23-38.108 - Power to issue bonds, notes or other obligations.
§ 23-38.108. Power to issue bonds, notes or other obligations.
A. Notwithstanding the provisions of § 23-29, which shall be inapplicable tothe exercise by a covered institution of the authority granted in thisarticle, a covered institution may issue bonds, notes, or other obligationsfrom time to time for any purpose that is consistent with its institutionalmission, including, without limitation, to finance or refinance any project,to appropriately manage operational cash flows, to provide for short termfinancing, to refund bonds, notes or other obligations issued therefore by oron behalf of such institution, or otherwise, including bonds, notes, or otherobligations or obligations not then subject to redemption, and may guarantee,assume or otherwise agree to pay, in whole or in part, indebtedness issued bysuch institution or any affiliated entity for managing operational cash flowsor resulting in the acquisition or construction of facilities for the benefitof such institution, or the refinancing thereof; provided, however, thatnothing in this subchapter shall preclude a covered institution fromparticipation in any financing program or bond issue established andimplemented by the Commonwealth, or any agency thereof, including, withoutlimitation, any financing program or bond issue under Article X, Section 9(b)or 9(c) of the Constitution of Virginia, or any financing program or bondissue under Article X Section 9(d) of the Constitution of Virginia undertakenby the Treasury Board, the Virginia College Building Authority or theVirginia Public Building Authority, if such institution is otherwise eligiblefor and approved for such participation and is otherwise able to fulfill anyrequirements that may be imposed upon it in relation to such participation.
B. Notwithstanding Article 8 (§ 2.2-2415 et seq.) of Chapter 24 of Title 2.2,Chapter 3 (§ 23-14 et seq.) of Title 23, and § 23-65, covered institutionsmay issue bonds, notes, or other obligations consistent with debt capacityand management policies and guidelines established by its Board of Visitorswithout obtaining the consent of any legislative body, elected official,commission, board, bureau, or agency of the Commonwealth or of any politicalsubdivision, and without any proceedings or conditions other than thosespecifically required by this subchapter. Bonds, notes, or other obligationsmay be issued for the benefit of covered institutions without the approvalrequired by the provisions of Article 8 (§ 2.2-2415 et seq.) of Chapter 24 ofTitle 2.2. No bonds, notes, or other obligations issued under the authorityof this article shall be subject to any review or approval procedure, rules,regulations, or procedures adopted pursuant to Chapter 3 (§ 23-14 et seq.) ofTitle 23.
C. A covered institution may issue such types of bonds, notes, or otherobligations as it may determine are appropriate consistent with debt capacityand management policies and guidelines established by its Board of Visitors,including, without limitation, bonds, notes or other obligations payable asto principal and interest from any one or more of the following sources: (i)its revenues generally; (ii) income and revenues derived from the operation,sale, or lease of a particular project or projects, whether or not they arefinanced or refinanced from the proceeds of such bonds, notes, or otherobligations; (iii) funds realized from the enforcement of security interestsor other liens or obligations securing such bonds, notes, or otherobligations; (iv) proceeds from the sale of bonds, notes, or otherobligations; (v) payments under letters of credit, policies of municipal bondinsurance, guarantees, or other credit enhancements; (vi) any reserve orsinking funds created to secure such payment; (vii) accounts receivable ofsuch institution; or (viii) other available funds of such institution.
D. Any bonds, notes, or other obligations may be additionally supported byany grant, contribution, or appropriation from a participating politicalsubdivision, the covered institution, the Commonwealth or any politicalsubdivision, agency, or instrumentality thereof, any federal agency or anyunit, private corporation, partnership, association, or individual.
E. Bonds, notes, or other obligations of a covered institution are declaredto be for an essential public and governmental purpose.
F. It shall be lawful for any bank or trust company within or without theCommonwealth to serve as depository of the proceeds of bonds, notes, or otherobligations or of other revenues of a covered institution and to furnishindemnifying bonds, notes, or other obligations or to pledge such securitiesas may be required by such institution, provided that any such deposits shallbe collateralized in accordance with the Security for Public Deposits Act (§2.2-4400 et seq.) in the case of a bank or savings institution or inaccordance with the Trust Subsidiary Act (§ 6.1-32.1 et seq.) in the case ofa trust company.
(2005, cc. 933, 945.)