                                 CODE OF VIRGINIA

ORDINANCE, AGREEMENT OR RESOLUTION CREATING AUTHORITY TO INCLUDE ARTICLES OF
INCORPORATION (§ 15.2-5103)

A. The ordinance, agreement or resolution creating an authority shall include
articles of incorporation which shall set forth:

   1. The name of the authority and address of its principal office.

   2. The name of each participating locality and the names, addresses and terms
   of office of the first members of the board of the authority.

   3. The purposes for which the authority is being created and, to the extent
   that the governing body of the locality determines to be practicable,
   preliminary estimates of capital costs, proposals for any specific projects to
   be undertaken by the authority, and preliminary estimates of initial rates for
   services of such projects as certified by responsible engineers.

   4. If there is more than one participating locality, the number of board
   members who shall exercise the powers of the authority and the number from
   each participating locality.

B. Any such ordinance, agreement or resolution that does not set forth the
information required in subdivision 3 of subsection A regarding capital cost
estimates, project proposals and project service rate estimates shall set forth
a finding by the governing body that inclusion of such information is
impracticable.

C. Any ordinance, agreement or resolution adopted pursuant to &#xA7;&#xA7;
15.2-5152 through 15.2-5157 shall provide that any bonds issued by the community
development authority shall be a debt of the authority, not the local
government. Unless otherwise provided in the ordinance which establishes the
authority, the local government shall not retire any part of the bonds or pay
any debt service of an authority out of revenues or funds derived from sources
other than those set out in &#xA7; 15.2-5158, except that, where the authority
finances improvements not contemplated by the original ordinance, the local
government may, by ordinance or resolution, make such provisions for repayment
as are otherwise permitted under general law. This subsection shall have no
effect upon authorities formed pursuant to &#xA7; 15.2-5102.

HISTORY: Code 1950, § 15-764.4; 1950, p. 1315; 1962, c. 623, § 15.1-1242;
1972, cc. 370, 544; 1984, c. 239; 1997, cc. 363, 587.