                                 CODE OF VIRGINIA

PROJECT OBLIGATIONS (§ 33.2-1505)

A. Subject to the terms determined by the manager in accordance with the
management agreement, each loan or other financial assistance shall be evidenced
or guaranteed by project obligations provided to finance the costs of any
project. The manager may also sell any project obligations so acquired and apply
the proceeds of such a sale to the making of additional loans and the provision
of other financial assistance for financing the cost of any project or for any
other corporate purpose of the Bank.

B. The manager may require, as a condition to provision of a loan or other
financial assistance and the acquisition of any project obligations, that the
eligible borrower or any other project sponsor covenant to perform any of the
following:

   1. Establish and collect tolls, rents, rates, fees, and other charges to
   produce revenue sufficient to pay all or a specified portion of (i) the costs
   of operation, maintenance, replacement, renewal, and repairs of the project;
   (ii) any outstanding indebtedness incurred for the purposes of the project,
   including the principal of and premium, if any, and interest on the project
   obligations; and (iii) any amounts necessary to create and maintain any
   required reserve, including any rate stabilization fund deemed necessary or
   appropriate by the manager to offset the need, in whole or part, for future
   increases in tolls, rents, rates, fees, or charges;

   2. Create and maintain a special fund or funds as security for or the source
   of the scheduled payments on the project obligations or for the operation,
   maintenance, repair, or replacement of the project or any portions thereof or
   other property of the eligible borrower or any other project sponsor and
   deposit into any fund or funds amounts sufficient to make any payments as they
   become due and payable;

   3. Create and maintain other special funds as required by the manager; and

   4. Perform other acts, including the conveyance or mortgaging of real and
   personal property together with all right, title, and interest therein to
   secure project obligations, or take other actions as may be deemed necessary
   or desirable by the manager to secure payment of the project obligations and
   to provide for remedies in the event of any default or nonpayment by the
   eligible borrower or any other project sponsor, including any of the
   following:
   				a. The procurement of credit enhancements or liquidity arrangements for
   project obligations from any source, public or private, and the payment
   therefor of premiums, fees, or other charges.
   				b. The combination of one or more projects, or the combination of one or
   more projects with one or more other undertakings, facilities, or systems, for
   the purpose of operations and financing, and the pledging of the revenues from
   such combined projects, undertakings, facilities, and systems to secure
   project obligations issued in connection with such combination or any part or
   parts thereof.
   				c. The payment of such fees and charges in connection with the acquisition
   of the project obligations as may be determined by the manager.

C. All eligible borrowers and other project sponsors, including any governmental
entities, providing project obligations to the Bank are authorized to perform
any acts, take any action, adopt any proceedings, and make and carry out any
contracts with the Bank, the manager, or the Board that are contemplated by this
article. Such contracts need not be identical among all eligible borrowers or
other project sponsors, but may be structured as determined by the manager
according to the needs of the contracting eligible borrowers and other project
sponsors and the purposes of the Bank.
			In addition, subject to the approval of the manager, any project sponsor is
authorized to establish and contract with a special purpose or limited purpose
instrumentality, corporation, or other entity for the purpose of having such
entity serve as the eligible borrower with respect to a particular project.

HISTORY: 2011, cc. 830, 868, § 33.1-23.11; 2014, c. 805; 2015, c. 684.