§ 2.2-2418. Use of bond anticipation notes by the Treasury Board.
Whenever the General Assembly has enacted legislation pursuant to Article X,Section 9 (b), (c), or (d) of the Constitution of Virginia authorizing theissuance of bonds for capital projects of the Commonwealth or any stateagency, institution, board, or authority (a "state instrumentality") wheredebt service payments on the bonds are expected to be made in whole or inpart from appropriations of the Commonwealth, the Board, with the consent ofthe Governor, may borrow money in anticipation of the issuance of the bondsto provide funds, with any other available funds, to pay the costs ofacquiring, constructing, renovating, enlarging, improving, and equipping anyone or more of the capital projects for which such bonds have beenauthorized. Any such borrowing shall be evidenced by notes of theCommonwealth that shall be in such form, shall be executed in such manner,shall bear interest at such rates, either at fixed rates or at ratesestablished by formula or other method, and may contain such otherprovisions, all as the Board, or the State Treasurer when authorized by theBoard, may determine. Such notes may bear interest at a rate subject toinclusion in gross income for federal income tax purposes as determined bythe Board, with the consent of the Governor. Such notes may be made payablefrom the proceeds of the bonds, other notes, or other sources of fundsauthorized by the General Assembly. The proceeds of the notes, to the extentnot required to pay the principal or interest on maturing notes, or expensesassociated therewith, shall be paid or otherwise made available to theCommonwealth or appropriate state instrumentality to pay the costs of suchcapital projects. However, the undertaking and obligation of (i) the Board tomake such note proceeds available to the state instrumentality and (ii) thestate instrumentality to pay or provide for the payment of the interest andprincipal coming due on the notes and to issue its own bonds or otherwiseretire the notes within five years of the date of their initial issuanceshall be set forth in a written agreement between the Board and the stateinstrumentality. No such notes shall be issued by the Board for or on behalfof a state instrumentality unless the Board first determines that suchwritten agreement provides reasonable assurance of the full and timelypayment of the debt service on the notes.
No law authorizing the issuance of bonds and notes for which bondanticipation notes have been issued by the Board shall be repealed orotherwise vitiated without first providing for the payment of the relatedbond anticipation notes of the Board.
(1991, c. 554, § 2.1-179.3; 1996, cc. 636, 656; 2001, c. 844.)
§ 2.2-2418. Use of bond anticipation notes by the Treasury Board.
Whenever the General Assembly has enacted legislation pursuant to Article X,Section 9 (b), (c), or (d) of the Constitution of Virginia authorizing theissuance of bonds for capital projects of the Commonwealth or any stateagency, institution, board, or authority (a "state instrumentality") wheredebt service payments on the bonds are expected to be made in whole or inpart from appropriations of the Commonwealth, the Board, with the consent ofthe Governor, may borrow money in anticipation of the issuance of the bondsto provide funds, with any other available funds, to pay the costs ofacquiring, constructing, renovating, enlarging, improving, and equipping anyone or more of the capital projects for which such bonds have beenauthorized. Any such borrowing shall be evidenced by notes of theCommonwealth that shall be in such form, shall be executed in such manner,shall bear interest at such rates, either at fixed rates or at ratesestablished by formula or other method, and may contain such otherprovisions, all as the Board, or the State Treasurer when authorized by theBoard, may determine. Such notes may bear interest at a rate subject toinclusion in gross income for federal income tax purposes as determined bythe Board, with the consent of the Governor. Such notes may be made payablefrom the proceeds of the bonds, other notes, or other sources of fundsauthorized by the General Assembly. The proceeds of the notes, to the extentnot required to pay the principal or interest on maturing notes, or expensesassociated therewith, shall be paid or otherwise made available to theCommonwealth or appropriate state instrumentality to pay the costs of suchcapital projects. However, the undertaking and obligation of (i) the Board tomake such note proceeds available to the state instrumentality and (ii) thestate instrumentality to pay or provide for the payment of the interest andprincipal coming due on the notes and to issue its own bonds or otherwiseretire the notes within five years of the date of their initial issuanceshall be set forth in a written agreement between the Board and the stateinstrumentality. No such notes shall be issued by the Board for or on behalfof a state instrumentality unless the Board first determines that suchwritten agreement provides reasonable assurance of the full and timelypayment of the debt service on the notes.
No law authorizing the issuance of bonds and notes for which bondanticipation notes have been issued by the Board shall be repealed orotherwise vitiated without first providing for the payment of the relatedbond anticipation notes of the Board.
(1991, c. 554, § 2.1-179.3; 1996, cc. 636, 656; 2001, c. 844.)
§ 2.2-2418. Use of bond anticipation notes by the Treasury Board.
Whenever the General Assembly has enacted legislation pursuant to Article X,Section 9 (b), (c), or (d) of the Constitution of Virginia authorizing theissuance of bonds for capital projects of the Commonwealth or any stateagency, institution, board, or authority (a "state instrumentality") wheredebt service payments on the bonds are expected to be made in whole or inpart from appropriations of the Commonwealth, the Board, with the consent ofthe Governor, may borrow money in anticipation of the issuance of the bondsto provide funds, with any other available funds, to pay the costs ofacquiring, constructing, renovating, enlarging, improving, and equipping anyone or more of the capital projects for which such bonds have beenauthorized. Any such borrowing shall be evidenced by notes of theCommonwealth that shall be in such form, shall be executed in such manner,shall bear interest at such rates, either at fixed rates or at ratesestablished by formula or other method, and may contain such otherprovisions, all as the Board, or the State Treasurer when authorized by theBoard, may determine. Such notes may bear interest at a rate subject toinclusion in gross income for federal income tax purposes as determined bythe Board, with the consent of the Governor. Such notes may be made payablefrom the proceeds of the bonds, other notes, or other sources of fundsauthorized by the General Assembly. The proceeds of the notes, to the extentnot required to pay the principal or interest on maturing notes, or expensesassociated therewith, shall be paid or otherwise made available to theCommonwealth or appropriate state instrumentality to pay the costs of suchcapital projects. However, the undertaking and obligation of (i) the Board tomake such note proceeds available to the state instrumentality and (ii) thestate instrumentality to pay or provide for the payment of the interest andprincipal coming due on the notes and to issue its own bonds or otherwiseretire the notes within five years of the date of their initial issuanceshall be set forth in a written agreement between the Board and the stateinstrumentality. No such notes shall be issued by the Board for or on behalfof a state instrumentality unless the Board first determines that suchwritten agreement provides reasonable assurance of the full and timelypayment of the debt service on the notes.
No law authorizing the issuance of bonds and notes for which bondanticipation notes have been issued by the Board shall be repealed orotherwise vitiated without first providing for the payment of the relatedbond anticipation notes of the Board.
(1991, c. 554, § 2.1-179.3; 1996, cc. 636, 656; 2001, c. 844.)
