                                 CODE OF VIRGINIA

ISSUANCE OF BONDS OF AUTHORITY (§ 22.1-167)

In order to provide funds for the purchase of local school bonds as authorized
by § 22.1-166, to provide funds for the making of loans to local school boards
as authorized by § 22.1-166.1, or to provide funds for the making of grants to
local school boards as authorized by § 22.1-166.2, the Board of Commissioners
is hereby authorized to provide by resolution, at one time or from time to time,
for the issuance of bonds of the Authority in such amount or amounts as the
Board of Commissioners shall determine. Such bonds of the Authority shall be
payable solely from funds of the Authority, including, without limitation, all
or any combination of the following sources: (i) payments of principal of and
interest on local school bonds purchased by the Authority, (ii) the proceeds of
the sale of any such local school bonds, (iii) payments of principal of and
interest on obligations transferred to the Authority from the Literary Fund,
(iv) the proceeds of the sale of any such obligations, (v) any moneys
transferred to the Authority from the Literary Fund, (vi) payments of principal
of and interest on loans made to local school boards, and (vii) any funds
authorized by the General Assembly from the Literary Fund or otherwise
appropriated by the General Assembly, as shall be provided by the resolution of
the Board of Commissioners authorizing any such bonds. Bonds of the Authority
issued under the provisions of this chapter shall not be deemed to constitute a
debt of the Commonwealth or a pledge of the faith or credit of the Commonwealth,
and all bonds of the Authority shall contain on the face thereof a statement to
the effect that neither the faith and credit nor the taxing power of the
Commonwealth or of any political subdivision thereof is or shall be pledged to
the payment of the principal of or the interest on such bonds.
		The bonds of each issue shall be dated, shall bear interest and shall mature
at such time or times, not exceeding thirty years from their date or dates, as
may be determined by the Board of Commissioners and may be made redeemable
before maturity, at the option of the Board of Commissioners, at such price or
prices and under such terms and conditions as may be fixed by the Board of
Commissioners prior to the issuance of the bonds. The principal and interest of
such bonds may be made payable in any lawful medium. The Board of Commissioners
shall determine the form of the bonds, including any interest coupons to be
attached thereto, and the manner of execution of the bonds and shall fix the
denomination or denominations of the bonds and the place or places of payment of
principal and interest thereof, which may be at the office of the State
Treasurer or at any bank or trust company within or without the Commonwealth. If
any officer whose signature or a facsimile of whose signature appears on any
bonds or coupons shall cease to be such officer before the delivery of such
bonds, such signature or such facsimile shall nevertheless be valid and
sufficient for all purposes the same as if he had remained in office until such
delivery. All bonds issued under the provisions of this chapter shall have and
are hereby declared to have, as between successive holders, all the qualities
and incidents of negotiable instruments under the negotiable instruments law of
the Commonwealth. The bonds may be issued in coupon or in registered form or
both, as the Board of Commissioners may determine, and provision may be made for
the registration of any coupon bonds as to principal alone and as to both
principal and interest and for the reconversion of any bonds registered as to
both principal and interest into coupon bonds. The Board of Commissioners may
sell such bonds in such manner, either at public or at private sale, and for
such price as it may determine to be for the best interests of the Authority.
The proceeds of such bonds shall be disbursed for the purposes for which such
bonds were issued under such restrictions, if any, as the resolution authorizing
the issuance of such bonds or the trust indenture provided for in § 22.1-171
may provide. Prior to the preparation of definitive bonds, the Board of
Commissioners may under like restrictions issue temporary bonds, with or without
coupons, exchangeable for definitive bonds when such bonds shall have been
executed and are available for delivery. The Board of Commissioners may also
provide for the replacement of any bond which shall become mutilated or shall be
destroyed or lost. Such bonds may be issued without any other proceedings or the
happening of any other conditions or things than the proceedings, conditions,
and things which are specified and required by this chapter.

HISTORY: Code 1950, § 22-29.7; 1962, c. 194; 1972, c. 745; 1980, c. 559; 1990,
c. 909.