§ 10.1-1237. Virginia Brownfields Restoration and Economic RedevelopmentAssistance Fund established; uses.
A. There is hereby created and set apart a special, permanent, perpetual andnonreverting fund to be known as the Virginia Brownfields Restoration andEconomic Redevelopment Assistance Fund for the purposes of promoting therestoration and redevelopment of brownfield sites and to addressenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to new economic development prospects. The Fund shallconsist of sums appropriated to the Fund by the General Assembly, allreceipts by the Fund from loans made by it, all income from the investment ofmoneys held in the Fund, and any other sums designated for deposit to theFund from any source, public or private, including any federal grants, awardsor other forms of financial assistance received by the Commonwealth.
B. The Authority shall administer and manage the Fund and establish theinterest rates and repayment terms of such loans in accordance with amemorandum of agreement with the Partnership. The Partnership shall directthe distribution of loans or grants from the Fund to particular recipientsbased upon guidelines developed for this purpose. With approval from thePartnership, the Authority may disperse monies from the Fund for the paymentof reasonable and necessary costs and expenses incurred in the administrationand management of the Fund. The Authority may establish and collect areasonable fee on outstanding loans for its management services.
C. All money belonging to the Fund shall be deposited in an account oraccounts in banks or trust companies organized under the laws of theCommonwealth or in national banking associations located in Virginia or insavings institutions located in Virginia organized under the laws of theCommonwealth or the United States. The money in these accounts shall be paidby check and signed by the Executive Director of the Authority or otherofficers or employees designated by the Board of Directors of the Authority.All deposits of money shall, if required by the Authority, be secured in amanner determined by the Authority to be prudent, and all banks, trustcompanies and savings institutions are authorized to give security for thedeposits. Money in the Fund shall not be commingled with other money of theAuthority. Money in the Fund not needed for immediate use or disbursement maybe invested or reinvested by the Authority in obligations or securities thatare considered lawful investments for public funds under the laws of theCommonwealth. Expenditures and disbursements from the Fund shall be made bythe Authority upon written request signed by the Chief Executive Officer ofthe Virginia Economic Development Partnership.
D. The Authority is empowered to collect, or to authorize others to collecton its behalf, amounts due to the Fund under any loan including, ifappropriate, taking the action required by § 15.2-2659 to obtain payment ofany amounts in default. Proceedings to recover amounts due to the Fund may beinstituted by the Authority in the name of the Fund in the appropriatecircuit court.
E. The Partnership may approve grants to local governments for the purposesof promoting the restoration and redevelopment of brownfield sites and toaddress real environmental problems or obstacles to reuse so that these sitescan be effectively marketed to new economic development prospects. The grantsmay be used to pay the reasonable and necessary costs associated with therestoration and redevelopment of a brownfield site for (i) environmental andcultural resource site assessments, (ii) remediation of a contaminatedproperty to remove hazardous substances, hazardous wastes, or solid wastes,(iii) the necessary removal of human remains, the appropriate treatment ofgrave sites, and the appropriate and necessary treatment of significantarchaeological resources, or the stabilization or restoration of structureslisted on or eligible for the Virginia Historic Landmarks Register, (iv)demolition and removal of existing structures, or other site work necessaryto make a site or certain real property usable for new economic development,and (v) development of a remediation and reuse plan. The Partnership mayestablish such terms and conditions as it deems appropriate and shallevaluate each grant request in accordance with the guidelines developed forthis purpose. The Authority shall disburse grants from the Fund in accordancewith a written request from the Partnership.
F. The Authority may make loans to local governments, public authorities,corporations and partnerships to finance or refinance the cost of anybrownfield restoration or remediation project for the purposes of promotingthe restoration and redevelopment of brownfield sites and to address realenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to economic development prospects. The loans shall beused to pay the reasonable and necessary costs related to the restoration andredevelopment of a brownfield site for (i) environmental and culturalresource site assessments, (ii) remediation of a contaminated property toremove hazardous substances, hazardous wastes, or solid wastes, (iii) thenecessary removal of human remains, the appropriate treatment of grave sites,and the appropriate and necessary treatment of significant archaeologicalresources, or the stabilization or restoration of structures listed on oreligible for the Virginia Historic Landmarks Register, (iv) demolition andremoval of existing structures, or other site work necessary to make a siteor certain real property usable for new economic development, and (v)development of a remediation and reuse plan.
The Partnership shall designate in writing the recipient of each loan, thepurposes of the loan, and the amount of each such loan. No loan from the Fundshall exceed the total cost of the project to be financed or the outstandingprincipal amount of the indebtedness to be refinanced plus reasonablefinancing expenses.
G. Except as otherwise provided in this chapter, the Authority shalldetermine the interest rate and terms and conditions of any loan from theFund, which may vary between local governments. Each loan shall be evidencedby appropriate bonds or notes of the local government payable to the Fund.The bonds or notes shall have been duly authorized by the local governmentand executed by its authorized legal representatives. The Authority isauthorized to require in connection with any loan from the Fund suchdocuments, instruments, certificates, legal opinions and other information asit may deem necessary or convenient. In addition to any other terms orconditions that the Authority may establish, the Authority may require, as acondition to making any loan from the Fund, that the local governmentreceiving the loan covenant perform any of the following:
1. Establish and collect rents, rates, fees, taxes, and charges to producerevenue sufficient to pay all or a specified portion of (i) the costs of theproject, (ii) any outstanding indebtedness incurred for the purposes of theproject, including the principal of, premium, if any, and interest on theloan from the Fund to the local government, and (iii) any amounts necessaryto create and maintain any required reserve.
2. Levy and collect ad valorem taxes on all property within the jurisdictionof the local government subject to local taxation sufficient to pay theprincipal of and premium, if any, and interest on the loan from the Fund tothe local government.
3. Create and maintain a special fund or funds for the payment of theprincipal of, premium, if any, and interest on the loan from the Fund to thelocal government and any other amounts becoming due under any agreemententered into in connection with the loan, or the project or any portionsthereof or other property of the local government, and deposit into any fundor funds amounts sufficient to make any payments on the loan as they becomedue and payable.
4. Create and maintain other special funds as required by the Authority.
5. Perform other acts otherwise permitted by applicable law to secure paymentof the principal of, premium, if any, and interest on the loan from the Fundto the local government and to provide for the remedies of the Fund in theevent of any default by the local government in the payment of the loan,including, without limitation, any of the following:
a. The conveyance of, or the granting of liens on or security interests in,real and personal property, together with all rights, title and interesttherein, to the Fund;
b. The procurement of insurance, guarantees, letters of credit and otherforms of collateral, security, liquidity arrangements or credit supports forthe loan from any source, public or private, and the payment therefor ofpremiums, fees, or other charges;
c. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, for the purpose of financing,and the pledging of the revenues from such combined projects and undertakingsto secure the loan from the Fund to the local government made in connectionwith such combination or any part or parts thereof;
d. The maintenance, replacement, renewal, and repair of the project; and
e. The procurement of casualty and liability insurance.
6. Obtain a review of the accounting and the internal controls from theAuditor of Public Accounts or his legally authorized representatives. TheAuthority may request additional reviews at any time during the term of theloan.
7. Directly offer, pledge, and consent to the Authority to take actionpursuant to § 62.1-216.1 to obtain payment of any amounts in default.
H. All local governments borrowing money from the Fund are authorized toperform any acts, take any action, adopt any proceedings and make and carryout any contracts that are contemplated by this chapter. Such contracts neednot be identical among all local governments, but may be structured asdetermined by the Authority according to the needs of the contracting localgovernments and the Fund.
I. Subject to the rights, if any, of the registered owners of any of thebonds of the Authority, the Authority may consent to and approve anymodification in the terms of any loan to any local government.
J. The Partnership, through its Chief Executive Officer, shall have theauthority to access and release moneys in the Fund for purposes of thissection as long as the disbursement does not exceed the balance of the Fund.If the Partnership, through its Chief Executive Officer, requests adisbursement in an amount exceeding the current Fund balance, thedisbursement shall require the written approval of the Governor.Disbursements from the Fund may be made for the purposes outlined in thissection, including, but not limited to, personnel, administrative andequipment costs and expenses directly incurred by the Partnership or theAuthority, or by any other agency or political subdivision acting at thedirection of the Partnership.
The Authority is empowered at any time and from time to time to pledge,assign or transfer from the Fund to banks or trust companies designated bythe Authority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
K. The Authority is empowered at any time and from time to time to sell, uponsuch terms and conditions as the Authority shall deem appropriate, any loan,or interest therein, made pursuant to this chapter. The net proceeds of saleremaining after the payment of the costs and expenses of the sale shall bedesignated for deposit to, and become part of, the Fund.
L. The Authority may, with the approval of the Partnership, pledge, assign ortransfer from the Fund to banks or trust companies designated by theAuthority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
M. The Partnership, in consultation with the Department of EnvironmentalQuality, shall develop guidance governing the use of the Fund and includingcriteria for project eligibility that considers the extent to which a grantor loan will facilitate the use or reuse of existing infrastructure, theextent to which a grant or loan will meet the needs of a community that haslimited ability to draw on other funding sources because of the small size orlow income of the community, the potential for redevelopment of the site, theeconomic and environmental benefits to the surrounding community, and theextent of the perceived or real environmental contamination at the site. Theguidelines shall include a requirement for a one-to-one match by therecipient of any grant made by or from the Fund.
§ 10.1-1237. Virginia Brownfields Restoration and Economic RedevelopmentAssistance Fund established; uses.
A. There is hereby created and set apart a special, permanent, perpetual andnonreverting fund to be known as the Virginia Brownfields Restoration andEconomic Redevelopment Assistance Fund for the purposes of promoting therestoration and redevelopment of brownfield sites and to addressenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to new economic development prospects. The Fund shallconsist of sums appropriated to the Fund by the General Assembly, allreceipts by the Fund from loans made by it, all income from the investment ofmoneys held in the Fund, and any other sums designated for deposit to theFund from any source, public or private, including any federal grants, awardsor other forms of financial assistance received by the Commonwealth.
B. The Authority shall administer and manage the Fund and establish theinterest rates and repayment terms of such loans in accordance with amemorandum of agreement with the Partnership. The Partnership shall directthe distribution of loans or grants from the Fund to particular recipientsbased upon guidelines developed for this purpose. With approval from thePartnership, the Authority may disperse monies from the Fund for the paymentof reasonable and necessary costs and expenses incurred in the administrationand management of the Fund. The Authority may establish and collect areasonable fee on outstanding loans for its management services.
C. All money belonging to the Fund shall be deposited in an account oraccounts in banks or trust companies organized under the laws of theCommonwealth or in national banking associations located in Virginia or insavings institutions located in Virginia organized under the laws of theCommonwealth or the United States. The money in these accounts shall be paidby check and signed by the Executive Director of the Authority or otherofficers or employees designated by the Board of Directors of the Authority.All deposits of money shall, if required by the Authority, be secured in amanner determined by the Authority to be prudent, and all banks, trustcompanies and savings institutions are authorized to give security for thedeposits. Money in the Fund shall not be commingled with other money of theAuthority. Money in the Fund not needed for immediate use or disbursement maybe invested or reinvested by the Authority in obligations or securities thatare considered lawful investments for public funds under the laws of theCommonwealth. Expenditures and disbursements from the Fund shall be made bythe Authority upon written request signed by the Chief Executive Officer ofthe Virginia Economic Development Partnership.
D. The Authority is empowered to collect, or to authorize others to collecton its behalf, amounts due to the Fund under any loan including, ifappropriate, taking the action required by § 15.2-2659 to obtain payment ofany amounts in default. Proceedings to recover amounts due to the Fund may beinstituted by the Authority in the name of the Fund in the appropriatecircuit court.
E. The Partnership may approve grants to local governments for the purposesof promoting the restoration and redevelopment of brownfield sites and toaddress real environmental problems or obstacles to reuse so that these sitescan be effectively marketed to new economic development prospects. The grantsmay be used to pay the reasonable and necessary costs associated with therestoration and redevelopment of a brownfield site for (i) environmental andcultural resource site assessments, (ii) remediation of a contaminatedproperty to remove hazardous substances, hazardous wastes, or solid wastes,(iii) the necessary removal of human remains, the appropriate treatment ofgrave sites, and the appropriate and necessary treatment of significantarchaeological resources, or the stabilization or restoration of structureslisted on or eligible for the Virginia Historic Landmarks Register, (iv)demolition and removal of existing structures, or other site work necessaryto make a site or certain real property usable for new economic development,and (v) development of a remediation and reuse plan. The Partnership mayestablish such terms and conditions as it deems appropriate and shallevaluate each grant request in accordance with the guidelines developed forthis purpose. The Authority shall disburse grants from the Fund in accordancewith a written request from the Partnership.
F. The Authority may make loans to local governments, public authorities,corporations and partnerships to finance or refinance the cost of anybrownfield restoration or remediation project for the purposes of promotingthe restoration and redevelopment of brownfield sites and to address realenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to economic development prospects. The loans shall beused to pay the reasonable and necessary costs related to the restoration andredevelopment of a brownfield site for (i) environmental and culturalresource site assessments, (ii) remediation of a contaminated property toremove hazardous substances, hazardous wastes, or solid wastes, (iii) thenecessary removal of human remains, the appropriate treatment of grave sites,and the appropriate and necessary treatment of significant archaeologicalresources, or the stabilization or restoration of structures listed on oreligible for the Virginia Historic Landmarks Register, (iv) demolition andremoval of existing structures, or other site work necessary to make a siteor certain real property usable for new economic development, and (v)development of a remediation and reuse plan.
The Partnership shall designate in writing the recipient of each loan, thepurposes of the loan, and the amount of each such loan. No loan from the Fundshall exceed the total cost of the project to be financed or the outstandingprincipal amount of the indebtedness to be refinanced plus reasonablefinancing expenses.
G. Except as otherwise provided in this chapter, the Authority shalldetermine the interest rate and terms and conditions of any loan from theFund, which may vary between local governments. Each loan shall be evidencedby appropriate bonds or notes of the local government payable to the Fund.The bonds or notes shall have been duly authorized by the local governmentand executed by its authorized legal representatives. The Authority isauthorized to require in connection with any loan from the Fund suchdocuments, instruments, certificates, legal opinions and other information asit may deem necessary or convenient. In addition to any other terms orconditions that the Authority may establish, the Authority may require, as acondition to making any loan from the Fund, that the local governmentreceiving the loan covenant perform any of the following:
1. Establish and collect rents, rates, fees, taxes, and charges to producerevenue sufficient to pay all or a specified portion of (i) the costs of theproject, (ii) any outstanding indebtedness incurred for the purposes of theproject, including the principal of, premium, if any, and interest on theloan from the Fund to the local government, and (iii) any amounts necessaryto create and maintain any required reserve.
2. Levy and collect ad valorem taxes on all property within the jurisdictionof the local government subject to local taxation sufficient to pay theprincipal of and premium, if any, and interest on the loan from the Fund tothe local government.
3. Create and maintain a special fund or funds for the payment of theprincipal of, premium, if any, and interest on the loan from the Fund to thelocal government and any other amounts becoming due under any agreemententered into in connection with the loan, or the project or any portionsthereof or other property of the local government, and deposit into any fundor funds amounts sufficient to make any payments on the loan as they becomedue and payable.
4. Create and maintain other special funds as required by the Authority.
5. Perform other acts otherwise permitted by applicable law to secure paymentof the principal of, premium, if any, and interest on the loan from the Fundto the local government and to provide for the remedies of the Fund in theevent of any default by the local government in the payment of the loan,including, without limitation, any of the following:
a. The conveyance of, or the granting of liens on or security interests in,real and personal property, together with all rights, title and interesttherein, to the Fund;
b. The procurement of insurance, guarantees, letters of credit and otherforms of collateral, security, liquidity arrangements or credit supports forthe loan from any source, public or private, and the payment therefor ofpremiums, fees, or other charges;
c. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, for the purpose of financing,and the pledging of the revenues from such combined projects and undertakingsto secure the loan from the Fund to the local government made in connectionwith such combination or any part or parts thereof;
d. The maintenance, replacement, renewal, and repair of the project; and
e. The procurement of casualty and liability insurance.
6. Obtain a review of the accounting and the internal controls from theAuditor of Public Accounts or his legally authorized representatives. TheAuthority may request additional reviews at any time during the term of theloan.
7. Directly offer, pledge, and consent to the Authority to take actionpursuant to § 62.1-216.1 to obtain payment of any amounts in default.
H. All local governments borrowing money from the Fund are authorized toperform any acts, take any action, adopt any proceedings and make and carryout any contracts that are contemplated by this chapter. Such contracts neednot be identical among all local governments, but may be structured asdetermined by the Authority according to the needs of the contracting localgovernments and the Fund.
I. Subject to the rights, if any, of the registered owners of any of thebonds of the Authority, the Authority may consent to and approve anymodification in the terms of any loan to any local government.
J. The Partnership, through its Chief Executive Officer, shall have theauthority to access and release moneys in the Fund for purposes of thissection as long as the disbursement does not exceed the balance of the Fund.If the Partnership, through its Chief Executive Officer, requests adisbursement in an amount exceeding the current Fund balance, thedisbursement shall require the written approval of the Governor.Disbursements from the Fund may be made for the purposes outlined in thissection, including, but not limited to, personnel, administrative andequipment costs and expenses directly incurred by the Partnership or theAuthority, or by any other agency or political subdivision acting at thedirection of the Partnership.
The Authority is empowered at any time and from time to time to pledge,assign or transfer from the Fund to banks or trust companies designated bythe Authority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
K. The Authority is empowered at any time and from time to time to sell, uponsuch terms and conditions as the Authority shall deem appropriate, any loan,or interest therein, made pursuant to this chapter. The net proceeds of saleremaining after the payment of the costs and expenses of the sale shall bedesignated for deposit to, and become part of, the Fund.
L. The Authority may, with the approval of the Partnership, pledge, assign ortransfer from the Fund to banks or trust companies designated by theAuthority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
M. The Partnership, in consultation with the Department of EnvironmentalQuality, shall develop guidance governing the use of the Fund and includingcriteria for project eligibility that considers the extent to which a grantor loan will facilitate the use or reuse of existing infrastructure, theextent to which a grant or loan will meet the needs of a community that haslimited ability to draw on other funding sources because of the small size orlow income of the community, the potential for redevelopment of the site, theeconomic and environmental benefits to the surrounding community, and theextent of the perceived or real environmental contamination at the site. Theguidelines shall include a requirement for a one-to-one match by therecipient of any grant made by or from the Fund.
§ 10.1-1237. Virginia Brownfields Restoration and Economic RedevelopmentAssistance Fund established; uses.
A. There is hereby created and set apart a special, permanent, perpetual andnonreverting fund to be known as the Virginia Brownfields Restoration andEconomic Redevelopment Assistance Fund for the purposes of promoting therestoration and redevelopment of brownfield sites and to addressenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to new economic development prospects. The Fund shallconsist of sums appropriated to the Fund by the General Assembly, allreceipts by the Fund from loans made by it, all income from the investment ofmoneys held in the Fund, and any other sums designated for deposit to theFund from any source, public or private, including any federal grants, awardsor other forms of financial assistance received by the Commonwealth.
B. The Authority shall administer and manage the Fund and establish theinterest rates and repayment terms of such loans in accordance with amemorandum of agreement with the Partnership. The Partnership shall directthe distribution of loans or grants from the Fund to particular recipientsbased upon guidelines developed for this purpose. With approval from thePartnership, the Authority may disperse monies from the Fund for the paymentof reasonable and necessary costs and expenses incurred in the administrationand management of the Fund. The Authority may establish and collect areasonable fee on outstanding loans for its management services.
C. All money belonging to the Fund shall be deposited in an account oraccounts in banks or trust companies organized under the laws of theCommonwealth or in national banking associations located in Virginia or insavings institutions located in Virginia organized under the laws of theCommonwealth or the United States. The money in these accounts shall be paidby check and signed by the Executive Director of the Authority or otherofficers or employees designated by the Board of Directors of the Authority.All deposits of money shall, if required by the Authority, be secured in amanner determined by the Authority to be prudent, and all banks, trustcompanies and savings institutions are authorized to give security for thedeposits. Money in the Fund shall not be commingled with other money of theAuthority. Money in the Fund not needed for immediate use or disbursement maybe invested or reinvested by the Authority in obligations or securities thatare considered lawful investments for public funds under the laws of theCommonwealth. Expenditures and disbursements from the Fund shall be made bythe Authority upon written request signed by the Chief Executive Officer ofthe Virginia Economic Development Partnership.
D. The Authority is empowered to collect, or to authorize others to collecton its behalf, amounts due to the Fund under any loan including, ifappropriate, taking the action required by § 15.2-2659 to obtain payment ofany amounts in default. Proceedings to recover amounts due to the Fund may beinstituted by the Authority in the name of the Fund in the appropriatecircuit court.
E. The Partnership may approve grants to local governments for the purposesof promoting the restoration and redevelopment of brownfield sites and toaddress real environmental problems or obstacles to reuse so that these sitescan be effectively marketed to new economic development prospects. The grantsmay be used to pay the reasonable and necessary costs associated with therestoration and redevelopment of a brownfield site for (i) environmental andcultural resource site assessments, (ii) remediation of a contaminatedproperty to remove hazardous substances, hazardous wastes, or solid wastes,(iii) the necessary removal of human remains, the appropriate treatment ofgrave sites, and the appropriate and necessary treatment of significantarchaeological resources, or the stabilization or restoration of structureslisted on or eligible for the Virginia Historic Landmarks Register, (iv)demolition and removal of existing structures, or other site work necessaryto make a site or certain real property usable for new economic development,and (v) development of a remediation and reuse plan. The Partnership mayestablish such terms and conditions as it deems appropriate and shallevaluate each grant request in accordance with the guidelines developed forthis purpose. The Authority shall disburse grants from the Fund in accordancewith a written request from the Partnership.
F. The Authority may make loans to local governments, public authorities,corporations and partnerships to finance or refinance the cost of anybrownfield restoration or remediation project for the purposes of promotingthe restoration and redevelopment of brownfield sites and to address realenvironmental problems or obstacles to reuse so that these sites can beeffectively marketed to economic development prospects. The loans shall beused to pay the reasonable and necessary costs related to the restoration andredevelopment of a brownfield site for (i) environmental and culturalresource site assessments, (ii) remediation of a contaminated property toremove hazardous substances, hazardous wastes, or solid wastes, (iii) thenecessary removal of human remains, the appropriate treatment of grave sites,and the appropriate and necessary treatment of significant archaeologicalresources, or the stabilization or restoration of structures listed on oreligible for the Virginia Historic Landmarks Register, (iv) demolition andremoval of existing structures, or other site work necessary to make a siteor certain real property usable for new economic development, and (v)development of a remediation and reuse plan.
The Partnership shall designate in writing the recipient of each loan, thepurposes of the loan, and the amount of each such loan. No loan from the Fundshall exceed the total cost of the project to be financed or the outstandingprincipal amount of the indebtedness to be refinanced plus reasonablefinancing expenses.
G. Except as otherwise provided in this chapter, the Authority shalldetermine the interest rate and terms and conditions of any loan from theFund, which may vary between local governments. Each loan shall be evidencedby appropriate bonds or notes of the local government payable to the Fund.The bonds or notes shall have been duly authorized by the local governmentand executed by its authorized legal representatives. The Authority isauthorized to require in connection with any loan from the Fund suchdocuments, instruments, certificates, legal opinions and other information asit may deem necessary or convenient. In addition to any other terms orconditions that the Authority may establish, the Authority may require, as acondition to making any loan from the Fund, that the local governmentreceiving the loan covenant perform any of the following:
1. Establish and collect rents, rates, fees, taxes, and charges to producerevenue sufficient to pay all or a specified portion of (i) the costs of theproject, (ii) any outstanding indebtedness incurred for the purposes of theproject, including the principal of, premium, if any, and interest on theloan from the Fund to the local government, and (iii) any amounts necessaryto create and maintain any required reserve.
2. Levy and collect ad valorem taxes on all property within the jurisdictionof the local government subject to local taxation sufficient to pay theprincipal of and premium, if any, and interest on the loan from the Fund tothe local government.
3. Create and maintain a special fund or funds for the payment of theprincipal of, premium, if any, and interest on the loan from the Fund to thelocal government and any other amounts becoming due under any agreemententered into in connection with the loan, or the project or any portionsthereof or other property of the local government, and deposit into any fundor funds amounts sufficient to make any payments on the loan as they becomedue and payable.
4. Create and maintain other special funds as required by the Authority.
5. Perform other acts otherwise permitted by applicable law to secure paymentof the principal of, premium, if any, and interest on the loan from the Fundto the local government and to provide for the remedies of the Fund in theevent of any default by the local government in the payment of the loan,including, without limitation, any of the following:
a. The conveyance of, or the granting of liens on or security interests in,real and personal property, together with all rights, title and interesttherein, to the Fund;
b. The procurement of insurance, guarantees, letters of credit and otherforms of collateral, security, liquidity arrangements or credit supports forthe loan from any source, public or private, and the payment therefor ofpremiums, fees, or other charges;
c. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, for the purpose of financing,and the pledging of the revenues from such combined projects and undertakingsto secure the loan from the Fund to the local government made in connectionwith such combination or any part or parts thereof;
d. The maintenance, replacement, renewal, and repair of the project; and
e. The procurement of casualty and liability insurance.
6. Obtain a review of the accounting and the internal controls from theAuditor of Public Accounts or his legally authorized representatives. TheAuthority may request additional reviews at any time during the term of theloan.
7. Directly offer, pledge, and consent to the Authority to take actionpursuant to § 62.1-216.1 to obtain payment of any amounts in default.
H. All local governments borrowing money from the Fund are authorized toperform any acts, take any action, adopt any proceedings and make and carryout any contracts that are contemplated by this chapter. Such contracts neednot be identical among all local governments, but may be structured asdetermined by the Authority according to the needs of the contracting localgovernments and the Fund.
I. Subject to the rights, if any, of the registered owners of any of thebonds of the Authority, the Authority may consent to and approve anymodification in the terms of any loan to any local government.
J. The Partnership, through its Chief Executive Officer, shall have theauthority to access and release moneys in the Fund for purposes of thissection as long as the disbursement does not exceed the balance of the Fund.If the Partnership, through its Chief Executive Officer, requests adisbursement in an amount exceeding the current Fund balance, thedisbursement shall require the written approval of the Governor.Disbursements from the Fund may be made for the purposes outlined in thissection, including, but not limited to, personnel, administrative andequipment costs and expenses directly incurred by the Partnership or theAuthority, or by any other agency or political subdivision acting at thedirection of the Partnership.
The Authority is empowered at any time and from time to time to pledge,assign or transfer from the Fund to banks or trust companies designated bythe Authority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
K. The Authority is empowered at any time and from time to time to sell, uponsuch terms and conditions as the Authority shall deem appropriate, any loan,or interest therein, made pursuant to this chapter. The net proceeds of saleremaining after the payment of the costs and expenses of the sale shall bedesignated for deposit to, and become part of, the Fund.
L. The Authority may, with the approval of the Partnership, pledge, assign ortransfer from the Fund to banks or trust companies designated by theAuthority any or all of the assets of the Fund to be held in trust assecurity for the payment of the principal of, premium, if any, and intereston any or all of the bonds, as defined in § 62.1-199, issued to finance anyproject. The interests of the Fund in any assets so transferred shall besubordinate to the rights of the trustee under the pledge, assignment ortransfer. To the extent funds are not available from other sources pledgedfor such purpose, any of the assets or payments of principal and interestreceived on the assets pledged, assigned or transferred or held in trust maybe applied by the trustee thereof to the payment of the principal of,premium, if any, and interest on such bonds of the Authority secured thereby,and, if such payments are insufficient for such purpose, the trustee isempowered to sell any or all of such assets and apply the net proceeds fromthe sale to the payment of the principal of, premium, if any, and interest onsuch bonds of the Authority. Any assets of the Fund pledged, assigned ortransferred in trust as set forth above and any payments of principal,interest or earnings received thereon shall remain part of the Fund but shallbe subject to the pledge, assignment or transfer to secure the bonds of theAuthority and shall be held by the trustee to which they are pledged,assigned or transferred until no longer required for such purpose by theterms of the pledge, assignment or transfer.
M. The Partnership, in consultation with the Department of EnvironmentalQuality, shall develop guidance governing the use of the Fund and includingcriteria for project eligibility that considers the extent to which a grantor loan will facilitate the use or reuse of existing infrastructure, theextent to which a grant or loan will meet the needs of a community that haslimited ability to draw on other funding sources because of the small size orlow income of the community, the potential for redevelopment of the site, theeconomic and environmental benefits to the surrounding community, and theextent of the perceived or real environmental contamination at the site. Theguidelines shall include a requirement for a one-to-one match by therecipient of any grant made by or from the Fund.
