15.2-7006 - Refunding bonds.
§ 15.2-7006. Refunding bonds.
The Authority is hereby authorized by resolution to provide for the issuanceof refunding revenue bonds with which to refund outstanding revenue bonds orany issue or series of such outstanding bonds, which refunding revenue bondsmay be issued at or before the maturity or redemption date of the bonds to berefunded, and to include different issues or series of such outstandingrevenue bonds by a single issue of refunding revenue bonds, and to issuerefunding revenue bonds to pay any redemption premium and interest to accrueand become payable on the outstanding revenue bonds being refunded to thedate of payment or redemption, and to establish reserves for such refundingrevenue bonds. Such refunding revenue bonds shall be payable solely from allor that portion of the revenues of the Authority facilities pledged to thepayment thereof in the bond resolution pursuant to which said bonds wereissued. Such refunding revenue bonds may, in the discretion of the Authority,be exchanged at par for the revenue bonds that are being refunded, or may besold at public or private sale in such manner and at such price or prices asthe Authority shall deem for the best interests of the Authority, but no suchsale shall be made at a price so low as to require the payment of interest onthe money received therefor at more than six percent per year, computed withrelation to the absolute maturity of the bonds in accordance with standardtables of bond values, excluding, however, from such computation the amountof any premium to be paid on the redemption of any bonds prior to maturity,and may be issued and delivered at any time prior to the date of redemptionor maturity date of the bonds to be refunded as the Authority determines tobe in the best interests of the Authority. The interest rate or rates onrefunding revenue bonds shall not be limited by the interest rate or ratesborne by any of the revenue bonds to be refunded thereby. The proceedsderived from the sale of refunding revenue bonds issued under this chaptershall be invested in obligations of or guaranteed by the United Statesgovernment pending the application of such proceeds to the purpose for whichsuch refunding revenue bonds have been issued, and to further secure suchrefunding revenue bonds the Authority may contract with the purchasersthereof with respect to the safekeeping and application of the proceedsthereof and the safekeeping and application of the earnings of suchinvestments. The determination of the Authority with respect to the financialsoundness and advantage of the issuance and delivery of refunding revenuebonds authorized under this chapter shall be conclusive, but nothing hereincontained shall require the holders of any outstanding revenue bonds beingrefunded to accept payment thereof otherwise than as provided in saidoutstanding bonds.
(2009, c. 471.)