                                 CODE OF VIRGINIA

CONTRACTS ON INTEREST RATES, CURRENCY, CASH FLOW OR ON OTHER BASIS (§ 2.2-4517)

A. Any state entity may enter into any contract or other arrangement that is
determined to be necessary or appropriate to place the obligation or investment
of the state entity, as represented by bonds or investments, in whole or in
part, on the interest rate cash flow or other basis desired by the state entity.
Such contract or other arrangement may include contracts providing for payments
based on levels of, or changes in, interest rates. These contracts or
arrangements may be entered into by the state entity 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
state entity, after giving due consideration to the creditworthiness of the
counterparty or other obligated party, including any rating by a nationally
recognized rating agency, and any other criteria as may be appropriate. The
determinations referred to in this subsection may be made by the Treasury Board,
the governing body of the state entity or any public funds manager with
professional investment capabilities duly authorized by the Treasury Board or
the governing body of any state entity authorized to issue such obligations to
make such determinations.
			As used in this section, &#8220;state entity&#8221; means the Commonwealth
and all agencies, authorities, boards and institutions of the Commonwealth.

B. Any money set aside and pledged to secure payments of bonds or any of the
contracts entered into pursuant to this section may be invested in accordance
with this chapter and may be pledged to and used to service any of the contracts
or other arrangements entered into pursuant to this section.

HISTORY: 2002, c. 407.