2.2-4517 - Contracts on interest rates, currency, cash flow or on other basis. - Virginia Statutes

§ 2.2-4517. Contracts on interest rates, currency, cash flow or on otherbasis.

A. Any state entity may enter into any contract or other arrangement that isdetermined to be necessary or appropriate to place the obligation orinvestment of the state entity, as represented by bonds or investments, inwhole or in part, on the interest rate cash flow or other basis desired bythe state entity. Such contract or other arrangement may include contractsproviding for payments based on levels of, or changes in, interest rates.These contracts or arrangements may be entered into by the state entity inconnection with, or incidental to, entering into, or maintaining any (i)agreement that 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 state entity, after giving due considerationto the creditworthiness of the counterparty or other obligated party,including any rating by a nationally recognized rating agency, and any othercriteria as may be appropriate. The determinations referred to in thissubsection may be made by the Treasury Board, the governing body of the stateentity or any public funds manager with professional investment capabilitiesduly authorized by the Treasury Board or the governing body of any stateentity authorized to issue such obligations to make such determinations.

As used in this section, "state entity" means the Commonwealth and allagencies, authorities, boards and institutions of the Commonwealth.

B. Any money set aside and pledged to secure payments of bonds or any of thecontracts entered into pursuant to this section may be invested in accordancewith this chapter and may be pledged to and used to service any of thecontracts or other arrangements entered into pursuant to this section.

(2002, c. 407.)