                                 CODE OF VIRGINIA

BOND ISSUES (§ 15.2-5943)

A. A bond issuer 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.

B. The bonds of any issue shall be payable solely from the property or receipts
of the bond issuer, or other security specifically pledged by the bond issuer 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 Authority by the State
   Comptroller pursuant to &#xA7; 15.2-5940; and

   5. Proceeds of refunding bonds.

C. Bonds shall be authorized by resolution of the bond issuer and may be secured
by a trust agreement by and between the bond issuer 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 exceeding 40 years from their respective dates of
   issue;

   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 bond issuer,
   including private and negotiated sales.

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 bond issuer 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 bond issuer 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 bond issuer determines
   appropriate.

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

F. The bond issuer 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 bond issuer 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 bond issuer, 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 bond issuer need
be filed or recorded in any public record other than the records of the bond
issuer 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 bond issuer 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 for the public purposes of
realizing savings in the effective costs of debt service, directly or through a
debt restructuring, for alleviating impending or actual default and may be
issued in one or more series in an amount in excess of that of the bonds to be
refunded.

HISTORY: 2020, cc. 538, 539.