36-55.44:1 - Swap agreements by HDA authorized - Virginia Statutes

§ 36-55.44:1. Swap agreements by HDA authorized.

In connection with, or incidental to, the issuance or carrying of notes orbonds or the acquisition or carrying of any investments, HDA may enter intoswap agreements or other contracts or arrangements which HDA determines to benecessary or appropriate to place obligations or investments of HDA, asrepresented by notes, bonds or investments of HDA, in whole or in part, onthe interest rate, currency, cash flow or other basis desired by HDA or tohedge payment, currency, rate, spread, or other exposure. Such contracts orarrangements may be entered into by HDA in connection with, or incidental to,entering into or maintaining (i) any agreement which secures notes or bondsof HDA and is authorized or permitted by law or (ii) any investment, orcontract providing for any investment, otherwise authorized or permitted bylaw.

Such contracts and arrangements may contain such payment, security, default,remedy, and other terms and conditions as determined by HDA, after giving dueconsideration to the creditworthiness of the counterparty or other obligatedparty, including any rating by any nationally recognized rating agency, andany other criteria as may be appropriate.

In connection with, or incidental to, any of these contracts or arrangements,HDA may enter into credit enhancement or liquidity agreements with such termsand conditions as HDA shall determine.

(1994, c. 84.)