§ 62.1-216. Purchase and credit enhancements of local obligations.
The Authority shall have the power and authority, with any funds of theAuthority available for such a purpose, to purchase and acquire, on termswhich the Authority determines, local obligations to finance or refinance thecost of any project. The Authority may pledge to the payment of any bonds allor any portion of the local obligations so purchased. The Authority may also,subject to any such pledge, sell any local obligations so purchased and applythe proceeds of such a sale to the purchase of other local obligations forfinancing or refinancing the cost of any project or for any other corporatepurpose of the Authority.
The Authority shall also have the power and authority to issue creditenhancements, on terms which the Authority determines, to credit enhancelocal obligations issued to finance or refinance the cost of any project.
The Authority may require, as a condition to the purchase or creditenhancement of any local obligations, that the local government issuing thelocal obligations covenant to perform any of the following:
A. Establish and collect rents, rates, fees and charges to produce revenuesufficient to pay all or a specified portion of (i) the costs of operation,maintenance, replacement, renewal and repairs of the project; (ii) anyoutstanding indebtedness incurred for the purposes of the project, includingthe principal of and premium, if any, and interest on the local obligations;and (iii) any amounts necessary to create and maintain any required reserve,including any rate stabilization fund deemed necessary or appropriate by theAuthority to offset the need, in whole or part, for future increases inrents, rates, fees or charges;
B. Create and maintain a special fund or funds for the payment of theprincipal of and premium, if any, and interest on the local obligations andany other amounts becoming due under any agreement entered into in connectionwith the local obligations, or for the operation, maintenance, repair orreplacement of the project or any portions thereof or other property of thelocal government, and deposit into any fund or funds amounts sufficient tomake any payments as they become due and payable;
C. Create and maintain other special funds as required by the Authority; and
D. Perform other acts, including the conveyance of real and personal propertytogether with all right, title and interest therein to the Authority, or takeother actions as may be deemed necessary or desirable by the Authority tosecure payment of the principal of and premium, if any, and interest on thelocal obligations or obligations to the Authority with respect to any creditenhancement and to provide for the remedies of the Authority or other holderof the local obligations in the event of any default by the local governmentin the payment, including, without limitation, any of the following:
1. The procurement of credit enhancements or liquidity arrangements for localobligations from any source, public or private, and the payment therefor ofpremiums, fees or other charges.
2. The payment of the allocable shares of the local governments, asdetermined by the Authority, of any costs, fees, charges or expensesattributable to liquidity arrangements incurred in connection with theissuance of bonds by the Authority to acquire local obligations of one ormore local governments. The determination of such allocable shares may bemade by the Authority on any reasonable basis.
3. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, facilities, utilities orsystems, for the purpose of operations and financing, and the pledging of therevenues from such combined projects, undertakings, facilities, utilities andsystems to secure local obligations issued in connection with suchcombination or any part or parts thereof.
4. The payment of the allocable shares of the local governments, asdetermined by the Authority on any reasonable basis, of rate stabilizationfunds established or required by the Authority in connection with theissuance of bonds by the Authority to acquire or provide credit enhancementfor local obligations of two or more local governments.
All local governments issuing and selling local obligations to the Authorityor to be credit enhanced by the Authority are authorized to perform any acts,take any action, adopt any proceedings and make and carry out any contractswith the Authority that are contemplated by this chapter. Such contracts neednot be identical among all participants in financings of the Authority, butmay be structured as determined by the Authority according to the needs ofthe contracting local governments and the Authority.
To the extent permitted by law for local obligations issued after July 1,2003, local governments may enter into agreements with the Authority thatprovide for a local government to consider and make appropriations of anyfunds or revenue generated from the following: (i) taxes, funds andassessments from service districts created under Chapter 24 (§ 15.2-2400 etseq.) of Title 15.2, (ii) funds held by the local government, or (iii) anyrevenue or funds generated from sources other than property taxes imposedunder Chapter 32 (§ 58.1-3200 et seq.) or Chapter 35 (§ 58.1-3500 et seq.) ofTitle 58.1 in amounts sufficient to pay all or a specified portion of theamounts set forth in subsection A or to make deposits into the special fundor funds provided for in subsections B and C and to pledge and apply theamounts so appropriated for such purposes.
(1984, c. 699; 1985, c. 67; 1998, c. 399; 2003, c. 561.)
§ 62.1-216. Purchase and credit enhancements of local obligations.
The Authority shall have the power and authority, with any funds of theAuthority available for such a purpose, to purchase and acquire, on termswhich the Authority determines, local obligations to finance or refinance thecost of any project. The Authority may pledge to the payment of any bonds allor any portion of the local obligations so purchased. The Authority may also,subject to any such pledge, sell any local obligations so purchased and applythe proceeds of such a sale to the purchase of other local obligations forfinancing or refinancing the cost of any project or for any other corporatepurpose of the Authority.
The Authority shall also have the power and authority to issue creditenhancements, on terms which the Authority determines, to credit enhancelocal obligations issued to finance or refinance the cost of any project.
The Authority may require, as a condition to the purchase or creditenhancement of any local obligations, that the local government issuing thelocal obligations covenant to perform any of the following:
A. Establish and collect rents, rates, fees and charges to produce revenuesufficient to pay all or a specified portion of (i) the costs of operation,maintenance, replacement, renewal and repairs of the project; (ii) anyoutstanding indebtedness incurred for the purposes of the project, includingthe principal of and premium, if any, and interest on the local obligations;and (iii) any amounts necessary to create and maintain any required reserve,including any rate stabilization fund deemed necessary or appropriate by theAuthority to offset the need, in whole or part, for future increases inrents, rates, fees or charges;
B. Create and maintain a special fund or funds for the payment of theprincipal of and premium, if any, and interest on the local obligations andany other amounts becoming due under any agreement entered into in connectionwith the local obligations, or for the operation, maintenance, repair orreplacement of the project or any portions thereof or other property of thelocal government, and deposit into any fund or funds amounts sufficient tomake any payments as they become due and payable;
C. Create and maintain other special funds as required by the Authority; and
D. Perform other acts, including the conveyance of real and personal propertytogether with all right, title and interest therein to the Authority, or takeother actions as may be deemed necessary or desirable by the Authority tosecure payment of the principal of and premium, if any, and interest on thelocal obligations or obligations to the Authority with respect to any creditenhancement and to provide for the remedies of the Authority or other holderof the local obligations in the event of any default by the local governmentin the payment, including, without limitation, any of the following:
1. The procurement of credit enhancements or liquidity arrangements for localobligations from any source, public or private, and the payment therefor ofpremiums, fees or other charges.
2. The payment of the allocable shares of the local governments, asdetermined by the Authority, of any costs, fees, charges or expensesattributable to liquidity arrangements incurred in connection with theissuance of bonds by the Authority to acquire local obligations of one ormore local governments. The determination of such allocable shares may bemade by the Authority on any reasonable basis.
3. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, facilities, utilities orsystems, for the purpose of operations and financing, and the pledging of therevenues from such combined projects, undertakings, facilities, utilities andsystems to secure local obligations issued in connection with suchcombination or any part or parts thereof.
4. The payment of the allocable shares of the local governments, asdetermined by the Authority on any reasonable basis, of rate stabilizationfunds established or required by the Authority in connection with theissuance of bonds by the Authority to acquire or provide credit enhancementfor local obligations of two or more local governments.
All local governments issuing and selling local obligations to the Authorityor to be credit enhanced by the Authority are authorized to perform any acts,take any action, adopt any proceedings and make and carry out any contractswith the Authority that are contemplated by this chapter. Such contracts neednot be identical among all participants in financings of the Authority, butmay be structured as determined by the Authority according to the needs ofthe contracting local governments and the Authority.
To the extent permitted by law for local obligations issued after July 1,2003, local governments may enter into agreements with the Authority thatprovide for a local government to consider and make appropriations of anyfunds or revenue generated from the following: (i) taxes, funds andassessments from service districts created under Chapter 24 (§ 15.2-2400 etseq.) of Title 15.2, (ii) funds held by the local government, or (iii) anyrevenue or funds generated from sources other than property taxes imposedunder Chapter 32 (§ 58.1-3200 et seq.) or Chapter 35 (§ 58.1-3500 et seq.) ofTitle 58.1 in amounts sufficient to pay all or a specified portion of theamounts set forth in subsection A or to make deposits into the special fundor funds provided for in subsections B and C and to pledge and apply theamounts so appropriated for such purposes.
(1984, c. 699; 1985, c. 67; 1998, c. 399; 2003, c. 561.)
§ 62.1-216. Purchase and credit enhancements of local obligations.
The Authority shall have the power and authority, with any funds of theAuthority available for such a purpose, to purchase and acquire, on termswhich the Authority determines, local obligations to finance or refinance thecost of any project. The Authority may pledge to the payment of any bonds allor any portion of the local obligations so purchased. The Authority may also,subject to any such pledge, sell any local obligations so purchased and applythe proceeds of such a sale to the purchase of other local obligations forfinancing or refinancing the cost of any project or for any other corporatepurpose of the Authority.
The Authority shall also have the power and authority to issue creditenhancements, on terms which the Authority determines, to credit enhancelocal obligations issued to finance or refinance the cost of any project.
The Authority may require, as a condition to the purchase or creditenhancement of any local obligations, that the local government issuing thelocal obligations covenant to perform any of the following:
A. Establish and collect rents, rates, fees and charges to produce revenuesufficient to pay all or a specified portion of (i) the costs of operation,maintenance, replacement, renewal and repairs of the project; (ii) anyoutstanding indebtedness incurred for the purposes of the project, includingthe principal of and premium, if any, and interest on the local obligations;and (iii) any amounts necessary to create and maintain any required reserve,including any rate stabilization fund deemed necessary or appropriate by theAuthority to offset the need, in whole or part, for future increases inrents, rates, fees or charges;
B. Create and maintain a special fund or funds for the payment of theprincipal of and premium, if any, and interest on the local obligations andany other amounts becoming due under any agreement entered into in connectionwith the local obligations, or for the operation, maintenance, repair orreplacement of the project or any portions thereof or other property of thelocal government, and deposit into any fund or funds amounts sufficient tomake any payments as they become due and payable;
C. Create and maintain other special funds as required by the Authority; and
D. Perform other acts, including the conveyance of real and personal propertytogether with all right, title and interest therein to the Authority, or takeother actions as may be deemed necessary or desirable by the Authority tosecure payment of the principal of and premium, if any, and interest on thelocal obligations or obligations to the Authority with respect to any creditenhancement and to provide for the remedies of the Authority or other holderof the local obligations in the event of any default by the local governmentin the payment, including, without limitation, any of the following:
1. The procurement of credit enhancements or liquidity arrangements for localobligations from any source, public or private, and the payment therefor ofpremiums, fees or other charges.
2. The payment of the allocable shares of the local governments, asdetermined by the Authority, of any costs, fees, charges or expensesattributable to liquidity arrangements incurred in connection with theissuance of bonds by the Authority to acquire local obligations of one ormore local governments. The determination of such allocable shares may bemade by the Authority on any reasonable basis.
3. The combination of one or more projects, or the combination of one or moreprojects with one or more other undertakings, facilities, utilities orsystems, for the purpose of operations and financing, and the pledging of therevenues from such combined projects, undertakings, facilities, utilities andsystems to secure local obligations issued in connection with suchcombination or any part or parts thereof.
4. The payment of the allocable shares of the local governments, asdetermined by the Authority on any reasonable basis, of rate stabilizationfunds established or required by the Authority in connection with theissuance of bonds by the Authority to acquire or provide credit enhancementfor local obligations of two or more local governments.
All local governments issuing and selling local obligations to the Authorityor to be credit enhanced by the Authority are authorized to perform any acts,take any action, adopt any proceedings and make and carry out any contractswith the Authority that are contemplated by this chapter. Such contracts neednot be identical among all participants in financings of the Authority, butmay be structured as determined by the Authority according to the needs ofthe contracting local governments and the Authority.
To the extent permitted by law for local obligations issued after July 1,2003, local governments may enter into agreements with the Authority thatprovide for a local government to consider and make appropriations of anyfunds or revenue generated from the following: (i) taxes, funds andassessments from service districts created under Chapter 24 (§ 15.2-2400 etseq.) of Title 15.2, (ii) funds held by the local government, or (iii) anyrevenue or funds generated from sources other than property taxes imposedunder Chapter 32 (§ 58.1-3200 et seq.) or Chapter 35 (§ 58.1-3500 et seq.) ofTitle 58.1 in amounts sufficient to pay all or a specified portion of theamounts set forth in subsection A or to make deposits into the special fundor funds provided for in subsections B and C and to pledge and apply theamounts so appropriated for such purposes.
(1984, c. 699; 1985, c. 67; 1998, c. 399; 2003, c. 561.)
