                                 CODE OF VIRGINIA

AUTHORITY TO ISSUE BONDS; SOURCE OF PAYMENT (§ 15.2-5607)

The authority is authorized to issue bonds from time to time in its discretion
for the purpose of paying all or any part of the cost of acquiring, purchasing,
constructing, reconstructing, improving or extending any project and acquiring
necessary land and equipment therefor. The authority may issue such types of
bonds as it may determine, including (without limiting the generality of the
foregoing) bonds payable as to principal and interest: (i) from its revenues
generally; (ii) exclusively from the income and revenues of a particular
project; or (iii) exclusively from the income and revenues of certain designated
projects, whether or not they are financed in whole or in part from the proceeds
of such bonds.
		Any such bonds may be additionally secured by a pledge of any grant or
contribution from a participating locality, the Commonwealth or any political
subdivision, agency or instrumentality thereof, any federal agency or any unit,
private corporation, copartnership, association, or individual, or a pledge of
any income or revenues of the authority, or a mortgage on any project or other
property of the authority, or any contract obligation or undertaking, whether in
the nature of a guaranty or otherwise, of any participating locality. However,
any such contract obligation or undertaking by any participating locality which
is a city or town shall not be considered an indebtedness within the meaning of
any debt limitation or restriction and that any such contract obligation or
undertaking by a participating locality which is a county shall be authorized in
accordance with the provisions of Article VII, Section 10 (b) of the
Constitution of Virginia.
		Neither the members of the board of the authority nor any person executing the
bonds shall be liable personally on the bonds by reason of the issuance thereof.
The bonds and other obligations of the authority (and such bonds and obligations
shall so state on their face) shall not be a debt of the Commonwealth or any
political subdivision thereof other than the participating localities which have
entered into contract obligations or other undertakings with respect to the
repayment thereof as authorized in the preceding paragraph, and neither the
Commonwealth nor any political subdivision thereof other than the authority and,
to the extent provided in the preceding paragraph, participating localities,
shall be liable thereon, nor shall such bonds or obligations be payable out of
any funds or properties other than those of the authority and those created by
contract obligations or undertakings of any participating localities entered
into pursuant to the preceding paragraph. The bonds shall not constitute an
indebtedness within the meaning of any debt limitation or restriction. Bonds of
the authority are declared to be issued for an essential public and governmental
purpose.

HISTORY: Code 1950, § 15-714.20; 1962, c. 393, § 8, § 15.1-1278; 1986, c.
442; 1997, c. 587.