                                 CODE OF VIRGINIA

COVERED INSTITUTIONS; OPERATIONAL AUTHORITY; PROPERTY, GRANTS, AND LOANS (§
23.1-1019)

A. Nothing in this section shall limit or reduce the authority granted to a
covered institution in &#xA7;&#xA7; 23.1-1016 and 23.1-1028 concerning the
planning, design, construction, and implementation of capital projects and
leases.

B. Each covered institution may continue to hold, possess, operate, and dispose
of any real, personal, tangible, or intangible property that such covered
institution held, possessed, or operated prior to the effective date of its
initial management agreement as follows:

   1. For real property, including land, buildings, and any improvements to land
   or buildings, acquired or constructed in whole or in part with general fund
   appropriations or proceeds from a general obligation bond issue under Article
   X, Section 9 (a) or 9 (b) of the Constitution of Virginia, the covered
   institution shall (i) hold, possess, and operate such property in accordance
   with the institution&#8217;s enabling statutes, this article, and any policies
   adopted by the governing board of the institution pursuant to this article and
   (ii) dispose of such property in accordance with general law applicable to
   state-owned property and the institution&#8217;s enabling statutes.

   2. For real property, including land, buildings, and any improvements to land
   or buildings, acquired or constructed either (i) entirely with nongeneral fund
   appropriations or proceeds from a nongeneral fund revenue bond issue under
   Article X, Section 9 (c) or 9 (d) of the Constitution of Virginia or (ii)
   entirely with funds other than funds appropriated by the General Assembly or
   proceeds from a general obligation bond issue under Article X, Section 9 (a)
   or 9 (b) of the Constitution of Virginia, the covered institution shall hold,
   possess, operate, and dispose of such property in accordance with the
   institution&#8217;s enabling statutes, notwithstanding the provisions of this
   article, the approval requirements of subdivision B 1 of &#xA7; 23.1-1301, and
   any policies adopted by the governing board of the institution pursuant to
   this article.

   3. For personal property, the covered institution shall hold, possess,
   operate, and dispose of such property in accordance with the
   institution&#8217;s enabling statutes, this article, and any policies adopted
   by the governing board of the institution pursuant to this article.

C. After the effective date of the initial management agreement, a covered
institution may acquire any real property, construct improvements on real
property pursuant to § 23.1-1016, and acquire any personal property, tangible
or intangible, and hold, possess, operate, and dispose of such real and personal
property as follows:

   1. For real property, including land, buildings, and improvements to land and
   buildings, acquired or constructed with funds appropriated by the General
   Assembly for that purpose or with proceeds from a general obligation bond
   issue under Article X, Section 9 (a) or 9 (b) of the Constitution of Virginia,
   the covered institution shall (i) hold, possess, and operate such property in
   accordance with the institution&#8217;s enabling statutes, this article, and
   any policies adopted by the governing board of the institution pursuant to
   this article, and (ii) dispose of such property in accordance with general law
   applicable to state-owned property and with the covered institution&#8217;s
   enabling statutes.

   2. For real property, including land, buildings, and improvements to land or
   buildings, acquired with any funds in the covered institution&#8217;s
   possession other than funds appropriated by the General Assembly or proceeds
   from a general obligation bond issue under Article X, Section 9 (a) or 9 (b)
   of the Constitution of Virginia, the institution shall hold, possess, operate,
   dispose of, and otherwise deal with such property, or any right, easement,
   estate, or interest in such property, acquired by purchase, exchange, gift,
   assignment, transfer, foreclosure, lease, bequest, devise, operation of law,
   or other means, in accordance with the covered institution&#8217;s enabling
   statutes, notwithstanding the provisions of this article, the approval
   requirements of subdivision B 1 of &#xA7; 23.1-1301, and any policies adopted
   by the governing board of the institution pursuant to this article.

   3. For personal property, the institution shall hold, possess, operate, and
   dispose of such property in accordance with the institution&#8217;s enabling
   statutes, this article, and any policies adopted by the governing board of the
   institution pursuant to this article.

D. With the approval of the Governor or as otherwise provided by law, and
consistent with subsections B and C, a covered institution may (i) sell, assign,
encumber, mortgage, demolish, or otherwise dispose of any project, any other
real, personal, tangible, or intangible property, any right, easement, estate,
or interest in any such project or property, or any deed of trust or mortgage
lien interest owned by it, under its control or custody or in its possession,
and may release or relinquish any right, title, claim, lien, interest, easement,
or demand however acquired, including any equity or right of redemption in
property foreclosed by it, and (ii) do any of the foregoing by public or private
transaction.

E. A covered institution may accept loans, grants, contributions, or other
assistance from the federal government, the Commonwealth, any political
subdivision of the Commonwealth, or any other public or private source to carry
out its mission as a public institution of higher education and any of the
purposes of this article. A covered institution may enter into any agreement or
contract regarding the acceptance, use, or repayment of any such loan, grant,
contribution, or assistance and may enter into other agreements with any such
entity in furtherance of the purposes of this article.

F. Localities may lend or donate money or other property to a covered
institution for any of the institution&#8217;s purposes. Any local government
making a grant or loan may restrict the use of the grant or loan to a specific
project, within or outside such locality.

G. Notwithstanding any other provision of this chapter, no covered institution
shall take action with regard to any real or personal property if such action
would be deemed to be in violation of any requirement or covenant contained in
any outstanding bonds, notes, or other obligations.

HISTORY: 2005, cc. 933, 945, § 23-38.112; 2016, c. 588.