                                 CODE OF VIRGINIA

ISSUANCE OF BONDS, NOTES AND OTHER OBLIGATIONS OF AUTHORITY (§ 15.2-4908)

A. Subject to the limitations of Chapter 50 (&#xA7; 15.2-5000 et seq.) of this
title, the authority may issue bonds from time to time in its discretion, for
any of its purposes, including the payment of all or any part of the cost of
authority facilities and including the payment or retirement of bonds previously
issued by it. All bonds issued by the authority shall be payable solely from the
revenues and receipts derived from the leasing or sale by the authority of its
facilities or any part thereof or from payments received by the authority in
connection with its loans, and the authority may issue such types of bonds as it
may determine, including, without limiting the generality of the foregoing,
bonds payable, both as to principal and interest: (i) from its revenues and
receipts generally; (ii) exclusively from the revenues and receipts of a
particular facility or loan; or (iii) exclusively from the revenues and receipts
of certain designated facilities or loans whether or not they are financed in
whole or in part from the proceeds of such bonds. Unless otherwise provided in
the proceeding authorizing the issuance of the bonds, or in the trust indenture
securing the bonds, all bonds shall be payable solely and exclusively from the
revenues and receipts of a particular facility or loan. Bonds may be executed
and delivered by the authority at any time and from time to time, may be in such
form and denominations and of such terms and maturities, may be in registered or
bearer form either as to principal or interest or both, may be payable in such
installments and at such time or times not exceeding 40 years from the date
thereof, may be payable at such place or places whether within or outside the
Commonwealth, may bear interest at such rate or rates, may be payable at such
time or times, may be evidenced in such manner, and may contain such provisions
not inconsistent herewith, all as shall be determined by the board of directors.
If deemed advisable by the board of directors, there may be retained in the
proceedings under which any bonds of the authority are authorized to be issued
an option to redeem all or any part thereof, at such price or prices and after
such notice or notices and on such terms and conditions as may be determined by
the board of directors and as may be briefly recited on the face of the bonds,
but nothing herein contained shall be construed to confer on the authority any
right or option to redeem any bonds except as may be provided in the proceedings
under which they shall be issued. Any bonds of the authority may be sold at
public or private sale in such manner and from time to time as may be determined
by the board of directors of the authority to be most advantageous, and the
authority may pay all costs, premiums and commissions which its board of
directors may deem necessary or advantageous in connection with the issuance
thereof. Issuance by the authority of one or more series of bonds for one or
more purposes shall not preclude it from issuing other bonds in connection with
the same facility or any other facility, but the proceedings whereunder any
subsequent bonds may be issued shall recognize and protect any prior pledge or
mortgage made for any prior issue of bonds. Any bonds of the authority at any
time outstanding may from time to time be refunded by the authority by the
issuance of its refunding bonds in such amount as the board of directors may
deem necessary, but not exceeding an amount sufficient to refund the principal
of the bonds so to be refunded, together with any unpaid interest thereon and
any costs, premiums or commissions necessary to be paid in connection therewith.
Any such refunding may be effected whether the bonds to be refunded shall have
then matured or shall thereafter mature, either by sale of the refunding bonds
and the application of the proceeds thereof to the payment of the bonds to be
refunded thereby, or by the exchange of the refunding bonds for the bonds to be
refunded thereby, with the consent of the holders of the bonds so to be
refunded, and regardless of whether the bonds to be refunded were issued in
connection with the same facilities or separate facilities, and regardless of
whether the bonds proposed to be refunded are payable on the same date or on
different dates or are due serially or otherwise. The determination of the form,
denominations, maturities, redemption provisions, places of payment, interest
rate or rates, payment installations, dates and all other terms and provisions
of bonds as authorized in this section may be made by the board of directors in
such manner as the board may provide, including the determination by reference
to indices and formulas or by agents designated by the board of directors under
guidelines established by it.

B. All bonds shall be signed by the chairman or vice-chairman of the authority
or shall bear his facsimile signature, and the corporate seal of the authority
or a facsimile thereof shall be impressed or imprinted thereon and attested by
the signature of the secretary (or the secretary-treasurer) or the assistant
secretary (or assistant secretary-treasurer) of the authority or shall bear his
facsimile signature, and any coupons attached thereto shall bear the facsimile
signature of the chairman. In case any officer whose signature or a facsimile
signature appears on any bonds or coupons ceases to be an officer before
delivery of such bonds, such signature or such facsimile shall nevertheless be
valid and sufficient for all purposes the same as if he had remained in office
until such delivery. When the signatures of both the chairman or the
vice-chairman and the secretary (or the secretary-treasurer) or the assistant
secretary (or the assistant secretary-treasurer) are facsimiles, the bonds shall
be authenticated by a corporate trustee or other authenticating agent approved
by the authority.

C. If the proceeds derived from a particular bond issue, due to error of
estimates or otherwise, are less than the cost of the authority facilities for
which such bonds were issued, additional bonds may in like manner be issued to
provide the amount of such deficit and, unless otherwise provided in the
proceedings authorizing the issuance of the bonds of such issue or in the trust
indenture securing the same, shall be deemed to be of the same issue and shall
be entitled to payment from the same fund without preference or priority of the
bonds of the first issue. If the proceeds of the bonds of any issue shall exceed
such cost, the surplus may be deposited to the credit of the sinking fund for
such bonds or may be applied to the payment of the cost of any additions,
improvements or enlargements of the authority facilities for which such bonds
shall have been issued.

D. Prior to the preparation of definitive bonds, the authority may, under like
restrictions, issue interim receipts or temporary bonds with or without coupons,
exchangeable for definitive bonds when such bonds shall have been executed and
are available for delivery. The authority may also provide for the replacement
of any bonds which are mutilated, destroyed or lost. Bonds may be issued under
the provisions of this chapter without obtaining the consent of any department,
division, commission, board, bureau or agency of the Commonwealth, and without
any other proceedings or the happening of any other conditions or things other
than those proceedings, conditions or things which are specifically required by
this chapter; however, nothing contained in this chapter shall be construed as
affecting the powers and duties now conferred by law upon the State Corporation
Commission.

E. All bonds issued under the provisions of this chapter shall have and are
hereby declared to have all the qualities and incidents of and shall be and are
hereby made negotiable instruments under the Uniform Commercial Code of Virginia
(&#xA7; 8.1A-101 et seq.), subject only to provisions respecting registration of
the bonds.

F. In addition to all other powers granted to the authority by this chapter, the
authority may issue, from time to time, notes or other obligations of the
authority for any of its authorized purposes. The provisions of this chapter
which relate to bonds or revenue bonds shall apply to such notes or other
obligations insofar as such provisions may be appropriate.

HISTORY: 1966, c. 651, § 15.1-1379; 1968, c. 687; 1983, c. 514; 1991, c. 6;
1997, c. 587; 2003, cc. 353, 683.