                                 CODE OF VIRGINIA

RESERVE FUND; LIMITATIONS (§ 23.1-1209)

A. If the Authority deems it proper to create a reserve fund from its bond
proceeds or other funds to support an issuance of bonds in accordance with the
provisions of this section, all moneys held in such reserve fund, except as
otherwise provided in this section, shall be pledged solely for the payment of
the principal of and interest on the bonds secured in whole or in part by such a
fund. The Authority may transfer income or interest earned on, or increment to,
any reserve fund to its other funds or accounts if such transfer does not reduce
the amount of the reserve fund below its minimum requirement.

B. To ensure further the maintenance of reserve funds established in accordance
with the provisions of this section, the chairman of the Authority shall
annually, on or before November 15, make and deliver to the Governor and the
Secretary of Finance a certificate stating the sum, if any, required to restore
each reserve fund to its minimum requirement. The Governor shall submit to the
presiding officer of each house of the General Assembly printed copies of a
budget including the sum, if any, required to restore each reserve fund to its
minimum requirement. Such submission shall be made at the time the Governor
presents his budget and budget bill to the General Assembly pursuant to
&#xA7;&#xA7; 2.2-1508 and 2.2-1509. Any sum that may be appropriated by the
General Assembly for any restoration and paid to the Authority shall be
deposited by the Authority in the applicable reserve fund. All sums paid to the
Authority pursuant to this section shall constitute and be accounted for as
advances by the Commonwealth to the Authority and, subject to the rights of the
holders of any bonds of the Authority, shall be repaid to the Commonwealth
without interest from available revenues of the Authority in excess of the
amounts required for payment of bonds or other obligations of the Authority,
maintenance of reserve funds, and operating expenses.

C. The Authority shall not at any time issue bonds secured in whole or in part
by any reserve fund referred to in subsection A if, upon the issuance of the
bonds, the amount in the reserve fund will be less than its minimum requirement
unless the Authority, at the time of the issuance of the bonds, deposits in the
fund an amount that, together with the amount then in the fund, will not be less
than the fund&#8217;s minimum reserve requirement.

D. The total principal amount of bonds outstanding at any one time, secured by a
reserve fund in accordance with the provisions of this section, shall not exceed
the sum of $300 million without the prior approval of the General Assembly.

E. Nothing in this section shall be construed as limiting the power of the
Authority to issue bonds (i) not secured by a reserve fund or (ii) secured by a
reserve fund not described in this section.

HISTORY: 1996, cc. 672, 689, § 23-30.29:1; 2016, c. 588.