22.1-167.2 - Security for payment; appropriations. - Virginia Statutes

§ 22.1-167.2. Security for payment; appropriations.

A. The Authority is authorized to issue bonds to finance and refinanceacquisition of bonds, notes and other obligations of counties, cities andtowns (local school bonds) issued for the purpose of financing andrefinancing capital projects for school purposes and to pledge to the bondsall or any combination of the following sources: (i) payments of principaland interest on the local school bonds purchased by the Authority; (ii)payments to the localities by the Commonwealth as contemplated under theprovisions of § 15.2-2659 (state aid intercept) of the Code of Virginia;(iii) funds in the Literary Fund available and appropriated for such purpose;and (iv) any funds in the general fund of the Commonwealth appropriated forsuch purpose.

B. The Governor's Budget Bill presented each year to the General Assemblyshall include an appropriation to the Authority of a sum sufficient first,from funds in the Literary Fund available for such purpose, and second, fromthe general fund of the Commonwealth, to cure any shortfall in pledgedprimary revenues on any debt service payment date on the bonds of theAuthority described by this section. A shortfall in pledged primary revenuesshall exist when the sum of the payments made on local school bonds due on orbefore such date and any proceeds derived from the implementation of §15.2-2659 (state aid intercept) of the Code of Virginia as of such date isless than required to pay the debt service due on the Authority's bonds onsuch date.

C. The Literary Fund and the general fund of the Commonwealth shall besubrogated to the rights of the Authority to the extent of any such fundspaid to the Authority and shall be entitled to enforce the Authority'sremedies with respect to the local school bonds and to full recovery of theamount of such shortfall.

D. On or before September 30 of each year, the Authority shall submit to theGovernor and the chairmen of the House Appropriations Committee and theSenate Finance Committee a report as of the end of the prior fiscal yeardetailing the total amount of the Authority's outstanding bonds secured byappropriations as described in subsection B. The report shall also describeany instances where any such appropriation has been used.

(1998, cc. 4, 900.)