                                 CODE OF VIRGINIA

DISPOSITION OF FACILITIES FINANCED UNDER ARTICLE WHEN PART OF DEBT REMAINS
OUTSTANDING (§ 10.1-647)

No facility financed from the revolving fund under the provisions of this
article, in whole or in part, shall be sold by an entity when any portion of the
debt owed to the revolving fund remains unpaid. However, if the purchaser is an
entity having the taxing power, then such sale may be made even though all or a
portion of the debt to the revolving fund remains unpaid, if the purchasing
entity agrees to assume the obligation to repay the outstanding debt and all
interest thereon. If such sale is approved by the Board, then the purchasing
entity shall be solely liable for the obligations undertaken by the principal
debtor, and the principal debtor shall be released therefrom.

HISTORY: 1970, c. 591, § 21-11.12; 1988, c. 891.