                                 CODE OF VIRGINIA

PROCEEDS OF BONDS (§ 15.2-5127)

The proceeds of bonds issued pursuant to § 15.2-5125 shall be used solely for
the payment of the cost of the system or systems for which they were issued and
shall be disbursed in such manner and under such restrictions, if any, as the
authority may provide in the authorizing resolution or in any trust agreement.
If the proceeds of the bonds, by error of estimates or otherwise, are less than
such cost, additional bonds may in like manner be issued to provide the amount
of such deficit and, unless otherwise provided in the authorizing resolution or
in the trust agreement securing them, shall be deemed to be of the same issue
and entitled to payment from the same fund without preference or priority of the
bonds first issued for the same purpose. If the proceeds of the bonds of any
issue exceed the amount required for the purpose for which such bonds were
issued, the surplus shall be deposited to the credit of the sinking fund for
such bonds.

HISTORY: Code 1950, § 15-764.15; 1950, p. 1322; 1962, c. 623, § 15.1-1253;
1997, c. 587.