                                 CODE OF VIRGINIA

INVESTIGATION BY GOVERNOR OF NONPAYMENTS; WITHHOLDING STATE FUNDS FROM NONPAYING
LOCALITY; PAYMENT OF FUNDS WITHHELD; RECEIPTS, REPORTS, ETC (§ 62.1-216.1)

Whenever it appears to the Governor from an affidavit filed with him by the
Authority as the purchaser, holder, or credit enhancer of local obligations
(regardless of the security therefor) issued by any county, city or town that a
payment has not been made on any local obligations, the Governor shall
immediately make a summary investigation into the facts set forth in the
affidavit. The Authority may, but shall not be required to, file such an
affidavit unless the Authority has otherwise contracted to make such filing for
the benefit of the holders of any of its bonds or the local obligations credit
enhanced by it. The affidavit described in this section may be filed by a
trustee to which the Authority has assigned the local obligations or the payment
thereon as security for bonds of the Authority under a resolution or trust
indenture or otherwise.
		If it is established to the satisfaction of the Governor that such nonpayment
has occurred, the Governor shall immediately make an order directing the
Comptroller to withhold all further payment to the county, city or town of all
funds, or of any part of them, appropriated and payable by the Commonwealth to
the county, city or town for any and all purposes, until the unpaid sum is
obtained. The Governor shall, while the nonpayment continues, direct in writing
the payment of all sums withheld by the Comptroller, or as much of them as is
necessary, to the Authority, so as to cure, or cure insofar as possible,
nonpayment on the local obligations.
		The Governor shall, as soon as practicable, give notice of the nonpayment and
of the availability of funds with the Comptroller in writing to the Authority.
Any payment so made by the Comptroller to the Authority shall be credited as if
made directly by the county, city or town and shall be charged by the
Comptroller against the first appropriations otherwise payable to the county,
city or town as if paid to the county, city or town. The Authority, at the time
of payment or at the time of each payment shall receipt for the payment and
deliver to the Comptroller all local obligations or other instruments or
documents, in a form satisfactory to the Comptroller, evidencing the
Authority&#8217;s right to receive the amounts satisfied by the payment. The
Comptroller shall report each payment made to the governing body of the
nonpaying county, city or town and deliver or send by registered mail to the
governing body all local obligations, or other instruments or documents received
by the Comptroller under the provisions of this section.
		Nothing in this section shall be construed to create any obligation on the
part of the Comptroller or the Commonwealth to make any payment on behalf of the
nonpaying county, city or town other than from funds appropriated and payable to
the nonpaying county, city or town.

HISTORY: 1998, c. 399; 2003, c. 561; 2011, c. 616.