15.2-2607 - Provisions which may be embodied in bond ordinances or resolution; adoption; filing copy with court.
§ 15.2-2607. Provisions which may be embodied in bond ordinances orresolution; adoption; filing copy with court.
The governing body of any locality, subject to the approval of a majority ofthe qualified voters of the locality voting on the issuance of such bonds ifrequired by the Constitution of Virginia or by this chapter, is authorized toprovide by ordinance or resolution for the issuance, at one time or from timeto time, of bonds of the locality for the purposes set forth in and subjectto the provisions of this chapter.
Any such ordinance or resolution may contain provisions which shall be a partof the contract with the owners of the bonds as to:
1. The payment of the principal of and premium, if any, and the interest onbonds from ad valorem taxes to be levied without limitation as to rate oramount on all property subject to taxation and the pledging of the full faithand credit of the locality to secure the payment of bonds;
2. The pledge of specified revenues of the locality, other than taxes, advalorem or otherwise, including, without limitation, the pledge of therevenues of any revenue-producing undertaking or undertakings, to the paymentof the principal of and premium, if any, and interest on bonds;
3. The granting of a mortgage or deed of trust lien on any specificrevenue-producing undertaking or undertakings to secure the payment of theprincipal of and premium, if any, and interest on bonds issued to finance inwhole or in part the costs of the undertaking or undertakings, but only ifthe full faith and credit of the locality is not pledged to the payment ofthe bonds;
4. The securing of the payment of the principal of and premium, if any, andinterest on bonds by an ordinance resolution, trust agreement, indenture orother instrument, which may (i) appoint any trust company or bank having thepowers of a trust company within or outside the Commonwealth as corporatetrustee, (ii) set forth the rights and remedies of the bondholders and of thetrustee, (iii) restrict the individual right of action by bondholders, and(iv) contain any other provisions as the governing body of the locality deemsreasonable and proper for the security of the bondholders;
5. The payment of the principal of and premium, if any, and the interest onbonds from any one or more of the sources of funds provided for in thissection or any combination of them and the pledging of any one or more of thesources of funds or any combination of them to secure the payment of theprincipal of and premium, if any and interest on bonds;
6. The rates, rents, fees, charges, taxes and other revenues or receipts ofany revenue-producing undertaking or undertakings and the amounts to beraised in each year by them, and the use and disposition of such rates,rents, fees, charges, taxes and other revenues and receipts of anyundertaking or undertakings;
7. The setting aside of reserves or sinking funds and the regulation anddisposition of them;
8. Limitations on the right of the locality to restrict and regulate the useof any project;
9. Limitations on the purpose to which the proceeds of sale of any bonds maybe applied;
10. Limitations on issuance of additional revenue bonds;
11. The procedure, if any, by which the terms of any contract withbondholders may be amended or discharged, the amount of bonds the owners ofwhich shall consent to the amendment or abrogation, and the manner in whichthe consent must be given;
12. Conferring upon the bondholders or the trustee under any ordinance,resolution, trust agreement, indenture or other instrument remedies forenforcing the rights of the bondholders and requiring the governing body tocarry out any agreement with the bondholders;
13. Any other matter required by any state or federal agency as a conditionprecedent to the obtaining of a direct grant or grants of money for or in aidof any project or to defray or partially to defray the cost of the labor andmaterials employed upon any project, or to obtain a loan or loans of moneyfor or in aid of any project from any state or federal agency; and
14. Any provisions necessary to qualify the interest on the bonds forexclusion from gross income for federal income tax purposes and to maintainthat exclusion.
Any ordinance or resolution authorizing the issuance of bonds may be finallyadopted at the meeting at which it is introduced, which may be a regular orspecial meeting, by a majority of the members of the governing body. Acertified copy of each such ordinance or resolution shall be filed in thecircuit court having jurisdiction over the locality. When any town issituated partly in two or more counties, the certified copy of the ordinanceor resolution may be presented to the circuit court for any of the counties.Except as expressly required by this article, the ordinance or resolutionneed not be published, posted or advertised.
(Code 1950, § 15-666.40; 1958, c. 640; 1962, c. 623, § 15.1-199; 1973, c.513; 1991, c. 668, § 15.1-227.9; 1994, c. 714; 1997, c. 587.)