                                 CODE OF VIRGINIA

ESTABLISHMENT OF CAPITAL RESERVE FUNDS (§ 62.1-215)

A. 1. The Authority may create and establish one or more capital reserve funds
and may pay into each capital reserve fund (i) any moneys appropriated and made
available by the Commonwealth for the purpose of such a fund, (ii) any proceeds
of the sale of bonds of the Authority, to the extent provided in the resolution
authorizing the issuance of, or the trust indenture securing, the bonds, and
(iii) any other moneys which may be made available to the Authority for the
purpose of such a fund from any other source. All moneys held in any capital
reserve fund, except as hereinafter provided, shall be used solely for the
payment when due of the principal of and premium, if any, and interest on the
bonds or obligations under credit enhancements issued by the Authority secured
in whole or in part by such a fund. If, however, moneys in any such fund are
ever less than the minimum capital reserve fund requirement established for the
fund, the Authority shall not use the moneys for any optional purchase or
redemption of bonds. Any income or interest earned on, or increment to, any
capital reserve fund due to its investment may be transferred by the Authority
to other funds or accounts of the Authority to the extent it does not reduce the
amount of the capital reserve fund below its minimal requirement.

   2. The Authority shall not at any time issue bonds or credit enhancements
   secured in whole or in part by any capital reserve fund, if upon the issuance
   of the bonds or credit enhancements, the amount in the capital reserve fund
   will be less than its minimal requirement unless the Authority, at the time of
   issuance of the bonds or credit enhancements, deposits in the fund an amount
   which, together with the amount then in the fund, will not be less than the
   fund&#8217;s minimal capital reserve requirement.

B. In order to assure further the maintenance of capital reserve funds, the
chairman of the Authority shall annually, on or before December 1, make and
deliver to the Governor and the Secretary of Administration a certificate
stating the sum, if any, required to restore each capital reserve fund to its
minimal requirement. Within five days after the beginning of each session of the
General Assembly, the Governor shall submit to the presiding officer of each
House of the General Assembly printed copies of a budget including the sum, if
any, required to restore each capital reserve fund to its minimal requirement.
All sums, if any, which may be appropriated by the General Assembly for any
restoration and paid to the Authority shall be deposited by the Authority in the
applicable capital reserve fund. All amounts paid to the Authority by the
Commonwealth pursuant to the provisions of this section shall constitute and be
accounted for as advances by the Commonwealth to the Authority and, subject to
the rights of the holders of any bonds of the Authority or the beneficiaries of
credit enhancements of the Authority, shall be repaid to the Commonwealth
without interest from available operating revenues of the Authority in excess of
amounts required for the payment of bonds, credit enhancements or other
obligations of the Authority, the maintenance of capital reserve funds, and
operating expenses. In addition, no bonds issued by the Authority to finance a
professional sports facility shall be secured by a capital reserve fund.

C. The Authority may create and establish other funds as necessary or desirable
for its corporate purposes.

D. Nothing in this section shall be construed as limiting the power of the
Authority to issue bonds or credit enhancements not secured by a capital reserve
fund.

HISTORY: 1984, c. 699; 1998, c. 399; 2000, c. 790.