                                 CODE OF VIRGINIA

POWERS; ACQUISITION OR DISPOSITION OF EQUIPMENT (§ 23.1-1206)

A. The Authority may (i) acquire equipment or any interest in equipment by
purchase, exchange, gift, lease, or otherwise; (ii) sell, exchange, donate,
convey, lease, and dispose of such equipment or any portion of or interest in
such equipment, including security interests in such equipment; and (iii) retain
or receive security interests in such equipment.

B. Notwithstanding any other provision of law to the contrary, eligible
institutions may grant security interests in or other liens on equipment held or
acquired by the eligible institution under any lease or agreement of sale with
the Authority.

C. The Authority may acquire equipment with any funds of the Authority available
for such purpose. Acquisition and disposition of equipment may be at public or
private sale and for such price and on such terms as the Authority determines,
provided that the Authority finances the acquisition of equipment for sale to
eligible institutions only pursuant to standards and procedures approved through
the Commonwealth&#8217;s budget and appropriation process. The budget document
shall present any lease payments and the corresponding total value of equipment
to be acquired by each eligible institution. Each eligible institution shall
make available such additional detail on specific equipment to be purchased as
may be requested by the Governor or the General Assembly. If emergency
acquisitions and leases are necessary when the General Assembly is not in
session, the Governor may approve such acquisitions and leases. Prior to such
acquisitions and leases, the Governor shall submit such proposed acquisitions
and leases to the House Committee on Appropriations and the Senate Committee on
Finance and Appropriations for their review and approval.

D. The Authority may establish and maintain such accounts as it deems
appropriate to provide funds for acquisition of equipment on a continuing basis.
The Authority may deposit in such accounts such funds as it deems appropriate,
including the proceeds of any Authority bonds issued to finance the purchase of
equipment and payments made to the Authority under equipment lease or sale
agreements with eligible institutions or other entities. Any moneys held in such
accounts may be (i) used to secure payment of principal of and interest on any
Authority bonds, whether issued to finance the purchase of equipment, issued to
pay administrative costs of the authority, or incurred in connection with the
purchase, lease, or sale of equipment, or (ii) transferred by the Authority to
be used in connection with any other program of the Authority. No funds of the
Authority derived from the equipment program authorized under this section may
be used in connection with the issuance or securing of indebtedness for the
benefit of private institutions of higher education pursuant to Article 2
(&#xA7; 23.1-1220 et seq.).

E. The Authority may (i) determine and charge rent or determine sale prices for
equipment that it leases or sells to eligible institutions and terminate such
lease or sale agreements upon the failure of an eligible institution to comply
with any obligations contained in such agreements or (ii) include in such lease
agreements options for the eligible institution to renew the lease or purchase
any or all of the leased equipment and provisions for the Authority to repossess
and sell equipment leased or sold upon any default under the lease or sale
agreement.

HISTORY: 1986, c. 597, § 23-30.27:1; 2016, c. 588.