                                 CODE OF VIRGINIA

AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS (§ 33.2-1920)

A. 1. A transportation district may issue bonds or other interest-bearing
obligations, as provided in this chapter, for any of its purposes and pay the
principal and interest thereon from any of its funds, including any moneys paid
to or otherwise received by the district pursuant to any law enacted or any
contract or agreement or any grant, loan, or contribution authorized by this
chapter. For the purposes of this chapter, bonds include bonds, notes, and other
interest-bearing obligations, including notes issued in anticipation of the sale
and issuance of bonds.

   2. Neither the members of a transportation district nor any person executing
   the bonds shall be liable personally on the bonds by reason of the issuance
   thereof. The bonds and other obligations of a district (and such bonds and
   obligations shall so state on their face) shall not be a debt of the
   Commonwealth or any political subdivision thereof, and only the district shall
   be liable thereon. The bonds shall not constitute an indebtedness within the
   meaning of any debt limitation or restriction except as provided under this
   section.

B. 1. Bonds of a transportation district shall be authorized by resolution, may
be issued in one or more series, shall be dated, shall mature at such times not
exceeding 40 years from their dates, shall bear interest at rates determined by
the commission, and may be made redeemable before maturity, at the option of the
commission at such price or prices and under such terms as the commission fixes
prior to issuing the bonds. The commission shall determine the form of the
bonds, including any interest coupons to be attached and the manner of execution
of the bonds, and shall fix the denominations of the bonds and the places of
payment of principal and interest, which may be at any bank or trust company
within or outside the Commonwealth. If any officer whose signature or facsimile
signature appears on any bonds or coupons ceases to be such officer before
delivery of such bond, such signature or facsimile shall nevertheless be valid
and sufficient for all purposes the same as if he had remained in office until
such delivery. Notwithstanding any other provisions of this article or any
recitals in any bonds issued under the provisions of this article, all such
bonds shall be negotiable instruments under the laws of the Commonwealth. The
bonds may be issued in coupon or registered form or both, as the commission may
determine, and provision may be made for the registration of any coupon bonds as
to principal alone and also as to both principal and interest, and for the
reconversion into coupon bonds of any bonds registered as to both principal and
interest. The transportation district may sell such bonds in such manner, either
at public or private sale, and for such price as it may determine to be for the
best interests of the district. A transportation district is authorized to enter
into indentures or agreements with respect to all such matters, and such
indentures or agreements may contain such other provisions as the commission may
deem reasonable and proper for the security of the bondholders. The resolution
may provide that the bonds shall be payable from and secured by all or any part
of the revenues, moneys, or funds of the district as specified therein. Such
pledge shall be valid and binding from the time the pledge is made, and such
revenues, moneys, and funds so pledged and thereafter received by the district
shall immediately be subject to the lien of such pledge without any physical
delivery thereof or further act. The lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort, contract, or
otherwise against the district, irrespective of whether such parties have notice
thereof. Neither the resolution nor any trust indenture by which a pledge is
created need be filed or recorded except in the records of the district. All
expenses incurred in carrying out the provisions of such indentures or
agreements may be treated as a purpose of the transportation district. A
transportation district may issue refunding bonds for the purpose of redeeming
or retiring any bonds before or at maturity, including the payment of any
premium, accrued interest, and costs or expenses thereof.

   2. Prior to the preparation of definitive bonds a transportation district may,
   under like restrictions, issue interim receipts or temporary bonds, with or
   without coupons, exchangeable for definitive bonds when such bonds have been
   executed and are available for delivery. A transportation district may also
   provide for the replacement of any bonds that have been mutilated, destroyed,
   or lost.

   3. Bonds may be issued pursuant to this article without obtaining the consent
   of any commission, board, bureau, or agency of the Commonwealth or of any
   governmental subdivision, and without any referendum, other proceedings, or
   the happening of other conditions except for those proceedings or conditions
   that are specifically required by this article.

C. Any holder of bonds, notes, certificates, or other evidence of borrowing
issued under this article or of any of the coupons appertaining thereto, and the
trustee under any trust indenture or agreement, except to the extent of the
rights given in this article may be restricted by such trust indenture or
agreement, may, either at law or in equity, by suit, action, injunction,
mandamus, or other proceedings, protect and enforce any and all rights under the
laws of the Commonwealth or granted by this article or under such trust
indenture or agreement or the resolution authorizing the issuance of such bonds,
notes, or certificates, and may enforce and compel the performance of all duties
required by this article or by such trust indenture or agreement or resolution
to be performed by the transportation district or by any officer or agent
thereof.

D. The exercise of the powers granted by this article shall be in all respects
for the benefit of the inhabitants of the Commonwealth, for the promotion of
their safety, health, welfare, convenience, and prosperity, and any facility or
service that a transportation district is authorized to provide will constitute
the performance of an essential governmental function. The bonds of a district
are declared to be issued for an essential public and governmental purpose and
their transfer and the income therefrom, including any profit made on the sale
thereof, shall at all times be free and exempt from taxation by the Commonwealth
and by any governmental subdivision thereof.

E. Bonds issued by a transportation district under this article are securities
in which all public officers and public bodies of the Commonwealth and its
governmental subdivisions and all insurance companies, trust companies, banks,
banking associations, investment companies, executors, administrators, trustees,
and other fiduciaries may properly and legally invest funds, including capital
in their control or belonging to them. Such bonds are securities that may
properly and legally be deposited with and received by any state or local
officer or any agency or governmental subdivision of the Commonwealth for any
purpose for which the deposit of bonds or obligations is now or may hereafter be
authorized by law.

HISTORY: 1968, c. 551, § 15.1-1358.2; 1972, c. 791; 1997, c. 587, § 15.1-4519;
2014, c. 805.