederal law to finance or refinance the cost of any project. The local\ngovernments or other entities to which loans are to be made, the purposes of the\nloan, the amount of each such loan, the interest rate thereon and the repayment\nterms thereof, which may vary between loan recipients, shall be designated in\nwriting by the Board to the Authority following consultation with the Authority.\nNo loan from the Fund shall exceed the total cost of the project to be financed\nor the outstanding principal amount of the indebtedness to be refinanced plus\nreasonable financing expenses. Loans may also be made from the Fund, in the\nBoard’s discretion, to a local government (i) for the purpose of\ncorrecting onsite sewage disposal problems (small water facility projects) to\nprotect or improve water quality and prevent the pollution of state waters or\n(ii) which has developed a funding program to provide low-interest loans or\nother incentives to facilitate the correction of onsite sewage disposal problems\n(small water facility projects), provided that the moneys may be used only for\nthe program and that the onsite sewage disposal systems to be repaired or\nupgraded are owned by eligible businesses or individual citizens of the\nCommonwealth where (a) public health or water quality concerns are present and\n(b) connection to a public sewer system is not feasible because of location or\ncost. To be eligible for loan funding, a business shall be located within a\nlocality that is in the Rural Coastal Virginia Community Enhancement Authority,\nas defined in \u00a7 15.2-7600. Eligible businesses include bed-and-breakfast\noperations, campgrounds, and restaurants, as those terms are defined in \u00a7\n35.1-1, and businesses that use working waterfronts, as defined in \u00a7 15.2-2201.\n\t\tExcept as set forth above, the Authority shall determine the terms and\nconditions of any loan from the Fund, which may vary between loan recipients.\nEach loan shall be evidenced by appropriate bonds or notes of the local\ngovernment or other entity payable to the Fund. The bonds or notes shall have\nbeen duly authorized by the local government or other entity 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 or other entity receiving the loan covenant to\nperform 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 loan from the Fund to the\nlocal government or other entity; and (iii) any amounts necessary to create and\nmaintain any required reserve, including any rate stabilization fund deemed\nnecessary or appropriate by the Authority to offset the need, in whole or part,\nfor future increases in rents, rates, fees or charges;\n\nB. With respect to local governments, levy and collect ad valorem taxes on all\nproperty within the jurisdiction of the local government subject to local\ntaxation sufficient to pay the principal of and premium, if any, and interest on\nthe loan from the Fund to the local government;\n\nC. Create and maintain a special fund or funds for the payment of the principal\nof and premium, if any, and interest on the loan from the Fund to the local\ngovernment or other entity and any other amounts becoming due under any\nagreement entered into in connection with the loan, or for the operation,\nmaintenance, repair or replacement of the project or any portions thereof or\nother property of the local government or other entity, and deposit into any\nfund or funds amounts sufficient to make any payments on the loan as they become\ndue and payable;\n\nD. Create and maintain other special funds as required by the Authority; and\n\nE. Perform other acts, including the conveyance of, or the granting of liens on\nor security interests in, real and personal property, together with all rights,\ntitle and interest therein, to the Fund, or take other actions as may be deemed\nnecessary or desirable by the Authority to secure payment of the principal of\nand premium, if any, and interest on the loan from the Fund and to provide for\nthe remedies of the Fund in the event of any default in the payment of the loan,\nincluding, without limitation, any of the following:\n\n 1. The procurement of insurance, guarantees, letters of credit and other forms\n of collateral, security, liquidity arrangements or credit supports for the\n loan from any source, public or private, and the payment therefor of premiums,\n fees or other charges;\n\n 2. 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 the loan from the Fund made in connection with such\n combination or any part or parts thereof;\n\n 3. The maintenance, replacement, renewal and repair of the project; and\n\n 4. The procurement of casualty and liability insurance.\n \t\t\t\tAll local governments or other entities borrowing money from the Fund are\n authorized to perform any acts, take any action, adopt any proceedings and\n make and carry out any contracts that are contemplated by this chapter. Such\n contracts need not be identical among all local governments or other entities,\n but may be structured as determined by the Authority according to the needs of\n the contracting local governments or other entities and the Fund.\n \t\t\t\tSubject to the rights, if any, of the registered owners of any of the\n bonds of the Authority, the Authority may consent to and approve any\n modification in the terms of any loan subject to guidelines adopted by the\n Board.\n\nHISTORY: 1986, c. 415; 1996, c. 20; 1999, c. 1012; 2023, c. 97.","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}}