15.2-6638 - Authority to issue bonds.
§ 15.2-6638. Authority to issue bonds.
The Authority shall have the power to issue bonds from time to time in itsdiscretion, for any of its purposes, including the payment of all or any partof the cost of Authority facilities and including the payment or retirementof bonds previously issued by it. The Authority may issue such types of bondsas it may determine, including (without limiting the generality of theforegoing) bonds payable, both as to principal and interest: (i) from itsrevenues and receipts generally and (ii) exclusively from the revenues andreceipts of certain designated facilities or loans whether or not they arefinanced in whole or in part from the proceeds of such bonds. Any such bondsmay be additionally secured by a pledge of any grant or contribution from aparticipating political subdivision, the Commonwealth, or any politicalsubdivision, agency, or instrumentality thereof, any federal agency or anyunit, private corporation, co-partnership, association, or individual, assuch participating political subdivision, or other entities, may beauthorized to make under general law or by pledge of any income or revenuesof the Authority or by mortgage or encumbrance of any property or facilitiesof the Authority. Unless otherwise provided in the proceeding authorizing theissuance of the bonds, or in the trust indenture securing the same, all bondsshall be payable solely and exclusively from the revenues and receipts of aparticular facility or loan. Bonds may be executed and delivered by theAuthority at any time and from time to time may be in such form anddenominations and of such terms and maturities, may be in registered orbearer form either as to principal or interest or both, may be payable insuch installments and at such time or times not exceeding 40 years from thedate thereof, may be payable at such place or places whether within orwithout the Commonwealth, may bear interest at such rate or rates, may bepayable at such time or times and at such places, may be evidenced in suchmanner, and may contain such provisions not inconsistent herewith, all asshall be provided and specified by the board of directors in authorizing eachparticular bond issue.
If deemed advisable by the board of directors, there may be retained in theproceedings under which any bonds of the Authority are authorized to beissued an option to redeem all or any part thereof as may be specified insuch proceedings, at such price or prices and after such notice or noticesand on such terms and conditions as may be set forth in such proceedings andas may be briefly recited on the face of the bonds, but nothing hereincontained shall be construed to confer on the Authority any right or optionto redeem any bonds except as may be provided in the proceedings under whichthey shall be issued. Any bonds of the Authority may be sold at public orprivate sale in such manner and from time to time as may be determined by theboard of directors of the Authority to be most advantageous, and theAuthority may pay all costs, premiums, and commissions that its board ofdirectors may deem necessary or advantageous in connection with the issuancethereof. Issuance by the Authority of one or more series of bonds for one ormore purposes shall not preclude it from issuing other bonds in connectionwith the same facility or any other facility, but the proceedings whereunderany subsequent bonds may be issued shall recognize and protect any priorpledge or mortgage made for any prior issue of bonds. Any bonds of theAuthority at any time outstanding may from time to time be refunded by theAuthority by the issuance of its refunding bonds in such amount as the boardof directors may deem necessary, but not exceeding an amount sufficient torefund the principal of the bonds so to be refunded, together with any unpaidinterest thereon and any costs, premiums, or commissions necessary to be paidin connection therewith. Any such refunding may be effected whether the bondsto be refunded shall have then matured or shall thereafter mature, either bysale of the refunding bonds and the application of the proceeds thereof tothe payment of the bonds to be refunded thereby, or by the exchange of therefunding bonds for the bonds to be refunded thereby, with the consent of theholders of the bonds so to be refunded, and regardless of whether or not thebonds to be refunded were issued in connection with the same facilities orseparate facilities, and regardless of whether or not the bonds proposed tobe refunded shall be payable on the same date or on different dates or shallbe due serially or otherwise.
All bonds shall be signed by the chairman or vice-chairman of the Authorityor shall bear his facsimile signature, and the corporate seal of theAuthority or a facsimile thereof shall be impressed or imprinted thereon andattested by the signature of the secretary (or the secretary-treasurer) orthe assistant secretary (or assistant secretary-treasurer) of the Authorityor shall bear his facsimile signature, and any coupons attached thereto shallbear the facsimile signature of said chairman. In case any officer whosesignature or a facsimile of whose signature shall appear on any bonds orcoupons shall cease to be an officer before delivery of such bonds, suchsignature, or such facsimile, shall nevertheless be valid and sufficient forall purposes the same as if he had remained in office until such delivery.When the signatures of both the chairman or the vice-chairman and thesecretary (or the secretary-treasurer) or the assistant secretary (or theassistant secretary-treasurer) are facsimiles, the bonds must beauthenticated by a corporate trustee or other authenticating agent approvedby the Authority.
If the proceeds derived from a particular bond issue, due to error ofestimates or otherwise, shall be less than the cost of the Authorityfacilities for which such bonds were issued, additional bonds may in likemanner be issued to provide the amount of such deficit, and, unless otherwiseprovided in the proceedings authorizing the issuance of the bonds of suchissue or in the trust indenture securing the same, shall be deemed to be ofthe same issue and shall be entitled to payment from the same fund withoutpreference or priority of the bonds of the first issue. If the proceeds ofthe bonds of any issue shall exceed such cost, the surplus may be depositedto the credit of the sinking fund for such bonds or may be applied to thepayment of the cost of any additions, improvements, or enlargements of theAuthority facilities for which such bonds shall have been issued.
Prior to the preparation of definitive bonds, the Authority may, under likerestrictions, issue interim receipts or temporary bonds with or withoutcoupons, exchangeable for definitive bonds when such bonds shall have beenexecuted and are available for delivery. The Authority may also provide forthe replacement of any bonds that shall become mutilated or shall bedestroyed or lost. Bonds may be issued under the provisions of this actwithout obtaining the consent of any department, division, commission, board,bureau, or agency of the Commonwealth, and without any other proceedings orthe happening of any other conditions or things other than those proceedings,conditions, or things that are specifically required by this act; provided,however, that nothing contained in this act shall be construed as affectingthe powers and duties now conferred by law upon the State CorporationCommission.
All bonds issued under the provisions of this act shall have and are herebydeclared to have all the qualities and incidents of and shall be and arehereby made negotiable instruments under the Uniform Commercial Code ofVirginia (§ 8.1A-101 et seq.), subject only to provisions respectingregistration of the bonds.
In addition to all other powers granted to the Authority by this act, theAuthority is authorized to provide for the issuance, from time to time, ofnotes or other obligations of the Authority for any of its authorizedpurposes. All of the provisions of this act that relate to bonds or revenuebonds shall apply to such notes or other obligations insofar as suchprovisions may be appropriate.
(2005, c. 842.)