                                 CODE OF VIRGINIA

BORROWING TO PURCHASE REAL ESTATE (§ 23.1-1117)

A. Any institution may, with the approval of the Governor and upon the
affirmative vote of at least two-thirds of its board, (i) borrow for and in the
name of the institution such sums as it determines necessary for the acquisition
of improved or unimproved real estate whether such acquisition is for the
purpose of erecting a project and (ii) secure payment of such debts by a lien on
such real estate or the pledge of any endowment funds or unrestricted gifts from
private sources available for the use of such institution that are not required
by law or by previous binding contract to be devoted to some other purpose.

B. Bonds issued by an institution pursuant to this section and the interest
thereon shall be paid only from the real estate, endowment funds, or
unrestricted gifts from private sources pledged to secure the bonds so issued or
the proceeds from the sale or liquidation of such real estate, funds, or gifts,
and shall not constitute a general obligation of such institution, the
Commonwealth, the Governor, the members of the board, or any person executing
the bonds so issued.

C. Any bonds issued by an institution pursuant to this section are securities in
which all public officers and bodies of the Commonwealth and its political
subdivisions, insurance companies and associations, and savings banks and
savings institutions, including savings and loan associations, in the
Commonwealth may properly and legally invest funds under their control.

D. Any bonds issued pursuant to this section, the transfer of such bonds, or the
income from such bonds, including any profit derived from the sale of such
bonds, is exempt from taxation by the Commonwealth or any locality or political
subdivision of the Commonwealth.

E. Any board resolution authorizing the issuance of bonds pursuant to this
section may contain any provision authorized by this chapter in connection with
the issuance of bonds by institutions. Such provision shall be part of the
contract with the holders of such bonds.

HISTORY: 1970, c. 609, § 23-30.02; 1981, c. 505; 2016, c. 588.