                                 CODE OF VIRGINIA

CONTRACTS CONCERNING INTEREST RATES, CURRENCY, CASH FLOW AND OTHER BASIS (§
15.2-5431.24)

A. Any authority may enter into any contract that the authority determines to be
necessary or appropriate to place the obligation or investment of the authority,
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 authority.
Such contracts 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. Such contracts or
arrangements may be entered into by the authority in connection with, or
incidental to, entering into or maintaining any (i) agreement that 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 authority,
after giving due consideration to the creditworthiness of the counterparty or
other obligated party, including any rating by any nationally recognized rating
agency.

B. Any money set aside and pledged to secure payments of bonds or any 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, and any other criteria as may be appropriate.

HISTORY: 2003, c. 643.