State Codes and Statutes
Statutes > Virginia > Title-15-2 > Chapter-51 > 15-2-5131§ 15.2-5131. Bonds not debts of Commonwealth or participating politicalsubdivision.
A. Revenue bonds issued under the provisions of this chapter shall notconstitute a pledge of the faith and credit of the Commonwealth or of anypolitical subdivision. All bonds shall contain a statement on their facesubstantially to the effect that neither the faith and credit of theCommonwealth nor the faith and credit of any political subdivision arepledged to the payment of the principal of or the interest on the bonds. Theissuance of revenue bonds under the provisions of this chapter shall notdirectly or indirectly or contingently obligate the Commonwealth or anypolitical subdivision to levy any taxes or to make any appropriation fortheir payment except from the funds pledged under the provisions of thischapter.
B. Unless otherwise provided in the ordinance which forms the authority or ina subsequent ordinance or resolution authorizing additional improvements,neither the Commonwealth nor any locality shall pay any part of the principalor interest of any bonds issued by a community development authority formedpursuant to §§ 15.2-5152 through 15.2-5157, nor shall any locality carry anypart of such bonds on its financial statements as a contingent obligation;except that if a community development authority fails to pay such bonds, tothe extent that a locality has imposed a real property tax surcharge or aspecial assessment at the request of a community development authoritypursuant to subdivisions A 3 or A 5 of § 15.2-5158, funds collected from suchsources may be paid against such debt.
C. Debt issued by a community development authority formed pursuant to §§15.2-5152 through 15.2-5157 shall not be considered in determining the debtlimit of any locality.
(Code 1950, § 15-764.19; 1950, p. 1323; 1962, c. 623, § 15.1-1257; 1997, cc.363, 587.)
