                                 CODE OF VIRGINIA

DISSOLUTION AND TERMINATION OF AUTHORITY (§ 15.2-5431.9)

A. Whenever the board of an authority determines that the purposes for which it
was created have been completed or are impractical or impossible and that all
its obligations have been paid or have been assumed by one or more of such
political subdivisions or any authority created thereby or that cash or United
States government securities have been deposited for their payment, it shall
adopt and file with the governing body a resolution declaring such facts. If the
governing body adopts a resolution concurring in such declaration and finding
that the authority should be dissolved, it shall file appropriate articles of
dissolution with the State Corporation Commission. When the affairs of the
authority have been wound up and all of its assets have been distributed, the
governing bodies shall file appropriate articles of termination of corporate
existence with the State Corporation Commission.

B. If any of the governing bodies refuses to adopt a resolution concurring in
such declaration, then the authority may petition the circuit court for any
locality that is a member of the authority to order one or more of such
governing bodies to create a new authority. The circuit court may order the
governing body of the political subdivision requesting dissolution of the
existing authority to adopt an ordinance establishing a new authority to which
the provisions of &#xA7;&#xA7; 15.2-5431.3 through 15.2-5431.6 shall not apply.
Thereafter, the court may order that the assets be divided among the authorities
and, subject to the approval of any debt holder, require the assumption of a
proportionate share of the obligations of the existing authority by the new
authority.

C. Notwithstanding the provisions of subdivision 1 of &#xA7; 15.2-5431.11, an
authority shall continue in existence and shall not be dissolved because the
term for which it was created, including any extensions thereof, has expired,
unless all of such authority&#8217;s functions have been taken over and its
obligations have been paid or have been assumed by one or more political
subdivisions or by an authority created thereby, or cash or United States
government securities have been deposited for their payment.

HISTORY: 2003, c. 643; 2021, Sp. Sess. I, c. 487.