                                 CODE OF VIRGINIA

BOND ISSUES (§ 15.2-5931)

A. The City of Virginia Beach may at any time and from time to time issue bonds
for any valid purpose, including the establishment of reserves and the payment
of interest. As used in this chapter, &#8220;bonds&#8221; includes notes of any
kind, interim certificates, refunding bonds, or any other evidence of
obligation, provided that such bonds are issued by the City of Virginia Beach,
the City of Virginia Beach Development Authority, or a community development
authority formed by the City of Virginia Beach pursuant to the provisions of
Article 6 (&#xA7; 15.2-5152 et seq.) of Chapter 51 for the purpose of developing
the sports and entertainment district.

B. The bonds of any issue shall be payable solely from the property or receipts
of the City of Virginia Beach, or other security specifically pledged by the
City of Virginia Beach to the payment thereof, including, but not limited to:

   1. Taxes, fees, charges, or other revenues;

   2. Payments by financial institutions, insurance companies, or others pursuant
   to letters or lines of credit, policies of insurance, or purchase agreements;

   3. Investment earnings from funds or accounts maintained pursuant to a bond
   resolution or trust agreement;

   4. Sales and use tax revenues remitted to the City of Virginia Beach by the
   State Comptroller pursuant to &#xA7; 15.2-5933; and

   5. Proceeds of refunding bonds.

C. Bonds shall be authorized by resolution of the City of Virginia Beach and may
be secured by a trust agreement by and between the City of Virginia Beach and a
corporate trustee or trustees, which may be any trust company or bank having the
powers of a trust company within or outside the Commonwealth. The bonds shall:

   1. Be issued at, above, or below par value, for cash or other valuable
   consideration, and mature at a time or times, whether as serial bonds or as
   term bonds or both, not later than June 30 of the fiscal year in which the
   City of Virginia Beach&#8217;s entitlement to tax revenues authorized by this
   chapter expires pursuant to the provisions of subdivision A 2 of &#xA7;
   15.2-5933;

   2. Bear interest at the fixed or variable rate or rates determined by the
   method provided in the resolution or trust agreement;

   3. Be payable at a time or times, in the denominations and form, and carry the
   registration and privileges as to conversion and for the replacement of
   mutilated, lost, or destroyed bonds as the resolution or trust agreement may
   provide;

   4. Be payable in lawful money of the United States at a designated place;

   5. Be subject to the terms of purchase, payment, redemption, refunding, or
   refinancing that the resolution or trust agreement provides; and

   6. Be sold in the manner and upon the terms determined by the City of Virginia
   Beach, including private (negotiated) sale.

D. Any resolution or trust agreement may contain provisions that shall be a part
of the contract with the holders of the bonds as to:

   1. Pledging, assigning, or directing the use, investment, or disposition of
   receipts of the City of Virginia Beach or proceeds or benefits of any contract
   and conveying or otherwise securing any property rights;

   2. The setting aside of loan funding deposits, debt service reserves,
   capitalized interest accounts, cost of issuance accounts, and sinking funds,
   and the regulation, investment, and disposition thereof;

   3. Limitations on the purpose to which or the investments in which the
   proceeds of sale of any issue of bonds may be applied and restrictions to
   investments of revenues or bond proceeds in government obligations for which
   principal and interest are unconditionally guaranteed by the United States of
   America;

   4. Limitations on the issuance of additional bonds and the terms upon which
   additional bonds may be issued and secured and may rank on a parity with, or
   be subordinate or superior to, other bonds;

   5. The refunding or refinancing of outstanding bonds;

   6. The procedure, if any, by which the terms of any contract with bondholders
   may be altered or amended and the amount of bonds the holders of which must
   consent thereto, and the manner in which consent shall be given;

   7. Defining the acts or omissions that shall constitute a default in the
   duties of the City of Virginia Beach to bondholders and providing the rights
   or remedies of such holders in the event of a default, which may include
   provisions restricting individual right of action by bondholders;

   8. Providing for guarantees, pledges of property, letters of credit, or other
   security, or insurance for the benefit of bondholders; and

   9. Any other matter relating to the bonds that the City of Virginia Beach
   determines appropriate.

E. No member of the governing body of the City of Virginia Beach nor any person
executing the bonds on behalf of the City of Virginia Beach shall be liable
personally for the bonds or subject to any personal liability by reason of the
issuance of the bonds.

F. The City of Virginia Beach may enter into agreements with agents, banks,
insurers, any political subdivision of the Commonwealth, or others for the
purpose of enhancing the marketability of, or as security for, its bonds.

G. A pledge by the City of Virginia Beach of its revenues as security for an
issue of bonds shall be valid and binding from the time the pledge is made.
			The revenues pledged shall immediately be subject to the lien of the pledge
without any physical delivery or further act, and the lien of any pledge shall
be valid and binding against any person having any claim of any kind in tort,
contract, or otherwise against the City of Virginia Beach, irrespective of
whether the person has notice.
			No resolution, trust agreement or financing statement, continuation
statement, or other instrument adopted or entered into by the City of Virginia
Beach need be filed or recorded in any public record other than the records of
the City of Virginia Beach in order to perfect the lien against third persons,
regardless of any contrary provision of public general or public local law.

H. Except to the extent restricted by an applicable resolution or trust
agreement, any holder of bonds issued under this chapter or a trustee acting
under a trust agreement entered into under this chapter may, by any suitable
form of legal proceedings, protect and enforce any rights granted under the laws
of the Commonwealth or by any applicable resolution or trust agreement.

I. The City of Virginia Beach may issue bonds to refund any of its bonds then
outstanding, including the payment of any redemption premium and any interest
accrued or to accrue to the earliest or any subsequent date of redemption,
purchase, or maturity of the bonds. Refunding bonds may be issued, directly or
through a debt restructuring, for the public purposes of realizing savings in
the effective costs of debt service and alleviating impending or actual default,
or either, and may be issued in one or more series in an amount in excess of
that of the bonds to be refunded.

HISTORY: 2019, c. 793; 2020, c. 467; 2021, c. 5.