                                 CODE OF VIRGINIA

COVERED INSTITUTIONS; OPERATIONAL AUTHORITY; FINANCIAL OPERATIONS; POWER TO
ISSUE BONDS, NOTES, OR OTHER OBLIGATIONS (§ 23.1-1015)

A. Notwithstanding the provisions of &#xA7; 23.1-1119, a covered institution may
(i) issue bonds, notes, or other obligations for any purpose that is consistent
with its institutional mission, including to (a) finance or refinance any
project, (b) appropriately manage operational cash flows, (c) provide for
short-term financing, (d) refund bonds, notes, or other obligations issued by or
on behalf of such institution, or otherwise, including bonds, notes, or other
obligations or obligations not then subject to redemption, and (ii) guarantee,
assume, or otherwise agree to pay, in whole or in part, indebtedness issued by
such institution or any affiliated entity for managing operational cash flows or
resulting in the acquisition or construction of facilities for the benefit of
such institution or the refinancing thereof.

B. Nothing in this article shall preclude a covered institution from
participation in any financing program or bond issue established and implemented
by the Commonwealth or any agency of the Commonwealth, including (i) any
financing program or bond issue under Article X, Section 9 (b) or 9 (c) of the
Constitution of Virginia and (ii) any financing program or bond issue under
Article X, Section 9 (d) of the Constitution of Virginia undertaken by the
Treasury Board, the Virginia College Building Authority, or the Virginia Public
Building Authority if such institution is otherwise eligible and approved to
participate and is otherwise able to fulfill any requirements that may be
imposed upon it by virtue of its participation.

C. Notwithstanding Article 8 (&#xA7; 2.2-2415 et seq.) of Chapter 24 of Title
2.2, Chapter 11 (&#xA7; 23.1-1100 et seq.), and &#xA7; 23.1-2205, each covered
institution may issue bonds, notes, or other obligations consistent with debt
capacity and management policies and guidelines established by its governing
board without (i) obtaining the consent of any legislative body, elected
official, commission, board, bureau, political subdivision, or agency of the
Commonwealth; (ii) any proceedings or conditions other than those specifically
required by this article; (iii) the approval required by the provisions of
Article 8 (&#xA7; 2.2-2415 et seq.) of Chapter 24 of Title 2.2; or (iv) any
regulation or procedure, including a review or approval procedure, adopted
pursuant to Chapter 11 (&#xA7; 23.1-1100 et seq.).

D. Each covered institution may issue such types of bonds, notes, or other
obligations as it determines are appropriate and consistent with debt capacity
and management policies and guidelines established by its governing board,
including bonds, notes, or other obligations payable as to principal and
interest from any one or more of the following sources: (i) its revenues
generally; (ii) income and revenues derived from the operation, sale, or lease
of a particular project, whether or not it is financed or refinanced from the
proceeds of such bonds, notes, or other obligations; (iii) funds realized from
the enforcement of security interests or other liens or obligations securing
such bonds, notes, or other obligations; (iv) proceeds from the sale of bonds,
notes, or other obligations; (v) payments under letters of credit, policies of
municipal bond insurance, guarantees, or other credit enhancements; (vi) any
reserve or sinking funds created to secure such payment; (vii) accounts
receivable of such institution; or (viii) other available funds of such
institution.

E. Any bonds, notes, or other obligations may be supported by any grant,
contribution, or appropriation from a participating political subdivision, the
covered institution, the Commonwealth, any political subdivision, agency, or
instrumentality of the Commonwealth, any federal agency, or any unit, private
corporation, partnership, association, or individual.

F. Bonds, notes, or other obligations of a covered institution are for an
essential public and governmental purpose.

G. It is lawful for any bank or trust company within or outside the Commonwealth
to serve as depository of the proceeds of bonds, notes, or other obligations or
other revenues of a covered institution, furnish indemnifying bonds, notes, or
other obligations, or pledge such securities as may be required by such
institution, provided that any such deposits are collateralized in accordance
with the Security for Public Deposits Act (&#xA7; 2.2-4400 et seq.) in the case
of a bank or savings institution or Article 3 (&#xA7; 6.2-1047 et seq.) of
Chapter 10 of Title 6.2 in the case of a trust company.

HISTORY: 2005, cc. 933, 945, § 23-38.108; 2016, c. 588.