15.2-5135 - Contracts concerning interest rates, currency, cash flow and other basis. - Virginia Statutes

§ 15.2-5135. Contracts concerning interest rates, currency, cash flow andother basis.

A. Any authority may enter into any contract which the authority determinesto be necessary or appropriate to place the obligation or investment of theauthority, as represented by the bonds or the investment of their proceeds,in whole or in part, on the interest rate, cash flow or other basis desiredby the authority. Such contracts may include without limitation contractscommonly known as interest rate swap agreements and futures or contractsproviding for payments based on levels of, or changes in, interest rates.Such contracts or arrangements may be entered into by the authority inconnection with, or incidental to, entering into or maintaining any (i)agreement which secures bonds or (ii) investment, or contract providing forinvestment, otherwise authorized by law. These contracts and arrangements maycontain such payment, security, default, remedy, and other terms andconditions as determined by the authority, after giving due consideration tothe creditworthiness of the counterparty or other obligated party, includingany rating by any nationally recognized rating agency.

B. Any money set aside and pledged to secure payments of bonds or anycontracts entered into pursuant to this section, may be invested inaccordance with Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 and may bepledged to and used to service any of the contracts or agreements enteredinto pursuant to this section, and any other criteria as may be appropriate.

(1997, c. 587.)