                                 CODE OF VIRGINIA

CONTRACTS CONCERNING INTEREST RATES, CURRENCY, CASH FLOW OR OTHER BASIS (§
15.2-2626)

A. Any locality may enter into any contract which the governing body of the
locality determines to be necessary or appropriate to place the obligation or
investment of the locality, as represented by the bonds or the investment of
their proceeds, in whole or in part, on the interest rate, cash flow or other
basis desired by the locality, which contract may include without limitation,
contracts commonly known as interest rate swap agreements, and futures or
contracts providing for payments based on levels of, or changes in, interest
rates. These contracts or arrangements may be entered into by the locality in
connection with, or incidental to, entering into, or maintaining any (i)
agreement which secures bonds or (ii) investment, or contract providing for
investment, otherwise authorized by law. These contracts and arrangements may
contain such payment, security, default, remedy, and other terms and conditions
as determined by the governing body of the locality, after giving due
consideration to the creditworthiness of the counterparty or other obligated
party, including any rating by any nationally recognized rating agency, and any
other criteria as may be appropriate.

B. Any money set aside and pledged to secure payments of bonds or any of the
contracts entered into pursuant to this section, may be invested in accordance
with Chapter 45 (&#xA7; 2.2-4500 et seq.) of Title 2.2 and may be pledged to and
used to service any of the contracts or agreements entered into pursuant to this
section.

HISTORY: 1991, c. 668, § 15.1-227.27; 1997, c. 587.