                                 CODE OF VIRGINIA

POWERS; BONDS OF AUTHORITY GENERALLY (§ 23.1-1207)

A. To provide funds for the purchase of bonds of eligible institutions as
authorized by &#xA7; 23.1-1205, the acquisition of equipment as authorized by
&#xA7; 23.1-1206, the reimbursement of the Central Capital Planning Fund
established pursuant to &#xA7; 2.2-1520, the payment of pre-planning or detailed
planning expenses for all projects that have been approved for construction by
the General Assembly, or the payment of all or any part of the cost of any
project or any portion of a project, the Authority may provide by resolution for
the issuance of bonds of the Authority in such amount as the Authority
determines. Such bonds of the Authority are payable solely from funds of the
Authority, including (i) payments of principal of and interest on bonds of
eligible institutions purchased by the Authority; (ii) the proceeds of the sale
of any such bonds; (iii) payments of principal of and interest on obligations
transferred to the Authority by the General Assembly or from other assets or
moneys transferred to the Authority by the General Assembly or eligible
institutions, including lease payments or any other source of revenue; (iv) the
proceeds of the sale of any such obligations or assets; (v) the proceeds from
the sale of bonds of the Authority; (vi) payments made by eligible institutions
under leases or sales of equipment by the Authority; (vii) funds realized from
the enforcement of security interests or other liens securing such bonds; (viii)
payments due under letters of credit, policies of bond insurance, bond purchase
agreements, or other credit enhancements securing payment of principal of and
interest on bonds of the Authority; (ix) any moneys held in funds established by
the Authority pursuant to &#xA7; 23.1-1206; (x) any reserve or sinking fund
created to secure such payment; and (xi) other available funds of the Authority.

B. Bonds of the Authority issued under the provisions of this article do not
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 their face a
statement to the effect that neither the faith and credit nor the taxing power
of the Commonwealth or of any political subdivision of the Commonwealth shall be
pledged to pay the principal of or the interest on such bonds.

C. The bonds of each issue shall be dated and mature at such time as may be
determined by the Authority but not to exceed 40 years from their date, and may
be made redeemable before maturity, at the option of the Authority, at such
price or prices and under such terms and conditions as may be fixed by the
Authority prior to the issuance of the bonds. The bonds may bear interest
payable at such time, at such rate or rates, and in such manner as may be
determined by the Authority, including the determination by agents designated by
the Authority under guidelines established by it. The principal of and interest
on such bonds may be made payable in any lawful medium. The Authority shall
determine the form, manner of execution, denomination, and place of payment of
principal and interest for the bonds, which may be at the office of the State
Treasurer or at any bank or trust company within or outside the Commonwealth.

D. If any officer whose signature or a facsimile of whose signature appears on
any bonds or coupons ceases 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.

E. All revenue bonds issued under the provisions of this article, other than
bonds registered as to principal or in registered form, are negotiable
instruments. Revenue bonds shall be in such form and bear interest at such rate
or rates, either fixed rates or rates established by formula or other method,
and may contain such other provisions as the Authority may determine. The
principal of and premium, if any, and interest on revenue bonds are payable in
United States currency. The Authority shall fix the denomination of revenue
bonds and place of payment of principal, premium, if any, and interest at any
bank or trust company within or outside the Commonwealth.

F. Bonds may be issued under a system of book entry for recording the ownership
and transfer of ownership of rights to receive payments of principal of and
premium, if any, and interest on the bonds.

G. The Authority may sell bonds issued under the provisions of this article in
such manner, either at public or private sale, and for such price as it
determines to be in its best interest. The proceeds of such bonds shall be
disbursed for the purposes for which such bonds are issued and under such
restrictions, if any, as the resolution authorizing the issuance of such bonds
or the trust indenture may provide.

H. Prior to the preparation of definitive bonds, the Authority may under like
restrictions issue temporary bonds, with or without coupons, exchangeable for
definitive bonds when such bonds have been executed and are available for
delivery. The Authority may also provide for the replacement of any bond that
becomes mutilated or is destroyed or lost. Such revenue bonds may be issued
without any other proceedings or the happening of any other conditions or things
than the proceedings, conditions, and things that are specified and required by
this article.

I. Neither the members of the Authority nor any person executing any bonds
issued under the provisions of this article is liable personally on such bonds
or is subject to any personal liability or accountability by reason of the
issuance of such bonds.

J. The Authority shall not undertake a project for an eligible institution if
such project was not approved by the General Assembly pursuant to a bill, and
any such project to be financed by bonds issued by the Authority secured by a
pledge of any revenue source cited in subdivision C 1 a, b, c, or d of &#xA7;
23.1-1106 shall be designated by the eligible institution&#8217;s governing
board as a project to be undertaken by the Authority.

HISTORY: 1964, c. 607, § 23-30.28; 1966, c. 685; 1986, c. 597; 1994, cc. 191,
219; 1996, cc. 672, 689; 2000, cc. 414, 445; 2004, c. 711; 2008, Sp. Sess. I,
cc. 1, 2; 2016, c. 588.