§ 23-38.104. Financial operations of covered institutions.
A. Subject to such accountability measures and audits as are provided in thissubchapter or as may otherwise be specifically made applicable by other lawto institutions governed by this subchapter and subject to the expressedterms of the management agreement described in § 23-38.88, a coveredinstitution may be permitted (i) to independently manage its operations andfinances, including holding and investing its tuition, fees, research funds,auxiliary enterprise funds, and all other public funds; (ii) to create anyand all financial policies deemed necessary to conduct its financialoperations; (iii) to adopt the budget for the institution; and (iv) tocontrol the expenditures of all moneys generated or received by theinstitution, including tuition, fees and other nongeneral fund revenuesources.
B. Subject to the express terms of the management agreement described in §23-38.88, in managing its operations and finances, the Board of Visitors of acovered institution shall have sole authority to establish tuition, fee,room, board, and other charges consistent with sum sufficient appropriationauthority for all nongeneral funds as provided by the Governor and theGeneral Assembly in the Commonwealth's biennial appropriations authorization.The Board of Visitors shall include the institution's commitment to provideneed-based grant aid for middle- and lower-income Virginia students in amanner that encourages student enrollment and progression without respect topotential increases in tuition and fees. In the event that any or all of thenongeneral funds are retained by the institution, the institution shallinvest such funds consistent with an investment policy established by theBoard of Visitors and retain all income earned on such investments. In theevent that any or all of the nongeneral funds are held on behalf of theinstitution by the Commonwealth of Virginia, the institution shall receive ashare of the income earned by the Commonwealth on the investment of suchfunds as provided in § 2.2-5005.
C. The management agreement described in § 23-38.88 shall include thequantification of cost savings realized as a result of the additionaloperational flexibility provided pursuant to this subchapter.
D. A covered institution may enter into any contract which the institutiondetermines to be necessary or appropriate to place any bond or investment ofthe institution, in whole or in part, on the interest rate, cash flow, orother basis desired by the institution, which contract may include, withoutlimitation, contracts commonly known as interest rate swap agreements, andfutures or contracts providing for payments based on levels of, or changesin, interest rates. These contracts or arrangements may be entered into bythe institution in connection with, incidental to, entering into, ormaintaining any (i) agreement that secures bonds, notes, or other obligationsor (ii) investment or contract providing for investment, otherwise authorizedby law, including but not limited to § 23-38.105. These contracts andarrangements may contain such payment, security, default, remedy, and otherterms and conditions as determined by the institution, after giving dueconsideration to the creditworthiness of the counterpart or other obligatedparty, including any rating by any nationally recognized rating agency, andany other criteria as may be appropriate. Any money set aside and pledged tosecure payments of bonds, notes or other obligations or any of the contractsentered into pursuant to this section may be pledged to and used to serviceany of the contracts or agreements entered into pursuant to this section.
§ 23-38.104. Financial operations of covered institutions.
A. Subject to such accountability measures and audits as are provided in thissubchapter or as may otherwise be specifically made applicable by other lawto institutions governed by this subchapter and subject to the expressedterms of the management agreement described in § 23-38.88, a coveredinstitution may be permitted (i) to independently manage its operations andfinances, including holding and investing its tuition, fees, research funds,auxiliary enterprise funds, and all other public funds; (ii) to create anyand all financial policies deemed necessary to conduct its financialoperations; (iii) to adopt the budget for the institution; and (iv) tocontrol the expenditures of all moneys generated or received by theinstitution, including tuition, fees and other nongeneral fund revenuesources.
B. Subject to the express terms of the management agreement described in §23-38.88, in managing its operations and finances, the Board of Visitors of acovered institution shall have sole authority to establish tuition, fee,room, board, and other charges consistent with sum sufficient appropriationauthority for all nongeneral funds as provided by the Governor and theGeneral Assembly in the Commonwealth's biennial appropriations authorization.The Board of Visitors shall include the institution's commitment to provideneed-based grant aid for middle- and lower-income Virginia students in amanner that encourages student enrollment and progression without respect topotential increases in tuition and fees. In the event that any or all of thenongeneral funds are retained by the institution, the institution shallinvest such funds consistent with an investment policy established by theBoard of Visitors and retain all income earned on such investments. In theevent that any or all of the nongeneral funds are held on behalf of theinstitution by the Commonwealth of Virginia, the institution shall receive ashare of the income earned by the Commonwealth on the investment of suchfunds as provided in § 2.2-5005.
C. The management agreement described in § 23-38.88 shall include thequantification of cost savings realized as a result of the additionaloperational flexibility provided pursuant to this subchapter.
D. A covered institution may enter into any contract which the institutiondetermines to be necessary or appropriate to place any bond or investment ofthe institution, in whole or in part, on the interest rate, cash flow, orother basis desired by the institution, which contract may include, withoutlimitation, contracts commonly known as interest rate swap agreements, andfutures or contracts providing for payments based on levels of, or changesin, interest rates. These contracts or arrangements may be entered into bythe institution in connection with, incidental to, entering into, ormaintaining any (i) agreement that secures bonds, notes, or other obligationsor (ii) investment or contract providing for investment, otherwise authorizedby law, including but not limited to § 23-38.105. These contracts andarrangements may contain such payment, security, default, remedy, and otherterms and conditions as determined by the institution, after giving dueconsideration to the creditworthiness of the counterpart or other obligatedparty, including any rating by any nationally recognized rating agency, andany other criteria as may be appropriate. Any money set aside and pledged tosecure payments of bonds, notes or other obligations or any of the contractsentered into pursuant to this section may be pledged to and used to serviceany of the contracts or agreements entered into pursuant to this section.
§ 23-38.104. Financial operations of covered institutions.
A. Subject to such accountability measures and audits as are provided in thissubchapter or as may otherwise be specifically made applicable by other lawto institutions governed by this subchapter and subject to the expressedterms of the management agreement described in § 23-38.88, a coveredinstitution may be permitted (i) to independently manage its operations andfinances, including holding and investing its tuition, fees, research funds,auxiliary enterprise funds, and all other public funds; (ii) to create anyand all financial policies deemed necessary to conduct its financialoperations; (iii) to adopt the budget for the institution; and (iv) tocontrol the expenditures of all moneys generated or received by theinstitution, including tuition, fees and other nongeneral fund revenuesources.
B. Subject to the express terms of the management agreement described in §23-38.88, in managing its operations and finances, the Board of Visitors of acovered institution shall have sole authority to establish tuition, fee,room, board, and other charges consistent with sum sufficient appropriationauthority for all nongeneral funds as provided by the Governor and theGeneral Assembly in the Commonwealth's biennial appropriations authorization.The Board of Visitors shall include the institution's commitment to provideneed-based grant aid for middle- and lower-income Virginia students in amanner that encourages student enrollment and progression without respect topotential increases in tuition and fees. In the event that any or all of thenongeneral funds are retained by the institution, the institution shallinvest such funds consistent with an investment policy established by theBoard of Visitors and retain all income earned on such investments. In theevent that any or all of the nongeneral funds are held on behalf of theinstitution by the Commonwealth of Virginia, the institution shall receive ashare of the income earned by the Commonwealth on the investment of suchfunds as provided in § 2.2-5005.
C. The management agreement described in § 23-38.88 shall include thequantification of cost savings realized as a result of the additionaloperational flexibility provided pursuant to this subchapter.
D. A covered institution may enter into any contract which the institutiondetermines to be necessary or appropriate to place any bond or investment ofthe institution, in whole or in part, on the interest rate, cash flow, orother basis desired by the institution, which contract may include, withoutlimitation, contracts commonly known as interest rate swap agreements, andfutures or contracts providing for payments based on levels of, or changesin, interest rates. These contracts or arrangements may be entered into bythe institution in connection with, incidental to, entering into, ormaintaining any (i) agreement that secures bonds, notes, or other obligationsor (ii) investment or contract providing for investment, otherwise authorizedby law, including but not limited to § 23-38.105. These contracts andarrangements may contain such payment, security, default, remedy, and otherterms and conditions as determined by the institution, after giving dueconsideration to the creditworthiness of the counterpart or other obligatedparty, including any rating by any nationally recognized rating agency, andany other criteria as may be appropriate. Any money set aside and pledged tosecure payments of bonds, notes or other obligations or any of the contractsentered into pursuant to this section may be pledged to and used to serviceany of the contracts or agreements entered into pursuant to this section.
