23-38.112 - Acquisition, possession, operation, and disposition of property; acceptance of grants and loans.
§ 23-38.112. Acquisition, possession, operation, and disposition of property;acceptance of grants and loans.
A. Nothing in this subsection shall limit or reduce the authority granted toa covered institution in §§ 23-38.109 and 23-38.113, which shall govern theplanning, design, construction, and implementation of capital projects andleases by covered institutions. In order to continue its mission as a publicinstitution of higher education:
1. A covered institution may continue to hold, possess, operate, and disposeof any property, real or personal, tangible or intangible, that such coveredinstitution held, possessed, or operated prior to its effective date of theinitial Management Agreement as follows:
a. If the property is real property, including land, buildings, and anyimprovements to land or buildings, and it was acquired or constructed inwhole or in part with general fund appropriations or proceeds from a generalobligation bond issue under Article X, Section 9(a) or 9(b) of theConstitution of Virginia, the covered institution (i) shall hold, possess,and operate such property in accordance with the institution's enablinglegislation, with this subchapter, and with any policies adopted by thegoverning body of the institution pursuant thereto, and (ii) shall dispose ofsuch property in accordance with general law applicable to state-ownedproperty and with the institution's enabling legislation.
b. If the property is real property, including land, buildings, and anyimprovements to land or buildings, and it was acquired or constructed either(i) entirely with nongeneral fund appropriations or proceeds from anongeneral fund revenue bond issue under Article X, Section 9(c) or 9(d) ofthe Constitution of Virginia, or (ii) entirely with funds other than fundsappropriated by the General Assembly or proceeds from a general obligationbond issue under Article X, Section 9(a) or 9(b) of the Constitution ofVirginia, the covered institution shall hold, possess, operate, and disposeof such property in accordance with the institution's enabling legislation,notwithstanding the approval requirements of § 23-77.1, with this subchapter,and with any policies adopted by the governing body of the institutionpursuant thereto.
c. If the property is personal property, the covered institution shall hold,possess, operate, and dispose of such property in accordance with theinstitution's enabling legislation, with this subchapter, and with anypolicies adopted by the governing body of the institution pursuant thereto.
2. After the effective date of the initial Management Agreement as providedin § 23-38.88, a covered institution may acquire any real property, constructimprovements thereon in accordance with § 23-38.109, and acquire any personalproperty, tangible or intangible, and hold, possess, operate, and dispose ofsuch real and personal property as follows:
a. If the property is real property, including land, buildings, andimprovements to land or buildings, and it is acquired or constructed withfunds appropriated by the General Assembly for that purpose or with proceedsfrom a general obligation bond issue under Article X, Section 9(a) or 9(b) ofthe Constitution of Virginia, the covered institution (i) shall hold,possess, and operate such property in accordance with the institution'senabling legislation, with this subchapter, and with any policies adopted bythe governing body of the institution pursuant thereto, and (ii) shalldispose of such property in accordance with general law applicable tostate-owned property and with the covered institution's enabling legislation.
b. If the property is real property, including land, buildings, andimprovements to land or buildings, and the property is acquired with anyfunds in the covered institution's possession, other than any fundsappropriated by the General Assembly or proceeds from a general obligationbond issue under Article, X, Section 9(a) or 9(b) of the Constitution ofVirginia, the institution shall hold, possess, operate, dispose of, andotherwise deal with such property, or any right, easement, estate, orinterest therein, acquired by purchase, exchange, gift, assignment, transfer,foreclosure, lease, bequest, devise, operation of law, or other means, inaccordance with the covered institution's enabling legislation,notwithstanding the approval requirements of § 23-77.1, with this subchapter,and with any policies adopted by the governing body of the institutionpursuant thereto.
c. If the property is personal property, the institution shall hold, possess,operate, and dispose of such property in accordance with the institution'senabling legislation, with this subchapter, and with any policies adopted bythe governing body of the institution pursuant thereto.
3. With the approval of the Governor or as otherwise provided by law, andconsistent with the provisions of subdivisions 1 and 2 of this subsection, acovered institution may sell, assign, encumber, mortgage, demolish, orotherwise dispose of any project or any other property, real or personal,tangible or intangible, or any right, easement, estate, or interest therein,or any deed of trust or mortgage lien interest owned by it, under its controlor custody or in its possession, and may release or relinquish any right,title, claim, lien, interest, easement, or demand however acquired, includingany equity or right of redemption in property foreclosed by it; and
4. May do any of the foregoing by public or private transaction.
B. A covered institution may accept loans, grants, contributions, or otherassistance from the federal government, the Commonwealth or any politicalsubdivision thereof, or from any other public or private source to carry outits mission as a public institution of higher education of the Commonwealthand any of the purposes of this subchapter. A covered institution may enterinto any agreement or contract regarding or relating to the acceptance, use,or repayment of any such loan, grant, contribution, or assistance, and mayenter into such other agreements with any such entity in furtherance of thepurposes of this subchapter. Counties, cities, and towns are herebyauthorized to lend or donate money or other property to a covered institutionfor any of its purposes. Any local government making the grant or loan mayrestrict the use of the grant or loan to a specific project, within orwithout that locality.
C. Notwithstanding the provisions of this chapter, no covered institutionshall take action with regard to any property, real or personal, if suchaction would be deemed to be in violation of any requirement or covenantcontained in any outstanding bonds, notes, or other evidences of indebtedness.
(2005, cc. 933, 945.)