10.1-647 - Disposition of facilities financed under article when part of debt remains outstanding. - Virginia Statutes

§ 10.1-647. Disposition of facilities financed under article when part ofdebt remains outstanding.

No facility financed from the revolving fund under the provisions of thisarticle, in whole or in part, shall be sold by an entity when any portion ofthe debt owed to the revolving fund remains unpaid. However, if the purchaseris an entity having the taxing power, then such sale may be made even thoughall or a portion of the debt to the revolving fund remains unpaid, if thepurchasing entity agrees to assume the obligation to repay the outstandingdebt and all interest thereon. If such sale is approved by the Board, thenthe purchasing entity shall be solely liable for the obligations undertakenby the principal debtor, and the principal debtor shall be released therefrom.

(1970, c. 591, § 21-11.12; 1988, c. 891.)