15.2-5127 - Proceeds of bonds. - Virginia Statutes

§ 15.2-5127. Proceeds of bonds.

The proceeds of bonds issued pursuant to § 15.2-5125 shall be used solely forthe payment of the cost of the system or systems for which they were issuedand shall be disbursed in such manner and under such restrictions, if any, asthe authority may provide in the authorizing resolution or in any trustagreement. If the proceeds of the bonds, by error of estimates or otherwise,are less than such cost, additional bonds may in like manner be issued toprovide the amount of such deficit and, unless otherwise provided in theauthorizing resolution or in the trust agreement securing them, shall bedeemed to be of the same issue and entitled to payment from the same fundwithout preference or priority of the bonds first issued for the samepurpose. If the proceeds of the bonds of any issue exceed the amount requiredfor the purpose for which such bonds were issued, the surplus shall bedeposited to the credit of the sinking fund for such bonds.

(Code 1950, § 15-764.15; 1950, p. 1322; 1962, c. 623, § 15.1-1253; 1997, c.587.)