                                 CODE OF VIRGINIA

CONTRACTS AND COVENANTS WITH FEDERAL GOVERNMENT, ETC.; AGREEMENTS TO SELL (§
36-35)

In any contract or amendatory or superseding contract for a loan and annual
contributions heretofore or hereafter entered into between a housing authority
and the federal government with respect to any housing project undertaken by the
housing authority, any such housing authority is authorized to make such
covenants (including covenants with holders of obligations of the authority
issued for purposes of the project involved) and to confer upon the federal
government such rights and remedies, as the housing authority deems necessary to
assure the fulfillment of the purposes for which the project was undertaken. In
any such contract, the housing authority may, notwithstanding any other
provisions of law, agree to sell and convey the project (including all lands
appertaining thereto) to which such contract relates to the federal government
upon the occurrence of such conditions, or upon such defaults on obligations for
which any of the annual contributions provided in such contract are pledged, as
may be prescribed in such contract, and at a price (which may include the
assumption by the federal government of the payment, when due, of the principal
of and interest on outstanding obligations of the housing authority issued for
purposes of the project involved) determined as prescribed therein and upon such
other terms and conditions as are therein provided. Any such housing authority
is hereby authorized to enter into such supplementary contracts, and to execute
such conveyances, as may be necessary to carry out the provisions hereof.
Notwithstanding any other provisions of law, any contracts or supplementary
contracts or conveyances made or executed pursuant to the provisions of this
section shall not be or constitute a mortgage within the meaning or for the
purposes of any of the laws of this Commonwealth.

HISTORY: 1942, p. 326; Michie Code 1942, § 3145(4o).