23-30.47 - Issuance of revenue bonds. - Virginia Statutes

§ 23-30.47. Issuance of revenue bonds.

(a) The Authority may from time to time issue revenue bonds for any corporatepurpose and all such revenue bonds, notes, bond anticipation notes or otherobligations of the Authority issued pursuant to this chapter shall be and arehereby declared to be negotiable for all purposes notwithstanding theirpayment from a limited source and without regard to any other law or laws. Inanticipation of the sale of such revenue bonds, the Authority may issuenegotiable bond anticipation notes and may renew the same from time to time,but the maximum maturity of any such note, including renewals thereof, shallnot exceed five years from the date of issue of the original note. Such notesshall be paid from any revenues of the Authority available therefor and nototherwise pledged, or from the proceeds of sale of the revenue bonds of theAuthority in anticipation of which they were issued. The notes shall beissued in the same manner as the revenue bonds. Such notes and the resolutionor resolutions authorizing the same may contain any provisions, conditions orlimitations which a bond resolution of the Authority may contain.

(b) The revenue bonds and notes of every issue shall be payable solely out ofrevenues to the Authority, subject only to any agreements with the holders ofparticular revenue bonds or notes pledging any particular revenues andsubject to any agreements with any participating institution for highereducation. Notwithstanding that revenue bonds and notes may be payable from aspecial fund, they shall be and be deemed to be, for all purposes, negotiableinstruments, subject only to the provisions of the revenue bonds and notesfor registration.

(c) The revenue bonds may be issued as serial bonds or as term bonds, or theAuthority, in its discretion, may issue bonds of both types. The revenuebonds shall be authorized by resolution of the members of the Authority andshall bear such date or dates, mature at such time or times, not exceedingfifty years from their respective dates, bear interest at such rate or rates,payable at such time or times, be in such denominations, be in such form,either coupon or registered, carry such registration privileges, be executedin such manner, be payable in lawful money of the United States of America atsuch place or places, and be subject to such terms of redemption, as suchresolution or resolutions may provide. The revenue bonds or notes may be soldat public or private sale for such price or prices as the Authority shalldetermine. Pending preparation of the definitive bonds, the Authority mayissue interim receipts or certificates which shall be exchanged for suchdefinitive bonds.

(d) Any resolution or resolutions authorizing any revenue bonds or any issueof revenue bonds may contain provisions, which shall be a part of thecontract with the holders of the revenue bonds to be authorized, as to:

(1) Pledging all or any part of the revenues of a project or projects, anyrevenue producing contract or contracts made by the Authority with anyindividual, partnership, corporation or association or other body, public orprivate, to secure the payment of the revenue bonds or of any particularissue of revenue bonds, subject to such agreements with bondholders as maythen exist; (2) the rentals, fees and other charges to be charged, and theamounts to be raised in each year thereby, and the use and disposition of therevenues; (3) the establishment and setting aside of reserves or sinkingfunds, and the regulation and disposition thereof; (4) limitations on theright of the Authority or its agent to restrict and regulate the use of theproject; (5) limitations on the purpose to which the proceeds of sale of anyissue of revenue bonds then or thereafter to be issued may be applied andpledging such proceeds to secure the payment of the revenue bonds or anyissue of the revenue bonds; (6) limitations on the issuance of additionalbonds, the terms upon which additional bonds may be issued and secured andthe refunding of outstanding bonds; (7) the procedure, if any, by which theterms of any contract with bondholders may be amended or abrogated, theamount of bonds the holders of which must consent thereto, and the manner inwhich such consent may be given; (8) limitations on the amount of moneysderived from the project to be expended for operating, administrative orother expenses of the Authority; (9) defining the acts or omissions to actwhich shall constitute a default in the duties of the Authority to holders ofits obligations and providing the rights and remedies of such holders in theevent of a default; (10) the duties, obligations and liabilities of anytrustee or paying agent; and (11) the mortgaging of a project and the sitethereof for the purpose of securing the bondholders.

(e) Neither the members of the Authority nor any person executing the revenuebonds or notes shall be liable personally on the revenue bonds or notes or besubject to any personal liability or accountability by reason of the issuancethereof.

(f) The Authority shall have power out of any funds available therefor topurchase its bonds or notes. The Authority may hold, pledge, cancel or resellsuch bonds or notes subject to and in accordance with agreements withbondholders.

(1972, c. 686.)