22.1-168.1 - Reserve fund; limitations. - Virginia Statutes

§ 22.1-168.1. Reserve fund; limitations.

A. If the Board of Commissioners deems it proper to create a reserve fund orfunds from bond proceeds to support an issuance of bonds in accordance withthe provisions of this section, all moneys held in such reserve fund, exceptas hereinafter provided, shall be pledged solely for the payment of theprincipal and interest on the bonds secured in whole or in part by such afund. Any income or interest earned on, or increment to, any reserve fund maybe transferred by the Board of Commissioners to other funds or accounts ofthe Authority to the extent it does not reduce the amount of the reserve fundbelow its minimum requirement.

B. The Board of Commissioners shall not at any time issue bonds secured inwhole or in part by any reserve fund referred to in subsection C, if upon theissuance of the bonds, the amount in the reserve fund will be less than itsminimum requirement unless the Board of Commissioners, at the time ofissuance of the bonds, deposits in the fund an amount which, together withthe amount then in the fund, will not be less than the fund's minimum reserverequirement.

C. In order to ensure further the maintenance of reserve funds established inaccordance with the provisions of this section, the chairman of the Board ofCommissioners shall annually, on or before December 1, make and deliver tothe Governor and the Secretary of Administration a certificate stating thesum, if any, required to restore each reserve fund to its minimumrequirement. Within five days after the beginning of each session of theGeneral Assembly, the Governor shall submit to the presiding officer of eachhouse of the General Assembly printed copies of a budget including the sum,if any, required to restore each reserve fund to its minimum requirement. Allsums, if any, which may be appropriated by the General Assembly for anyrestoration and paid to the Authority shall be deposited by the Authority inthe applicable reserve fund. All amounts paid to the Board of Commissionersby the Commonwealth pursuant to the provisions of this section shallconstitute and be accounted for as advances by the Commonwealth to theAuthority and, subject to the rights of the holders of any bonds of theAuthority, shall be repaid to the Commonwealth without interest fromavailable revenues of the Authority in excess of the amounts required for thepayment of bonds or other obligations of the Authority, the maintenance ofreserve funds, and operating expenses.

D. Excluding bonds issued prior to July 1, 1991, the total principal amountof bonds outstanding at any one time, issued by the Board of Commissioners inaccordance with the provisions of this section, shall not exceed the sum of$800 million without the prior approval of the General Assembly.

E. Nothing in this section shall be construed as limiting the power of theBoard of Commissioners to issue bonds (i) not secured by a reserve fund or(ii) secured by a reserve fund not described in this section.

(1991, c. 543; 1995, cc. 188, 233.)