                                 CODE OF VIRGINIA

POWER TO ENTER INTO FINANCING AGREEMENTS (§ 15.2-1816)

In addition to other powers granted by law, every local government may, by
ordinance, enter into a financing agreement as described in this section and may
as part of that financing agreement (i) convey title to any property that is
part of a project as defined in this chapter to a conduit or other entity in
exchange for consideration provided for under the financing agreement; (ii)
assign, pledge to, and create a lien in favor of a conduit or other entity, and
permit the conduit or other entity to reassign, pledge to, and create a lien in
favor of a private capital funding source, any revenues derived from the project
being financed as provided for under the financing agreement; (iii) enter into a
lease-leaseback arrangement for a term not to exceed 99 years, under which the
private capital funding source will lease from the conduit or other entity, and
the conduit or other entity shall lease back from the private capital funding
source, the conveyed project. In addition, the conduit or other entity has the
power to contribute to the local government any funds received by it in excess
of the payments it is required to make to the private capital funding source
under the lease-leaseback arrangement and has the power to convey the conveyed
property back to the local government when the property is no longer encumbered
by any lien or lease in favor of the funding source. The local government and
the conduit or other entity may enter into agreements or contracts under which
the local government may maintain or administer the conveyed property under the
project or may collect rents or fees on behalf of the conduit or other entity.
The parties may modify or extend the financing agreement subject to approval by
the local government. The local government may enter into a financing agreement
under this section either through a competitive selection process or by direct
negotiations with a private capital funding source, as determined by the local
government or as otherwise provided by law.

HISTORY: 2011, cc. 562, 660.