                                 CODE OF VIRGINIA

CREATION OF THE VIRGINIA TRANSPORTATION INFRASTRUCTURE BANK (§ 33.2-1502)

A. There is hereby created in the state treasury a special nonreverting,
revolving loan fund, known as the Virginia Transportation Infrastructure Bank,
that is a subfund of the Transportation Trust Fund established pursuant to
&#xA7; 33.2-1524.1. The Bank shall be established on the books of the
Comptroller. The Bank shall be capitalized with (i) funds pursuant to
subdivision B 3 of &#xA7; 33.2-1524 and (ii) moneys appropriated by the General
Assembly and credited to the Bank. Disbursements from the Bank shall be made by
the State Treasurer on warrants issued by the Comptroller upon written request
signed by the Commissioner of Highways or his designee. Payments on project
obligations and interest earned on the moneys in the Bank shall be credited to
the Bank. Any moneys remaining in the Bank, including interest thereon, at the
end of each fiscal year shall not revert to the general fund but shall remain in
the Bank. Notwithstanding anything to the contrary set forth in this article or
in the management agreement, the Board will have the right to determine the
projects for which loans or other financial assistance may be provided by the
Bank. Moneys in the Bank shall be used solely for the purposes enumerated in
subsection C.

B. The Board, the manager, and the Secretary of Finance are authorized to enter
into a management agreement which may include provisions (i) setting forth the
terms and conditions under which the manager will advise the Board on the
financial propriety of providing particular loans or other financial assistance;
(ii) setting forth the terms and conditions under which the substantive
requirements of subsections C, D, and E and &#xA7; 33.2-1505 will be applied and
administered; and (iii) authorizing the manager to request the Board to disburse
from the moneys in the Bank the reasonable costs and expenses the manager may
incur in the management and administration of the Bank and a reasonable fee to
be approved by the Board for the manager&#8217;s management and administrative
services.

C. 1. Moneys deposited in the Bank shall be used for the purpose of making loans
and other financial assistance to finance projects.

   2. Each project obligation shall be payable, in whole or in part, from
   reliable repayment sources pledged for such purpose.

   3. The interest rate on a project obligation shall be determined by reference
   to the current market rates for comparable obligations, the nature of the
   project and the financing structure therefor, and the creditworthiness of the
   eligible borrower and other project sponsors.

   4. The repayment schedule for each project obligation shall require (i) the
   amortization of principal beginning within five years following the later of
   substantial project completion or the date of incurrence of the project
   obligation and (ii) a final maturity date of not more than 35 years following
   substantial project completion.

D. The pledge of reliable repayment sources and other property securing any
project obligation may be subordinate to the pledge securing any other senior
debt obligations incurred to finance the project.

E. Notwithstanding subdivision C 4, the manager may at any time following
substantial project completion defer payments on a project obligation if the
project is unable to generate sufficient revenues to pay the scheduled payments.

F. No loan or other financial assistance may be provided or committed to be
provided by the Bank in a manner that would cause such loan or other financial
assistance to be tax-supported debt within the meaning of &#xA7; 2.2-2713 or be
deemed to constitute a debt of the Commonwealth or a pledge of the full faith
and credit of the Commonwealth but shall be payable solely from legally
available moneys held by the Bank.

G. Neither the Bank nor the manager is authorized or empowered to be or to
constitute (i) a bank or trust company within the jurisdiction or under the
control of the Commonwealth or an agency thereof or the Comptroller of Currency
of the U.S. Treasury Department or (ii) a bank, banker, or dealer in securities
within the meaning of, or subject to the provisions of, any securities,
securities exchange, or securities dealers law of the United States or of the
Commonwealth.

H. The Board or the manager may establish or direct the establishment of federal
and state accounts or subaccounts as may be necessary to meet any applicable
federal law requirements or desirable for the efficient administration of the
Bank in accordance with this article.

HISTORY: 2011, cc. 830, 868, § 33.1-23.8; 2014, c. 805; 2015, c. 684; 2020, cc.
1230, 1275.