                                 CODE OF VIRGINIA

DEFAULT ON PAYMENTS (§ 23.1-1211)

A. Whenever it appears to the Governor from an affidavit filed with him by the
paying agent for the bonds issued by the Authority that an eligible institution
has defaulted on the payment of the principal of or premium, if any, or interest
on its bonds pursuant to this article, the Governor shall immediately make a
summary investigation into the facts set forth in the affidavit. If it is
established to the satisfaction of the Governor that the eligible institution is
in default in the payment of the principal of or premium, if any, or interest on
its bonds, the Governor immediately shall make an order directing the State
Comptroller to make payment immediately to the owners or paying agent of the
bonds in default on behalf of the eligible institution from any appropriation
available to the eligible institution in the amount due and remaining unpaid by
the eligible institution on its bonds.

B. Any payment so made by the State Comptroller to the owners or paying agent of
the bonds in default shall be credited as if made directly by the eligible
institution and charged by the State Comptroller against the appropriations of
the eligible institution. The owners or paying agent of the bonds in default at
the time of payment shall deliver to the State Comptroller, in a form
satisfactory to the State Comptroller, a receipt for payment of the principal,
premium, or interest satisfied by the payment. The State Comptroller shall
report each payment made to the governing board of the defaulting eligible
institution under the provisions of this section.

C. The Governor shall direct the State Comptroller to (i) charge against the
appropriations available to any eligible institution that has defaulted on its
bonds pursuant to this section all future payments of principal of and interest
on the eligible institution&#8217;s bonds when due and payable and (ii) make
such payments to the owners or paying agent of the bonds on behalf of the
eligible institution to ensure that no future default will occur on such bonds.
The charge and payment shall be made upon receipt of documentation that the
State Comptroller deems to be satisfactory evidence of the claim. The owners or
paying agent of the bonds at the time of each payment shall deliver to the State
Comptroller, in a form satisfactory to the State Comptroller, a receipt for
payment of the principal or interest satisfied by the payment.

D. Nothing in this section shall be construed to create any obligation on the
part of the State Comptroller or the Commonwealth to make any payment on behalf
of the defaulting eligible institution other than from funds appropriated to the
defaulting eligible institution.

HISTORY: 1996, cc. 672, 689, § 23-30.29:3; 2016, c. 588; 2017, c. 314.