15.2-4519 - Authority to issue bonds and other obligations; terms and conditions of bonds; enforcement; exemption from taxation; legal investments. - Virginia Statutes

§ 15.2-4519. Authority to issue bonds and other obligations; terms andconditions of bonds; enforcement; exemption from taxation; legal investments.

A. 1. A transportation district may issue bonds or other interest-bearingobligations, as provided in this chapter, for any of its purposes and pay theprincipal and interest thereon from any of its funds, including, but notlimited to, any moneys paid to or otherwise received by the district pursuantto any law heretofore or hereafter enacted or any contract or agreement orany grant, loan, or contribution authorized by this chapter. For the purposesof this chapter, bonds include bonds, notes, and other interest-bearingobligations, including notes issued in anticipation of the sale and issuanceof bonds.

2. Neither the members of a transportation district nor any person executingthe bonds shall be liable personally on the bonds by reason of the issuancethereof. The bonds and other obligations of a district (and such bonds andobligations shall so state on their face) shall not be a debt of theCommonwealth or any political subdivision thereof and only the district shallbe liable thereon. The bonds shall not constitute an indebtedness within themeaning of any debt limitation or restriction except as provided under thissection.

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 suchtimes not exceeding forty years from their dates, shall bear interest atrates determined by the commission, and may be made redeemable beforematurity, at the option of the commission at such price or prices and undersuch terms as the commission fixes prior to issuing the bonds. The commissionshall determine the form of the bonds, including any interest coupons to beattached and the manner of execution of the bonds, and shall fix thedenominations of the bonds and the places of payment of principal andinterest, which may be at any bank or trust company within or outside theCommonwealth. If any officer whose signature or facsimile signature appearson any bonds or coupons ceases to be such officer before delivery of suchbond, such signature or facsimile shall nevertheless be valid and sufficientfor all purposes the same as if he had remained in office until suchdelivery. Notwithstanding any other provisions of this article or anyrecitals in any bonds issued under the provisions of this article, all suchbonds shall be negotiable instruments under the laws of the Commonwealth. Thebonds may be issued in coupon or registered form or both, as the commissionmay determine, and provision may be made for the registration of any couponbonds as to principal alone and also as to both principal and interest, andfor the reconversion into coupon bonds of any bonds registered as to bothprincipal and interest. The transportation district may sell such bonds insuch manner, either at public or private sale, and for such price, as it maydetermine to be for the best interests of the district. A transportationdistrict is authorized to enter into indentures or agreements with respect toall such matters and such indentures or agreements may contain such otherprovisions as the commission may deem reasonable and proper for the securityof the bondholders. The resolution may provide that the bonds shall bepayable from and secured by all or any part of the revenues, moneys or fundsof the district as specified therein. Such pledge shall be valid and bindingfrom the time the pledge is made and such revenues, moneys and funds sopledged and thereafter received by the district shall immediately be subjectto the lien of such pledge without any physical delivery thereof or furtheract. The lien of any such pledge shall be valid and binding as against allparties having claims of any kind in tort, contract or otherwise against thedistrict, irrespective of whether such parties have notice thereof. Neitherthe resolution nor any trust indenture by which a pledge is created need befiled or recorded except in the records of the district. All expensesincurred in carrying out the provisions of such indentures or agreements maybe treated as a purpose of the transportation district. A transportationdistrict may issue refunding bonds for the purpose of redeeming or retiringany 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 districtmay, under like restrictions, issue interim receipts or temporary bonds, withor without coupons, exchangeable for definitive bonds when such bonds havebeen executed and are available for delivery. A transportation district mayalso provide for the replacement of any bonds which have been mutilated,destroyed or lost.

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

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

D. The exercise of the powers granted by this article shall be in allrespects for the benefit of the inhabitants of the Commonwealth, for thepromotion of their safety, health, welfare, convenience and prosperity, andany facility or service which a transportation district is authorized toprovide will constitute the performance of an essential governmentalfunction. The bonds of a district are declared to be issued for an essentialpublic and governmental purpose and their transfer and the income therefromincluding any profit made on the sale thereof, shall at all times be free andexempt from taxation by the Commonwealth and by any governmental subdivisionthereof.

E. Bonds issued by a transportation district under this article aresecurities in which all public officers and public bodies of the Commonwealthand its governmental subdivisions, 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 aresecurities which may properly and legally be deposited with and received byany state or local officer or any agency or governmental subdivision of theCommonwealth for any purpose for which the deposit of bonds or obligations isnow or may hereafter be authorized by law.

(1968, c. 551, § 15.1-1358.2; 1972, c. 791; 1997, c. 587.)