§ 23-19. Amount of bonds; purposes; resolutions; Treasury Board to be payingagent and to approve terms and structure; payment or purchase by institution;no personal liability.
(a) Every institution shall have power and is hereby authorized and empoweredfrom time to time to execute its bonds in such aggregate principal amount asmay be determined upon by its board and approved by the Governor. All suchbonds shall be approved by the Treasury Board pursuant to § 2.2-2416, and theTreasury Board is hereby designated the paying agent of such institutionsunder this chapter. The Treasury Board's duties shall include the approval ofthe terms and structure of such bonds. Such aggregate principal amount mayinclude without limitation any costs associated with the development andmanagement of the project or legal or accounting expenses incurred by theinstitution in connection with the project for the erection of which suchbonds are issued, and the cost of issuance of the bonds, including printing,engraving, advertising, legal and other similar expenses.
(b) Such bonds shall be authorized by resolution of the board, approved bythe Governor, and may be issued in one or more series, shall bear such dateor dates, mature at such time or times, bear interest at such rate notexceeding the rate specified in § 23-30.03 payable at such time or times, bein such denominations, be in such form, either coupon or registered, carrysuch registration privileges, be executed in such manner, be payable in suchmedium of payment, at such place or places, be subject to such terms ofredemption, with or without premium, as such resolution or resolutions mayprovide. Such bonds may be sold at public or private sale for such price orprices as the board with the approval of the Governor shall determine,provided that the interest cost to maturity of the money received for anyissue of such bonds shall not exceed the rate specified in § 23-30.03;however, prior to the issuance of bonds to finance any "project," theapproval of the General Assembly must be obtained; and provided further, thatbiennially on or before the first day of September in the odd-numbered years,each educational institution shall submit to the Governor any project orprojects and the estimated cost of each separate project such educationalinstitution desires to have financed under the provisions of this chapter,and the Governor shall consider such projects and make his recommendation tothe General Assembly in the budget submitted in accordance with theprovisions of § 2.2-1508. Each educational institution is authorized tofinance only those projects approved by the General Assembly in theappropriations act for the biennium covered by such appropriations act, whichprojects need not be limited to the projects recommended by the Governor.
(c) Such bonds may be issued to finance all or a portion of the cost of anyproject plus amounts to fund issuance costs, reserve funds, capitalizedinterest for a period not to exceed one year following completion of theproject and for the corporate purpose or purposes of the institutionspecified by § 23-17 hereof or to carry out the powers conferred on theinstitution by § 23-18 hereof.
(d) Any resolution or resolutions authorizing such bonds may contain aprovision or provisions which shall be part of the contract with the holdersof such bonds as to:
(1) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of the project andpledging the same and any increases in revenues to be derived from anyexisting facilities at such institution resulting from any increase in thefees, rents or charges for or in connection with the use, occupation orservices of any such existing facilities to the payment of the principal ofand the interest on such bonds;
(2) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of any existing facilitiesat such institution and pledging the same to the payment of the principal ofand the interest on such bonds;
(3) Fixing, revising, charging and collecting student building fees and otherstudent fees from students enrolled at such institution and pledging the samein whole or in part to the payment of the principal of and the interest onsuch bonds;
(4) Pledging to the payment of the principal of and the interest on suchbonds any moneys available for the use of such institution, including, butnot limited to, and subject to Treasury Board guidelines and approvalpursuant to § 2.2-2416, moneys appropriated to such institution from thegeneral fund of the Commonwealth or from nongeneral funds, without regard tothe source of such moneys, and which are not required by law or by previousbinding contract to be devoted to some other purpose;
(5) Paying the cost of operating and maintaining any project and any suchexisting facilities from any one or more of the revenue sources mentioned insubdivisions (1), (2), (3) and (4) of this subsection creating reserves forsuch purposes and providing for the use and application thereof;
(6) Creating sinking funds for the payment of the principal of and theinterest on such bonds, creating reserves for such purposes and providing forthe use and application thereof;
(7) Limiting the right of the institution to restrict and regulate the use,occupation and services of the project and such other existing facilities orthe services rendered therein;
(8) Limiting the purposes to which the proceeds of sale of any issue of bondsthen or thereafter to be issued may be applied;
(9) Limiting the issuance of additional bonds;
(10) Setting forth the procedure, if any, by which the terms of any contractwith the holders of such bonds may be amended or abrogated and the manner inwhich such consent of such holders to any such amendment or abrogation may begiven; and
(11) Setting forth such other condition or conditions as may be required bythe United States of America or any federal agency as a condition precedentto or a requirement in connection with the obtaining of a direct grant orgrants of money for or in aid of the erection of any project, or to defray orto partially defray the cost of labor and material employed in the erectionof any project, or to obtain a loan or loans of money for or in aid of theerection of any project from the United States of America or any federalagency, provided that such other condition or conditions are approved by theGovernor.
(e) The power and obligation of an institution to pay any bonds issued underthis chapter shall be limited. Such bonds shall be payable only from any oneor more of the revenue sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor pursuant to aresolution adopted under said subsection (d). Such bonds shall in no eventconstitute an indebtedness of the institution, except to the extent of thecollection of such revenues and such institution shall not be liable to paysuch bonds or the interest thereon from any other funds; and no contractentered into by the institution pursuant to subsection (b) of this sectionshall be construed to require the costs or expenses of operation andmaintenance of the project for the erection of which the bonds are issued andany such other existing facilities to be paid out of any funds other than therevenues derived from the sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor. Any provision ofthe general laws to the contrary notwithstanding, any bonds issued pursuantto the authority of this chapter shall be fully negotiable within the meaningand for all the purposes of Title 8.3A.
(f) Neither the Governor nor the members of the board nor any personexecuting such bonds shall be liable personally on the bonds or be subject toany personal liability or accountability by reason of the issuance thereof.
(g) The institution shall have power out of any funds available therefor topurchase any bonds issued by it at a price not more than the principal amountthereof and the accrued interest. All bonds so purchased shall be cancelledunless purchased as an endowment fund investment. This paragraph shall notapply to the redemption of bonds.
(h) In any case in which an institution shall have obtained a loan for or inaid of the erection of any project from the United States of America or anyfederal agency, which loan requires the establishment of a debt servicereserve, the institution, with the consent of the Governor, may depositsecurities in a separate collateral account in an amount equal to therequired debt service reserve, which securities shall be pledged to meet thedebt service requirements only if the revenues derived from any one or moreof the sources mentioned in subdivisions (1), (2), (3) and (4) of subsection(d) of this section and pledged for the payment of such loan becomeinsufficient for such purpose. The face value of United States governmentsecurities and the market value of all other securities shall be deemed to bethe value of any securities so deposited. Nothing herein shall be construedas prohibiting repayment of any portion of such loan from income derived fromthe securities so deposited. No securities shall be deposited in any suchcollateral account unless the same shall have been purchased with funds, theuse of which is in nowise limited or restricted or shall have been donated tosuch institution for the purpose of establishing such debt service reserve.
(1933, p. 85; 1936-7, p. 28; 1946, p. 184; 1950, p. 366; 1954, c. 397; 1958,cc. 17, 486; 1959, Ex. Sess., c. 61; 1962, c. 373; 1964, c. 635; 1970, c.609; 1990, cc. 54, 856; 1996, cc. 636, 656, 672, 689.)
§ 23-19. Amount of bonds; purposes; resolutions; Treasury Board to be payingagent and to approve terms and structure; payment or purchase by institution;no personal liability.
(a) Every institution shall have power and is hereby authorized and empoweredfrom time to time to execute its bonds in such aggregate principal amount asmay be determined upon by its board and approved by the Governor. All suchbonds shall be approved by the Treasury Board pursuant to § 2.2-2416, and theTreasury Board is hereby designated the paying agent of such institutionsunder this chapter. The Treasury Board's duties shall include the approval ofthe terms and structure of such bonds. Such aggregate principal amount mayinclude without limitation any costs associated with the development andmanagement of the project or legal or accounting expenses incurred by theinstitution in connection with the project for the erection of which suchbonds are issued, and the cost of issuance of the bonds, including printing,engraving, advertising, legal and other similar expenses.
(b) Such bonds shall be authorized by resolution of the board, approved bythe Governor, and may be issued in one or more series, shall bear such dateor dates, mature at such time or times, bear interest at such rate notexceeding the rate specified in § 23-30.03 payable at such time or times, bein such denominations, be in such form, either coupon or registered, carrysuch registration privileges, be executed in such manner, be payable in suchmedium of payment, at such place or places, be subject to such terms ofredemption, with or without premium, as such resolution or resolutions mayprovide. Such bonds may be sold at public or private sale for such price orprices as the board with the approval of the Governor shall determine,provided that the interest cost to maturity of the money received for anyissue of such bonds shall not exceed the rate specified in § 23-30.03;however, prior to the issuance of bonds to finance any "project," theapproval of the General Assembly must be obtained; and provided further, thatbiennially on or before the first day of September in the odd-numbered years,each educational institution shall submit to the Governor any project orprojects and the estimated cost of each separate project such educationalinstitution desires to have financed under the provisions of this chapter,and the Governor shall consider such projects and make his recommendation tothe General Assembly in the budget submitted in accordance with theprovisions of § 2.2-1508. Each educational institution is authorized tofinance only those projects approved by the General Assembly in theappropriations act for the biennium covered by such appropriations act, whichprojects need not be limited to the projects recommended by the Governor.
(c) Such bonds may be issued to finance all or a portion of the cost of anyproject plus amounts to fund issuance costs, reserve funds, capitalizedinterest for a period not to exceed one year following completion of theproject and for the corporate purpose or purposes of the institutionspecified by § 23-17 hereof or to carry out the powers conferred on theinstitution by § 23-18 hereof.
(d) Any resolution or resolutions authorizing such bonds may contain aprovision or provisions which shall be part of the contract with the holdersof such bonds as to:
(1) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of the project andpledging the same and any increases in revenues to be derived from anyexisting facilities at such institution resulting from any increase in thefees, rents or charges for or in connection with the use, occupation orservices of any such existing facilities to the payment of the principal ofand the interest on such bonds;
(2) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of any existing facilitiesat such institution and pledging the same to the payment of the principal ofand the interest on such bonds;
(3) Fixing, revising, charging and collecting student building fees and otherstudent fees from students enrolled at such institution and pledging the samein whole or in part to the payment of the principal of and the interest onsuch bonds;
(4) Pledging to the payment of the principal of and the interest on suchbonds any moneys available for the use of such institution, including, butnot limited to, and subject to Treasury Board guidelines and approvalpursuant to § 2.2-2416, moneys appropriated to such institution from thegeneral fund of the Commonwealth or from nongeneral funds, without regard tothe source of such moneys, and which are not required by law or by previousbinding contract to be devoted to some other purpose;
(5) Paying the cost of operating and maintaining any project and any suchexisting facilities from any one or more of the revenue sources mentioned insubdivisions (1), (2), (3) and (4) of this subsection creating reserves forsuch purposes and providing for the use and application thereof;
(6) Creating sinking funds for the payment of the principal of and theinterest on such bonds, creating reserves for such purposes and providing forthe use and application thereof;
(7) Limiting the right of the institution to restrict and regulate the use,occupation and services of the project and such other existing facilities orthe services rendered therein;
(8) Limiting the purposes to which the proceeds of sale of any issue of bondsthen or thereafter to be issued may be applied;
(9) Limiting the issuance of additional bonds;
(10) Setting forth the procedure, if any, by which the terms of any contractwith the holders of such bonds may be amended or abrogated and the manner inwhich such consent of such holders to any such amendment or abrogation may begiven; and
(11) Setting forth such other condition or conditions as may be required bythe United States of America or any federal agency as a condition precedentto or a requirement in connection with the obtaining of a direct grant orgrants of money for or in aid of the erection of any project, or to defray orto partially defray the cost of labor and material employed in the erectionof any project, or to obtain a loan or loans of money for or in aid of theerection of any project from the United States of America or any federalagency, provided that such other condition or conditions are approved by theGovernor.
(e) The power and obligation of an institution to pay any bonds issued underthis chapter shall be limited. Such bonds shall be payable only from any oneor more of the revenue sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor pursuant to aresolution adopted under said subsection (d). Such bonds shall in no eventconstitute an indebtedness of the institution, except to the extent of thecollection of such revenues and such institution shall not be liable to paysuch bonds or the interest thereon from any other funds; and no contractentered into by the institution pursuant to subsection (b) of this sectionshall be construed to require the costs or expenses of operation andmaintenance of the project for the erection of which the bonds are issued andany such other existing facilities to be paid out of any funds other than therevenues derived from the sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor. Any provision ofthe general laws to the contrary notwithstanding, any bonds issued pursuantto the authority of this chapter shall be fully negotiable within the meaningand for all the purposes of Title 8.3A.
(f) Neither the Governor nor the members of the board nor any personexecuting such bonds shall be liable personally on the bonds or be subject toany personal liability or accountability by reason of the issuance thereof.
(g) The institution shall have power out of any funds available therefor topurchase any bonds issued by it at a price not more than the principal amountthereof and the accrued interest. All bonds so purchased shall be cancelledunless purchased as an endowment fund investment. This paragraph shall notapply to the redemption of bonds.
(h) In any case in which an institution shall have obtained a loan for or inaid of the erection of any project from the United States of America or anyfederal agency, which loan requires the establishment of a debt servicereserve, the institution, with the consent of the Governor, may depositsecurities in a separate collateral account in an amount equal to therequired debt service reserve, which securities shall be pledged to meet thedebt service requirements only if the revenues derived from any one or moreof the sources mentioned in subdivisions (1), (2), (3) and (4) of subsection(d) of this section and pledged for the payment of such loan becomeinsufficient for such purpose. The face value of United States governmentsecurities and the market value of all other securities shall be deemed to bethe value of any securities so deposited. Nothing herein shall be construedas prohibiting repayment of any portion of such loan from income derived fromthe securities so deposited. No securities shall be deposited in any suchcollateral account unless the same shall have been purchased with funds, theuse of which is in nowise limited or restricted or shall have been donated tosuch institution for the purpose of establishing such debt service reserve.
(1933, p. 85; 1936-7, p. 28; 1946, p. 184; 1950, p. 366; 1954, c. 397; 1958,cc. 17, 486; 1959, Ex. Sess., c. 61; 1962, c. 373; 1964, c. 635; 1970, c.609; 1990, cc. 54, 856; 1996, cc. 636, 656, 672, 689.)
§ 23-19. Amount of bonds; purposes; resolutions; Treasury Board to be payingagent and to approve terms and structure; payment or purchase by institution;no personal liability.
(a) Every institution shall have power and is hereby authorized and empoweredfrom time to time to execute its bonds in such aggregate principal amount asmay be determined upon by its board and approved by the Governor. All suchbonds shall be approved by the Treasury Board pursuant to § 2.2-2416, and theTreasury Board is hereby designated the paying agent of such institutionsunder this chapter. The Treasury Board's duties shall include the approval ofthe terms and structure of such bonds. Such aggregate principal amount mayinclude without limitation any costs associated with the development andmanagement of the project or legal or accounting expenses incurred by theinstitution in connection with the project for the erection of which suchbonds are issued, and the cost of issuance of the bonds, including printing,engraving, advertising, legal and other similar expenses.
(b) Such bonds shall be authorized by resolution of the board, approved bythe Governor, and may be issued in one or more series, shall bear such dateor dates, mature at such time or times, bear interest at such rate notexceeding the rate specified in § 23-30.03 payable at such time or times, bein such denominations, be in such form, either coupon or registered, carrysuch registration privileges, be executed in such manner, be payable in suchmedium of payment, at such place or places, be subject to such terms ofredemption, with or without premium, as such resolution or resolutions mayprovide. Such bonds may be sold at public or private sale for such price orprices as the board with the approval of the Governor shall determine,provided that the interest cost to maturity of the money received for anyissue of such bonds shall not exceed the rate specified in § 23-30.03;however, prior to the issuance of bonds to finance any "project," theapproval of the General Assembly must be obtained; and provided further, thatbiennially on or before the first day of September in the odd-numbered years,each educational institution shall submit to the Governor any project orprojects and the estimated cost of each separate project such educationalinstitution desires to have financed under the provisions of this chapter,and the Governor shall consider such projects and make his recommendation tothe General Assembly in the budget submitted in accordance with theprovisions of § 2.2-1508. Each educational institution is authorized tofinance only those projects approved by the General Assembly in theappropriations act for the biennium covered by such appropriations act, whichprojects need not be limited to the projects recommended by the Governor.
(c) Such bonds may be issued to finance all or a portion of the cost of anyproject plus amounts to fund issuance costs, reserve funds, capitalizedinterest for a period not to exceed one year following completion of theproject and for the corporate purpose or purposes of the institutionspecified by § 23-17 hereof or to carry out the powers conferred on theinstitution by § 23-18 hereof.
(d) Any resolution or resolutions authorizing such bonds may contain aprovision or provisions which shall be part of the contract with the holdersof such bonds as to:
(1) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of the project andpledging the same and any increases in revenues to be derived from anyexisting facilities at such institution resulting from any increase in thefees, rents or charges for or in connection with the use, occupation orservices of any such existing facilities to the payment of the principal ofand the interest on such bonds;
(2) Fixing, revising, charging and collecting fees, rents and charges for orin connection with the use, occupation or services of any existing facilitiesat such institution and pledging the same to the payment of the principal ofand the interest on such bonds;
(3) Fixing, revising, charging and collecting student building fees and otherstudent fees from students enrolled at such institution and pledging the samein whole or in part to the payment of the principal of and the interest onsuch bonds;
(4) Pledging to the payment of the principal of and the interest on suchbonds any moneys available for the use of such institution, including, butnot limited to, and subject to Treasury Board guidelines and approvalpursuant to § 2.2-2416, moneys appropriated to such institution from thegeneral fund of the Commonwealth or from nongeneral funds, without regard tothe source of such moneys, and which are not required by law or by previousbinding contract to be devoted to some other purpose;
(5) Paying the cost of operating and maintaining any project and any suchexisting facilities from any one or more of the revenue sources mentioned insubdivisions (1), (2), (3) and (4) of this subsection creating reserves forsuch purposes and providing for the use and application thereof;
(6) Creating sinking funds for the payment of the principal of and theinterest on such bonds, creating reserves for such purposes and providing forthe use and application thereof;
(7) Limiting the right of the institution to restrict and regulate the use,occupation and services of the project and such other existing facilities orthe services rendered therein;
(8) Limiting the purposes to which the proceeds of sale of any issue of bondsthen or thereafter to be issued may be applied;
(9) Limiting the issuance of additional bonds;
(10) Setting forth the procedure, if any, by which the terms of any contractwith the holders of such bonds may be amended or abrogated and the manner inwhich such consent of such holders to any such amendment or abrogation may begiven; and
(11) Setting forth such other condition or conditions as may be required bythe United States of America or any federal agency as a condition precedentto or a requirement in connection with the obtaining of a direct grant orgrants of money for or in aid of the erection of any project, or to defray orto partially defray the cost of labor and material employed in the erectionof any project, or to obtain a loan or loans of money for or in aid of theerection of any project from the United States of America or any federalagency, provided that such other condition or conditions are approved by theGovernor.
(e) The power and obligation of an institution to pay any bonds issued underthis chapter shall be limited. Such bonds shall be payable only from any oneor more of the revenue sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor pursuant to aresolution adopted under said subsection (d). Such bonds shall in no eventconstitute an indebtedness of the institution, except to the extent of thecollection of such revenues and such institution shall not be liable to paysuch bonds or the interest thereon from any other funds; and no contractentered into by the institution pursuant to subsection (b) of this sectionshall be construed to require the costs or expenses of operation andmaintenance of the project for the erection of which the bonds are issued andany such other existing facilities to be paid out of any funds other than therevenues derived from the sources mentioned in subdivisions (1), (2), (3) and(4) of subsection (d) of this section and pledged therefor. Any provision ofthe general laws to the contrary notwithstanding, any bonds issued pursuantto the authority of this chapter shall be fully negotiable within the meaningand for all the purposes of Title 8.3A.
(f) Neither the Governor nor the members of the board nor any personexecuting such bonds shall be liable personally on the bonds or be subject toany personal liability or accountability by reason of the issuance thereof.
(g) The institution shall have power out of any funds available therefor topurchase any bonds issued by it at a price not more than the principal amountthereof and the accrued interest. All bonds so purchased shall be cancelledunless purchased as an endowment fund investment. This paragraph shall notapply to the redemption of bonds.
(h) In any case in which an institution shall have obtained a loan for or inaid of the erection of any project from the United States of America or anyfederal agency, which loan requires the establishment of a debt servicereserve, the institution, with the consent of the Governor, may depositsecurities in a separate collateral account in an amount equal to therequired debt service reserve, which securities shall be pledged to meet thedebt service requirements only if the revenues derived from any one or moreof the sources mentioned in subdivisions (1), (2), (3) and (4) of subsection(d) of this section and pledged for the payment of such loan becomeinsufficient for such purpose. The face value of United States governmentsecurities and the market value of all other securities shall be deemed to bethe value of any securities so deposited. Nothing herein shall be construedas prohibiting repayment of any portion of such loan from income derived fromthe securities so deposited. No securities shall be deposited in any suchcollateral account unless the same shall have been purchased with funds, theuse of which is in nowise limited or restricted or shall have been donated tosuch institution for the purpose of establishing such debt service reserve.
(1933, p. 85; 1936-7, p. 28; 1946, p. 184; 1950, p. 366; 1954, c. 397; 1958,cc. 17, 486; 1959, Ex. Sess., c. 61; 1962, c. 373; 1964, c. 635; 1970, c.609; 1990, cc. 54, 856; 1996, cc. 636, 656, 672, 689.)
