§ 15.2-6409. Bond issues; contesting validity of bonds.
A. An authority may at any time and from time to time issue bonds for anyvalid purpose, including the establishment of reserves and the payment ofinterest. In this chapter, "bonds" includes notes of any kind, interimcertificates, refunding bonds, or any other evidence of obligation.
B. The bonds of any issue shall be payable solely from the property orreceipts of the authority, including, but not limited to:
1. Taxes, rents, fees, charges, or other revenues payable to the authority;
2. Payments by financial institutions, insurance companies, or otherspursuant to letters or lines of credit, policies of insurance, or purchaseagreements;
3. Investment earnings from funds or accounts maintained pursuant to a bondresolution or trust agreement; and
4. Proceeds of refunding bonds.
C. Bonds shall be authorized by resolution of an authority and may be securedby a trust agreement by and between the authority and a corporate trustee ortrustees, which may be any trust company or bank having the powers of a trustcompany within or without the Commonwealth. The bonds shall:
1. Be issued at, above, or below par value, for cash or other valuableconsideration, and mature at a time or times, whether as serial bonds or asterm bonds or both, not exceeding forty years from their respective dates ofissue;
2. Bear interest at the fixed or variable rate or rates determined by themethod provided in the resolution or trust agreement;
3. Be payable at a time or times, in the denominations and form, and carrythe registration and privileges as to conversion and for the replacement ofmutilated, lost, or destroyed bonds as the resolution or trust agreement mayprovide;
4. Be payable in lawful money of the United States at a designated place;
5. Be subject to the terms of purchase, payment, redemption, refunding, orrefinancing that the resolution or trust agreement provides;
6. Be executed by the manual or facsimile signatures of the officers of theauthority designated by the authority, which signatures shall be valid atdelivery even for one who has ceased to hold office; and
7. Be sold in the manner and upon the terms determined by the authorityincluding private (negotiated) sale.
D. Any resolution or trust agreement may contain provisions which shall be apart of the contract with the holders of the bonds as to:
1. Pledging, assigning, or directing the use, investment, or disposition ofreceipts of the authority or proceeds or benefits of any contract andconveying or otherwise securing any property rights;
2. Setting aside loan funding deposits, debt service reserves, capitalizedinterest accounts, cost of issuance accounts and sinking funds, and theregulation, investment, and disposition thereof;
3. Limiting the purpose to which, or the investments in which, the proceedsof the sale of any issue of bonds may be applied and restrictions toinvestments of revenues or bond proceeds in government obligations for whichprincipal and interest are unconditionally guaranteed by the United States ofAmerica;
4. Limiting the issuance of additional bonds and the terms upon whichadditional bonds may be issued and secured and may rank on a parity with, orbe subordinate or superior to, other bonds;
5. Refunding or refinancing outstanding bonds;
6. Providing a procedure, if any, by which the terms of any contract withbondholders may be altered or amended and the amount of bonds the holders ofwhich must consent thereto, and the manner in which consent shall be given;
7. Defining the acts or omissions which shall constitute a default in theduties of the authority to bondholders and providing the rights of orremedies for such holders in the event of a default which may includeprovisions restricting individual right of action by bondholders;
8. Providing for guarantees, pledges of property, letters of credit, or othersecurity, or insurance for the benefit of the bondholders; and
9. Addressing any other matter relating to the bonds which the authoritydetermines appropriate.
E. No member of an authority, member of a board, or any person executing thebonds on behalf of an authority shall be liable personally for the bonds orsubject to any personal liability by reason of the issuance of the bonds.
F. An authority may enter into agreements with agents, banks, insurers, orothers for the purpose of enhancing the marketability of, or as security for,its bonds.
G. A pledge by an authority of revenues as security for an issue of bondsshall be valid and binding from the time the pledge is made.
The revenues pledged shall immediately be subject to the lien of the pledgewithout any physical delivery or further act, and the lien of any pledgeshall be valid and binding against any person having any claim of any kind intort, contract or otherwise against an authority, irrespective of whether theperson has notice.
No resolution, trust agreement or financing statement, continuationstatement, or other instrument adopted or entered into by an authority needbe filed or recorded in any public record other than the records of theauthority in order to perfect the lien against third persons, regardless ofany contrary provision of public general or local law.
H. Except to the extent restricted by an applicable resolution or trustagreement, any holder of bonds issued under this chapter or a trustee actingunder a trust agreement entered into under this chapter, may, by any suitableform of legal proceedings, protect and enforce any rights granted under thelaws of Virginia or by any applicable resolution or trust agreement.
I. An authority may issue bonds to refund any of its bonds then outstanding,including the payment of any redemption premium and any interest accrued orto accrue to the earliest or any subsequent date of redemption, purchase ormaturity of the bonds. Refunding bonds may be issued for the public purposesof realizing savings in the effective costs of debt service, directly orthrough a debt restructuring, for alleviating impending or actual default andmay be issued in one or more series in an amount in excess of that of thebonds to be refunded.
J. For a period of thirty days after the date of the filing with the circuitcourt having jurisdiction over any of the political subdivisions that aremembers of the authority and in which the facility or any portion thereofbeing financed is located a certified copy of the initial resolution of theauthority authorizing the issuance of bonds, any person in interest maycontest the validity of the bonds, the rates, rents, fees and other chargesfor the services and facilities furnished by, for the use of, or inconnection with, the facility or any portion thereof being financed, thepledge of revenues pledged to payment of the bonds, any provisions that maybe recited in any resolution, trust agreement, indenture or other instrumentauthorizing the issuance of bonds, or any matter contained in, provided foror done or to be done pursuant to the foregoing. If such contest is not givenwithin the thirty-day period, the authority to issue bonds, the validity ofany other provision contained in the resolution, trust agreement, indentureor other instrument, and all proceedings in connection with the authorizationand the issuance of the bonds shall be conclusively presumed to have beenlegally taken and no court shall have authority to inquire into such mattersand no such contest shall thereafter be instituted.
Upon the delivery of any bonds reciting that they are issued pursuant to thischapter and a resolution or resolutions adopted under this chapter, the bondsshall be conclusively presumed to be fully authorized by all the laws of theCommonwealth and to have been sold, executed and delivered by the authorityin conformity with such laws, and the validity of the bonds shall not bequestioned by a party plaintiff, a party defendant, the authority, or anyother interested party in any court, anything in this chapter or in any otherstatutes to the contrary notwithstanding.
§ 15.2-6409. Bond issues; contesting validity of bonds.
A. An authority may at any time and from time to time issue bonds for anyvalid purpose, including the establishment of reserves and the payment ofinterest. In this chapter, "bonds" includes notes of any kind, interimcertificates, refunding bonds, or any other evidence of obligation.
B. The bonds of any issue shall be payable solely from the property orreceipts of the authority, including, but not limited to:
1. Taxes, rents, fees, charges, or other revenues payable to the authority;
2. Payments by financial institutions, insurance companies, or otherspursuant to letters or lines of credit, policies of insurance, or purchaseagreements;
3. Investment earnings from funds or accounts maintained pursuant to a bondresolution or trust agreement; and
4. Proceeds of refunding bonds.
C. Bonds shall be authorized by resolution of an authority and may be securedby a trust agreement by and between the authority and a corporate trustee ortrustees, which may be any trust company or bank having the powers of a trustcompany within or without the Commonwealth. The bonds shall:
1. Be issued at, above, or below par value, for cash or other valuableconsideration, and mature at a time or times, whether as serial bonds or asterm bonds or both, not exceeding forty years from their respective dates ofissue;
2. Bear interest at the fixed or variable rate or rates determined by themethod provided in the resolution or trust agreement;
3. Be payable at a time or times, in the denominations and form, and carrythe registration and privileges as to conversion and for the replacement ofmutilated, lost, or destroyed bonds as the resolution or trust agreement mayprovide;
4. Be payable in lawful money of the United States at a designated place;
5. Be subject to the terms of purchase, payment, redemption, refunding, orrefinancing that the resolution or trust agreement provides;
6. Be executed by the manual or facsimile signatures of the officers of theauthority designated by the authority, which signatures shall be valid atdelivery even for one who has ceased to hold office; and
7. Be sold in the manner and upon the terms determined by the authorityincluding private (negotiated) sale.
D. Any resolution or trust agreement may contain provisions which shall be apart of the contract with the holders of the bonds as to:
1. Pledging, assigning, or directing the use, investment, or disposition ofreceipts of the authority or proceeds or benefits of any contract andconveying or otherwise securing any property rights;
2. Setting aside loan funding deposits, debt service reserves, capitalizedinterest accounts, cost of issuance accounts and sinking funds, and theregulation, investment, and disposition thereof;
3. Limiting the purpose to which, or the investments in which, the proceedsof the sale of any issue of bonds may be applied and restrictions toinvestments of revenues or bond proceeds in government obligations for whichprincipal and interest are unconditionally guaranteed by the United States ofAmerica;
4. Limiting the issuance of additional bonds and the terms upon whichadditional bonds may be issued and secured and may rank on a parity with, orbe subordinate or superior to, other bonds;
5. Refunding or refinancing outstanding bonds;
6. Providing a procedure, if any, by which the terms of any contract withbondholders may be altered or amended and the amount of bonds the holders ofwhich must consent thereto, and the manner in which consent shall be given;
7. Defining the acts or omissions which shall constitute a default in theduties of the authority to bondholders and providing the rights of orremedies for such holders in the event of a default which may includeprovisions restricting individual right of action by bondholders;
8. Providing for guarantees, pledges of property, letters of credit, or othersecurity, or insurance for the benefit of the bondholders; and
9. Addressing any other matter relating to the bonds which the authoritydetermines appropriate.
E. No member of an authority, member of a board, or any person executing thebonds on behalf of an authority shall be liable personally for the bonds orsubject to any personal liability by reason of the issuance of the bonds.
F. An authority may enter into agreements with agents, banks, insurers, orothers for the purpose of enhancing the marketability of, or as security for,its bonds.
G. A pledge by an authority of revenues as security for an issue of bondsshall be valid and binding from the time the pledge is made.
The revenues pledged shall immediately be subject to the lien of the pledgewithout any physical delivery or further act, and the lien of any pledgeshall be valid and binding against any person having any claim of any kind intort, contract or otherwise against an authority, irrespective of whether theperson has notice.
No resolution, trust agreement or financing statement, continuationstatement, or other instrument adopted or entered into by an authority needbe filed or recorded in any public record other than the records of theauthority in order to perfect the lien against third persons, regardless ofany contrary provision of public general or local law.
H. Except to the extent restricted by an applicable resolution or trustagreement, any holder of bonds issued under this chapter or a trustee actingunder a trust agreement entered into under this chapter, may, by any suitableform of legal proceedings, protect and enforce any rights granted under thelaws of Virginia or by any applicable resolution or trust agreement.
I. An authority may issue bonds to refund any of its bonds then outstanding,including the payment of any redemption premium and any interest accrued orto accrue to the earliest or any subsequent date of redemption, purchase ormaturity of the bonds. Refunding bonds may be issued for the public purposesof realizing savings in the effective costs of debt service, directly orthrough a debt restructuring, for alleviating impending or actual default andmay be issued in one or more series in an amount in excess of that of thebonds to be refunded.
J. For a period of thirty days after the date of the filing with the circuitcourt having jurisdiction over any of the political subdivisions that aremembers of the authority and in which the facility or any portion thereofbeing financed is located a certified copy of the initial resolution of theauthority authorizing the issuance of bonds, any person in interest maycontest the validity of the bonds, the rates, rents, fees and other chargesfor the services and facilities furnished by, for the use of, or inconnection with, the facility or any portion thereof being financed, thepledge of revenues pledged to payment of the bonds, any provisions that maybe recited in any resolution, trust agreement, indenture or other instrumentauthorizing the issuance of bonds, or any matter contained in, provided foror done or to be done pursuant to the foregoing. If such contest is not givenwithin the thirty-day period, the authority to issue bonds, the validity ofany other provision contained in the resolution, trust agreement, indentureor other instrument, and all proceedings in connection with the authorizationand the issuance of the bonds shall be conclusively presumed to have beenlegally taken and no court shall have authority to inquire into such mattersand no such contest shall thereafter be instituted.
Upon the delivery of any bonds reciting that they are issued pursuant to thischapter and a resolution or resolutions adopted under this chapter, the bondsshall be conclusively presumed to be fully authorized by all the laws of theCommonwealth and to have been sold, executed and delivered by the authorityin conformity with such laws, and the validity of the bonds shall not bequestioned by a party plaintiff, a party defendant, the authority, or anyother interested party in any court, anything in this chapter or in any otherstatutes to the contrary notwithstanding.
§ 15.2-6409. Bond issues; contesting validity of bonds.
A. An authority may at any time and from time to time issue bonds for anyvalid purpose, including the establishment of reserves and the payment ofinterest. In this chapter, "bonds" includes notes of any kind, interimcertificates, refunding bonds, or any other evidence of obligation.
B. The bonds of any issue shall be payable solely from the property orreceipts of the authority, including, but not limited to:
1. Taxes, rents, fees, charges, or other revenues payable to the authority;
2. Payments by financial institutions, insurance companies, or otherspursuant to letters or lines of credit, policies of insurance, or purchaseagreements;
3. Investment earnings from funds or accounts maintained pursuant to a bondresolution or trust agreement; and
4. Proceeds of refunding bonds.
C. Bonds shall be authorized by resolution of an authority and may be securedby a trust agreement by and between the authority and a corporate trustee ortrustees, which may be any trust company or bank having the powers of a trustcompany within or without the Commonwealth. The bonds shall:
1. Be issued at, above, or below par value, for cash or other valuableconsideration, and mature at a time or times, whether as serial bonds or asterm bonds or both, not exceeding forty years from their respective dates ofissue;
2. Bear interest at the fixed or variable rate or rates determined by themethod provided in the resolution or trust agreement;
3. Be payable at a time or times, in the denominations and form, and carrythe registration and privileges as to conversion and for the replacement ofmutilated, lost, or destroyed bonds as the resolution or trust agreement mayprovide;
4. Be payable in lawful money of the United States at a designated place;
5. Be subject to the terms of purchase, payment, redemption, refunding, orrefinancing that the resolution or trust agreement provides;
6. Be executed by the manual or facsimile signatures of the officers of theauthority designated by the authority, which signatures shall be valid atdelivery even for one who has ceased to hold office; and
7. Be sold in the manner and upon the terms determined by the authorityincluding private (negotiated) sale.
D. Any resolution or trust agreement may contain provisions which shall be apart of the contract with the holders of the bonds as to:
1. Pledging, assigning, or directing the use, investment, or disposition ofreceipts of the authority or proceeds or benefits of any contract andconveying or otherwise securing any property rights;
2. Setting aside loan funding deposits, debt service reserves, capitalizedinterest accounts, cost of issuance accounts and sinking funds, and theregulation, investment, and disposition thereof;
3. Limiting the purpose to which, or the investments in which, the proceedsof the sale of any issue of bonds may be applied and restrictions toinvestments of revenues or bond proceeds in government obligations for whichprincipal and interest are unconditionally guaranteed by the United States ofAmerica;
4. Limiting the issuance of additional bonds and the terms upon whichadditional bonds may be issued and secured and may rank on a parity with, orbe subordinate or superior to, other bonds;
5. Refunding or refinancing outstanding bonds;
6. Providing a procedure, if any, by which the terms of any contract withbondholders may be altered or amended and the amount of bonds the holders ofwhich must consent thereto, and the manner in which consent shall be given;
7. Defining the acts or omissions which shall constitute a default in theduties of the authority to bondholders and providing the rights of orremedies for such holders in the event of a default which may includeprovisions restricting individual right of action by bondholders;
8. Providing for guarantees, pledges of property, letters of credit, or othersecurity, or insurance for the benefit of the bondholders; and
9. Addressing any other matter relating to the bonds which the authoritydetermines appropriate.
E. No member of an authority, member of a board, or any person executing thebonds on behalf of an authority shall be liable personally for the bonds orsubject to any personal liability by reason of the issuance of the bonds.
F. An authority may enter into agreements with agents, banks, insurers, orothers for the purpose of enhancing the marketability of, or as security for,its bonds.
G. A pledge by an authority of revenues as security for an issue of bondsshall be valid and binding from the time the pledge is made.
The revenues pledged shall immediately be subject to the lien of the pledgewithout any physical delivery or further act, and the lien of any pledgeshall be valid and binding against any person having any claim of any kind intort, contract or otherwise against an authority, irrespective of whether theperson has notice.
No resolution, trust agreement or financing statement, continuationstatement, or other instrument adopted or entered into by an authority needbe filed or recorded in any public record other than the records of theauthority in order to perfect the lien against third persons, regardless ofany contrary provision of public general or local law.
H. Except to the extent restricted by an applicable resolution or trustagreement, any holder of bonds issued under this chapter or a trustee actingunder a trust agreement entered into under this chapter, may, by any suitableform of legal proceedings, protect and enforce any rights granted under thelaws of Virginia or by any applicable resolution or trust agreement.
I. An authority may issue bonds to refund any of its bonds then outstanding,including the payment of any redemption premium and any interest accrued orto accrue to the earliest or any subsequent date of redemption, purchase ormaturity of the bonds. Refunding bonds may be issued for the public purposesof realizing savings in the effective costs of debt service, directly orthrough a debt restructuring, for alleviating impending or actual default andmay be issued in one or more series in an amount in excess of that of thebonds to be refunded.
J. For a period of thirty days after the date of the filing with the circuitcourt having jurisdiction over any of the political subdivisions that aremembers of the authority and in which the facility or any portion thereofbeing financed is located a certified copy of the initial resolution of theauthority authorizing the issuance of bonds, any person in interest maycontest the validity of the bonds, the rates, rents, fees and other chargesfor the services and facilities furnished by, for the use of, or inconnection with, the facility or any portion thereof being financed, thepledge of revenues pledged to payment of the bonds, any provisions that maybe recited in any resolution, trust agreement, indenture or other instrumentauthorizing the issuance of bonds, or any matter contained in, provided foror done or to be done pursuant to the foregoing. If such contest is not givenwithin the thirty-day period, the authority to issue bonds, the validity ofany other provision contained in the resolution, trust agreement, indentureor other instrument, and all proceedings in connection with the authorizationand the issuance of the bonds shall be conclusively presumed to have beenlegally taken and no court shall have authority to inquire into such mattersand no such contest shall thereafter be instituted.
Upon the delivery of any bonds reciting that they are issued pursuant to thischapter and a resolution or resolutions adopted under this chapter, the bondsshall be conclusively presumed to be fully authorized by all the laws of theCommonwealth and to have been sold, executed and delivered by the authorityin conformity with such laws, and the validity of the bonds shall not bequestioned by a party plaintiff, a party defendant, the authority, or anyother interested party in any court, anything in this chapter or in any otherstatutes to the contrary notwithstanding.
