{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/15.2-6409.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/15.2-6409.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/15.2-6409.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/15.2-6409.html"}],"law_id":349063,"edition_id":2,"section_id":349063,"structure_id":50025,"section_number":"15.2-6409","catch_line":"Bond issues; contesting validity of bonds","history":"1997, cc. 276, 587, \u00a7 15.1-1719; 2002, c. 691.","full_text":"A\n\nAn authority may at any time and from time to time issue bonds for any valid purpose, including the establishment of reserves and the payment of interest. In this chapter, “bonds” includes notes of any kind, interim certificates, refunding bonds, or any other evidence of obligation.\n\nB\n\nThe bonds of any issue shall be payable solely from the property or receipts of the authority, including, but not limited to:\n\n1\n\nTaxes, rents, fees, charges, or other revenues payable to the authority;\n\n2\n\nPayments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements;\n\n3\n\nInvestment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement; and\n\n4\n\nProceeds of refunding bonds.\n\nC\n\nBonds shall be authorized by resolution of an authority and may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. The bonds shall:\n\n1\n\nBe issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds or as term bonds or both, not exceeding forty years from their respective dates of issue;\n\n2\n\nBear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement;\n\n3\n\nBe payable at a time or times, in the denominations and form, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the resolution or trust agreement may provide;\n\n4\n\nBe payable in lawful money of the United States at a designated place;\n\n5\n\nBe subject to the terms of purchase, payment, redemption, refunding, or refinancing that the resolution or trust agreement provides;\n\n6\n\nBe executed by the manual or facsimile signatures of the officers of the authority designated by the authority, which signatures shall be valid at delivery even for one who has ceased to hold office; and\n\n7\n\nBe sold in the manner and upon the terms determined by the authority including private (negotiated) sale.\n\nD\n\nAny resolution or trust agreement may contain provisions which shall be a part of the contract with the holders of the bonds as to:\n\n1\n\nPledging, assigning, or directing the use, investment, or disposition of receipts of the authority or proceeds or benefits of any contract and conveying or otherwise securing any property rights;\n\n2\n\nSetting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof;\n\n3\n\nLimiting the purpose to which, or the investments in which, the proceeds of the sale of any issue of bonds may be applied and restrictions to investments of revenues or bond proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America;\n\n4\n\nLimiting the issuance of additional bonds and the terms upon which additional bonds may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds;\n\n5\n\nRefunding or refinancing outstanding bonds;\n\n6\n\nProviding a procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given;\n\n7\n\nDefining the acts or omissions which shall constitute a default in the duties of the authority to bondholders and providing the rights of or remedies for such holders in the event of a default which may include provisions restricting individual right of action by bondholders;\n\n8\n\nProviding for guarantees, pledges of property, letters of credit, or other security, or insurance for the benefit of the bondholders; and\n\n9\n\nAddressing any other matter relating to the bonds which the authority determines appropriate.\n\nE\n\nNo member of an authority, member of a board, or any person executing the bonds on behalf of an authority shall be liable personally for the bonds or subject to any personal liability by reason of the issuance of the bonds.\n\nF\n\nAn authority may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds.\n\nG\n\nA pledge by an authority of revenues as security for an issue of bonds shall be valid and binding from the time the pledge is made.\n\t\t\tThe revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract or otherwise against an authority, irrespective of whether the person has notice.\n\n\t\t\tNo resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by an authority need be filed or recorded in any public record other than the records of the authority in order to perfect the lien against third persons, regardless of any contrary provision of public general or local law.\n\nH\n\nExcept to the extent restricted by an applicable resolution or trust agreement, any holder of bonds issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws of Virginia or by any applicable resolution or trust agreement.\n\nI\n\nAn authority may issue bonds to refund any of its bonds then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may be issued in one or more series in an amount in excess of that of the bonds to be refunded.\n\nJ\n\nFor a period of thirty days after the date of the filing with the circuit court having jurisdiction over any of the political subdivisions that are members of the authority and in which the facility or any portion thereof being financed is located a certified copy of the initial resolution of the authority authorizing the issuance of bonds, any person in interest may contest the validity of the bonds, the rates, rents, fees and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility or any portion thereof being financed, the pledge of revenues pledged to payment of the bonds, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds, or any matter contained in, provided for or done or to be done pursuant to the foregoing. If such contest is not given within the thirty-day period, the authority to issue bonds, the validity of any other provision contained in the resolution, trust agreement, indenture or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds shall be conclusively presumed to have been legally taken and no court shall have authority to inquire into such matters and no such contest shall thereafter be instituted.\n\t\t\tUpon the delivery of any bonds reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds shall be conclusively presumed to be fully authorized by all the laws of the Commonwealth and to have been sold, executed and delivered by the authority in conformity with such laws, and the validity of the bonds shall not be questioned by a party plaintiff, a party defendant, the authority, or any other interested party in any court, anything in this chapter or in any other statutes to the contrary notwithstanding.\n\n","order_by":null,"text":{"0":{"id":1301059,"text":"An authority may at any time and from time to time issue bonds for any valid purpose, including the establishment of reserves and the payment of interest. In this chapter, “bonds” includes notes of any kind, interim certificates, refunding bonds, or any other evidence of obligation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1301060,"text":"The bonds of any issue shall be payable solely from the property or receipts of the authority, including, but not limited to:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":1301061,"text":"Taxes, rents, fees, charges, or other revenues payable to the authority;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":1301062,"text":"Payments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":1301063,"text":"Investment earnings from funds or accounts maintained pursuant to a bond resolution or trust agreement; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":1301064,"text":"Proceeds of refunding bonds.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":1301065,"text":"Bonds shall be authorized by resolution of an authority and may be secured by a trust agreement by and between the authority and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. The bonds shall:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"7":{"id":1301066,"text":"Be issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds or as term bonds or both, not exceeding forty years from their respective dates of issue;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":1301067,"text":"Bear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"9":{"id":1301068,"text":"Be payable at a time or times, in the denominations and form, and carry the registration and privileges as to conversion and for the replacement of mutilated, lost, or destroyed bonds as the resolution or trust agreement may provide;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"10":{"id":1301069,"text":"Be payable in lawful money of the United States at a designated place;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"11":{"id":1301070,"text":"Be subject to the terms of purchase, payment, redemption, refunding, or refinancing that the resolution or trust agreement provides;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"12":{"id":1301071,"text":"Be executed by the manual or facsimile signatures of the officers of the authority designated by the authority, which signatures shall be valid at delivery even for one who has ceased to hold office; and","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"13":{"id":1301072,"text":"Be sold in the manner and upon the terms determined by the authority including private (negotiated) sale.","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"D"},"14":{"id":1301073,"text":"Any resolution or trust agreement may contain provisions which shall be a part of the contract with the holders of the bonds as to:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C7","next_prefix":"D1"},"15":{"id":1301074,"text":"Pledging, assigning, or directing the use, investment, or disposition of receipts of the authority or proceeds or benefits of any contract and conveying or otherwise securing any property rights;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"16":{"id":1301075,"text":"Setting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition thereof;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"17":{"id":1301076,"text":"Limiting the purpose to which, or the investments in which, the proceeds of the sale of any issue of bonds may be applied and restrictions to investments of revenues or bond proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"18":{"id":1301077,"text":"Limiting the issuance of additional bonds and the terms upon which additional bonds may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"19":{"id":1301078,"text":"Refunding or refinancing outstanding bonds;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"20":{"id":1301079,"text":"Providing a procedure, if any, by which the terms of any contract with bondholders may be altered or amended and the amount of bonds the holders of which must consent thereto, and the manner in which consent shall be given;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"21":{"id":1301080,"text":"Defining the acts or omissions which shall constitute a default in the duties of the authority to bondholders and providing the rights of or remedies for such holders in the event of a default which may include provisions restricting individual right of action by bondholders;","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"22":{"id":1301081,"text":"Providing for guarantees, pledges of property, letters of credit, or other security, or insurance for the benefit of the bondholders; and","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"D9"},"23":{"id":1301082,"text":"Addressing any other matter relating to the bonds which the authority determines appropriate.","type":"section","prefixes":["D","9"],"prefix":"9","entire_prefix":"D9","prefix_anchor":"D9","level":2,"prior_prefix":"D8","next_prefix":"E"},"24":{"id":1301083,"text":"No member of an authority, member of a board, or any person executing the bonds on behalf of an authority shall be liable personally for the bonds or subject to any personal liability by reason of the issuance of the bonds.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D9","next_prefix":"F"},"25":{"id":1301084,"text":"An authority may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"26":{"id":1301085,"text":"A pledge by an authority of revenues as security for an issue of bonds shall be valid and binding from the time the pledge is made.\n\t\t\tThe revenues pledged shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding against any person having any claim of any kind in tort, contract or otherwise against an authority, irrespective of whether the person has notice.\t\t\tNo resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by an authority need be filed or recorded in any public record other than the records of the authority in order to perfect the lien against third persons, regardless of any contrary provision of public general or local law.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"27":{"id":1301086,"text":"Except to the extent restricted by an applicable resolution or trust agreement, any holder of bonds issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws of Virginia or by any applicable resolution or trust agreement.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"28":{"id":1301087,"text":"An authority may issue bonds to refund any of its bonds then outstanding, including the payment of any redemption premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of the bonds. Refunding bonds may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default and may be issued in one or more series in an amount in excess of that of the bonds to be refunded.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"29":{"id":1301088,"text":"For a period of thirty days after the date of the filing with the circuit court having jurisdiction over any of the political subdivisions that are members of the authority and in which the facility or any portion thereof being financed is located a certified copy of the initial resolution of the authority authorizing the issuance of bonds, any person in interest may contest the validity of the bonds, the rates, rents, fees and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility or any portion thereof being financed, the pledge of revenues pledged to payment of the bonds, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds, or any matter contained in, provided for or done or to be done pursuant to the foregoing. If such contest is not given within the thirty-day period, the authority to issue bonds, the validity of any other provision contained in the resolution, trust agreement, indenture or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds shall be conclusively presumed to have been legally taken and no court shall have authority to inquire into such matters and no such contest shall thereafter be instituted.\n\t\t\tUpon the delivery of any bonds reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds shall be conclusively presumed to be fully authorized by all the laws of the Commonwealth and to have been sold, executed and delivered by the authority in conformity with such laws, and the validity of the bonds shall not be questioned by a party plaintiff, a party defendant, the authority, or any other interested party in any court, anything in this chapter or in any other statutes to the contrary notwithstanding.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I"}},"ancestry":[{"id":50025,"edition_id":2,"name":"Virginia Regional Industrial Facilities Act","identifier":"64","label":"chapter","depth":3,"order_by":28,"parent_id":49964,"metadata":{"child_laws":17,"child_structures":0},"date_created":"2026-08-02 02:20:28","date_modified":"2026-08-02 12:29:55","permalink":{"id":1387229,"object_type":"structure","relational_id":50025,"identifier":"64","token":"15.2\/IV\/64","url":"\/15.2\/IV\/64\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49964,"edition_id":2,"name":"Other Governmental Entities","identifier":"IV","label":"subtitle","depth":2,"order_by":4,"parent_id":49831,"metadata":{"child_laws":721,"child_structures":68},"date_created":"2026-08-02 02:19:12","date_modified":"2026-08-02 12:29:48","permalink":{"id":1384899,"object_type":"structure","relational_id":49964,"identifier":"IV","token":"15.2\/IV","url":"\/15.2\/IV\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49831,"edition_id":2,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":46,"parent_id":null,"metadata":{"child_laws":2297,"child_structures":225},"date_created":"2026-08-02 02:16:22","date_modified":"2026-08-02 12:29:22","permalink":{"id":1378281,"object_type":"structure","relational_id":49831,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":349054,"structure_id":50025,"section_number":"15.2-6400","catch_line":"Definitions","url":"\/15.2-6400\/","token":"15.2\/IV\/64\/15.2-6400","metadata":false},{"id":349055,"structure_id":50025,"section_number":"15.2-6401","catch_line":"Findings; purpose; governmental functions","url":"\/15.2-6401\/","token":"15.2\/IV\/64\/15.2-6401","metadata":false},{"id":349056,"structure_id":50025,"section_number":"15.2-6402","catch_line":"Procedure for creation of authorities","url":"\/15.2-6402\/","token":"15.2\/IV\/64\/15.2-6402","metadata":false},{"id":349057,"structure_id":50025,"section_number":"15.2-6403","catch_line":"Board of the authority","url":"\/15.2-6403\/","token":"15.2\/IV\/64\/15.2-6403","metadata":false},{"id":349058,"structure_id":50025,"section_number":"15.2-6404","catch_line":"Office of authority; title to property","url":"\/15.2-6404\/","token":"15.2\/IV\/64\/15.2-6404","metadata":false},{"id":349059,"structure_id":50025,"section_number":"15.2-6405","catch_line":"Powers of the authority","url":"\/15.2-6405\/","token":"15.2\/IV\/64\/15.2-6405","metadata":false},{"id":349060,"structure_id":50025,"section_number":"15.2-6406","catch_line":"Donations to authority; remittance of tax revenue","url":"\/15.2-6406\/","token":"15.2\/IV\/64\/15.2-6406","metadata":false},{"id":349061,"structure_id":50025,"section_number":"15.2-6407","catch_line":"Revenue sharing agreements","url":"\/15.2-6407\/","token":"15.2\/IV\/64\/15.2-6407","metadata":{"court_decisions":""}},{"id":349062,"structure_id":50025,"section_number":"15.2-6408","catch_line":"Applicability of land use regulations","url":"\/15.2-6408\/","token":"15.2\/IV\/64\/15.2-6408","metadata":false},{"id":349063,"structure_id":50025,"section_number":"15.2-6409","catch_line":"Bond issues; contesting validity of bonds","url":"\/15.2-6409\/","token":"15.2\/IV\/64\/15.2-6409","metadata":false},{"id":349065,"structure_id":50025,"section_number":"15.2-6410","catch_line":"Investments in bonds","url":"\/15.2-6410\/","token":"15.2\/IV\/64\/15.2-6410","metadata":false},{"id":349066,"structure_id":50025,"section_number":"15.2-6411","catch_line":"Bonds exempt from taxation","url":"\/15.2-6411\/","token":"15.2\/IV\/64\/15.2-6411","metadata":false},{"id":349067,"structure_id":50025,"section_number":"15.2-6412","catch_line":"Tax revenues of the Commonwealth or any other political subdivision not pledged","url":"\/15.2-6412\/","token":"15.2\/IV\/64\/15.2-6412","metadata":false},{"id":349068,"structure_id":50025,"section_number":"15.2-6413","catch_line":"Forms of accounts and records; audit of same","url":"\/15.2-6413\/","token":"15.2\/IV\/64\/15.2-6413","metadata":false},{"id":349069,"structure_id":50025,"section_number":"15.2-6414","catch_line":"Tort liability","url":"\/15.2-6414\/","token":"15.2\/IV\/64\/15.2-6414","metadata":false},{"id":349070,"structure_id":50025,"section_number":"15.2-6415","catch_line":"Dissolution of authority","url":"\/15.2-6415\/","token":"15.2\/IV\/64\/15.2-6415","metadata":false},{"id":349071,"structure_id":50025,"section_number":"15.2-6416","catch_line":"Chapter liberally construed","url":"\/15.2-6416\/","token":"15.2\/IV\/64\/15.2-6416","metadata":false}],"previous_section":{"id":349062,"structure_id":50025,"section_number":"15.2-6408","catch_line":"Applicability of land use regulations","url":"\/15.2-6408\/","token":"15.2\/IV\/64\/15.2-6408","metadata":false},"next_section":{"id":349065,"structure_id":50025,"section_number":"15.2-6410","catch_line":"Investments in bonds","url":"\/15.2-6410\/","token":"15.2\/IV\/64\/15.2-6410","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-6409\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapters 276<\/a> and 587<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2002, chapter 691<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1387267,"object_type":"law","relational_id":349063,"identifier":"15.2-6409","token":"15.2\/IV\/64\/15.2-6409","url":"\/15.2-6409\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/15.2-6409\/","token":"15.2\/IV\/64\/15.2-6409","dublin_core":{"Title":"Bond issues; contesting validity of bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-6409","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> An authority<\/span> may at any time and from time to time issue<\/span> bonds<\/span> for any valid purpose, including the establishment of reserves and the payment of interest. In this chapter, “bonds<\/span>” includes notes of any kind, interim certificates, refunding bonds<\/span>, or any other evidence<\/span> of obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The bonds<\/span> of any issue<\/span> shall be payable solely from the property or receipts of the authority<\/span>, including, but not limited to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Taxes, rents, fees, charges, or other revenues<\/span> payable to the authority<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Payments by financial institutions, insurance companies, or others pursuant to letters or lines of credit, policies of insurance, or purchase agreements; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Investment earnings from funds or accounts maintained pursuant to a bond<\/span> resolution or trust agreement; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Proceeds of refunding bonds<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Bonds<\/span> shall be authorized by resolution of an authority<\/span> and may be secured by a trust agreement by and between the authority<\/span> and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. The bonds<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Be issued at, above, or below par value, for cash or other valuable consideration, and mature at a time or times, whether as serial bonds<\/span> or as term bonds<\/span> or both, not exceeding forty years from their respective dates of issue<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Bear interest at the fixed or variable rate or rates determined by the method provided in the resolution or trust agreement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Be payable at a time or times, in the denominations and form, and carry the registration and privileges<\/span> as to conversion and for the replacement of mutilated, lost, or destroyed bonds<\/span> as the resolution or trust agreement may provide; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Be payable in lawful money of the United States at a designated place; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Be subject to the terms of purchase, payment, redemption<\/span>, refunding, or refinancing that the resolution or trust agreement provides; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Be executed by the manual or facsimile signatures of the officers of the authority<\/span> designated by the authority<\/span>, which signatures shall be valid at delivery even for one who has ceased to hold office; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Be sold in the manner and upon the terms determined by the authority<\/span> including private (negotiated) sale. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any resolution or trust agreement may contain provisions which shall be a part of the contract<\/span> with the holders of the bonds<\/span> as to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Pledging, assigning, or directing the use, investment, or disposition<\/span> of receipts of the authority<\/span> or proceeds or benefits of any contract<\/span> and conveying or otherwise securing any property rights; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Setting aside loan funding deposits, debt service reserves, capitalized interest accounts, cost of issuance accounts and sinking funds, and the regulation, investment, and disposition<\/span> thereof; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Limiting the purpose to which, or the investments in which, the proceeds of the sale of any issue<\/span> of bonds<\/span> may be applied and restrictions to investments of revenues<\/span> or bond<\/span> proceeds in government obligations for which principal and interest are unconditionally guaranteed by the United States of America; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Limiting the issuance of additional bonds<\/span> and the terms upon which additional bonds<\/span> may be issued and secured and may rank on a parity with, or be subordinate or superior to, other bonds<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Refunding or refinancing outstanding bonds<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Providing a procedure, if any, by which the terms of any contract<\/span> with bondholders may be altered or amended and the amount of bonds<\/span> the holders of which must consent thereto, and the manner in which consent shall be given; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Defining the acts or omissions which shall constitute a default<\/span> in the duties of the authority<\/span> to bondholders and providing the rights of or remedies for such holders in the event of a default<\/span> which may include provisions restricting individual right of action by bondholders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Providing for guarantees, pledges of property, letters of credit, or other security, or insurance for the benefit of the bondholders; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Addressing any other matter relating to the bonds<\/span> which the authority<\/span> determines appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No member of an authority<\/span>, member of a board<\/span>, or any person executing the bonds<\/span> on behalf of an authority<\/span> shall be liable personally for the bonds<\/span> or subject to any personal liability by reason of the issuance of the bonds<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> An authority<\/span> may enter into agreements with agents, banks, insurers, or others for the purpose of enhancing the marketability of, or as security for, its bonds<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A pledge by an authority<\/span> of revenues<\/span> as security for an issue<\/span> of bonds<\/span> shall be valid and binding from the time the pledge is made.\n\t\t\tThe revenues<\/span> pledged shall immediately be subject to the lien<\/span> of the pledge without any physical delivery or further act, and the lien<\/span> of any pledge shall be valid and binding against any person having any claim of any kind in tort<\/span>, contract<\/span> or otherwise against an authority<\/span>, irrespective of whether the person has notice.

\t\t\tNo resolution, trust agreement or financing statement, continuation statement, or other instrument adopted or entered into by an authority<\/span> need be filed or recorded in any public record other than the records of the authority<\/span> in order<\/span> to perfect the lien<\/span> against third persons, regardless of any contrary provision of public general or local law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Except to the extent restricted by an applicable resolution or trust agreement, any holder of bonds<\/span> issued under this chapter or a trustee acting under a trust agreement entered into under this chapter, may, by any suitable form of legal proceedings, protect and enforce any rights granted under the laws<\/span> of Virginia or by any applicable resolution or trust agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> An authority<\/span> may issue<\/span> bonds<\/span> to refund any of its bonds<\/span> then outstanding, including the payment of any redemption<\/span> premium and any interest accrued or to accrue to the earliest or any subsequent date of redemption<\/span>, purchase or maturity of the bonds<\/span>. Refunding bonds<\/span> may be issued for the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, for alleviating impending or actual default<\/span> and may be issued in one or more series in an amount in excess of that of the bonds<\/span> to be refunded. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> For a period of thirty days after the date of the filing with the circuit<\/span> court<\/span> having jurisdiction<\/span> over any of the political subdivisions that are members of the authority<\/span> and in which the facility<\/span> or any portion thereof being financed is located a certified copy of the initial resolution of the authority<\/span> authorizing the issuance of bonds<\/span>, any person in interest may contest the validity of the bonds<\/span>, the rates, rents, fees and other charges for the services and facilities furnished by, for the use of, or in connection with, the facility<\/span> or any portion thereof being financed, the pledge of revenues<\/span> pledged to payment of the bonds<\/span>, any provisions that may be recited in any resolution, trust agreement, indenture or other instrument authorizing the issuance of bonds<\/span>, or any matter contained in, provided for or done or to be done pursuant to the foregoing. If such contest is not given within the thirty-day period, the authority<\/span> to issue<\/span> bonds<\/span>, the validity of any other provision contained in the resolution, trust agreement, indenture or other instrument, and all proceedings in connection with the authorization and the issuance of the bonds<\/span> shall be conclusively presumed to have been legally taken and no court<\/span> shall have authority<\/span> to inquire into such matters and no such contest shall thereafter be instituted.\n\t\t\tUpon the delivery of any bonds<\/span> reciting that they are issued pursuant to this chapter and a resolution or resolutions adopted under this chapter, the bonds<\/span> shall be conclusively presumed to be fully authorized by all the laws<\/span> of the Commonwealth and to have been sold, executed and delivered by the authority<\/span> in conformity with such laws<\/span>, and the validity of the bonds<\/span> shall not be questioned by a party<\/span> plaintiff<\/span>, a party<\/span> defendant<\/span>, the authority<\/span>, or any other interested party<\/span> in any court<\/span>, anything in this chapter or in any other statutes<\/span> to the contrary notwithstanding. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOND ISSUES; CONTESTING VALIDITY OF BONDS (\u00a7 15.2-6409)\n\nA. An authority may at any time and from time to time issue bonds for any valid\npurpose, including the establishment of reserves and the payment of interest. In\nthis chapter, “bonds” includes notes of any kind, interim\ncertificates, refunding bonds, or any other evidence of obligation.\n\nB. The bonds of any issue shall be payable solely from the property or receipts\nof the authority, including, but not limited to:\n\n 1. Taxes, rents, fees, charges, or other revenues payable to the authority;\n\n 2. Payments by financial institutions, insurance companies, or others pursuant\n to letters or lines of credit, policies of insurance, or purchase agreements;\n\n 3. Investment earnings from funds or accounts maintained pursuant to a bond\n resolution or trust agreement; and\n\n 4. Proceeds of refunding bonds.\n\nC. Bonds shall be authorized by resolution of an authority and may be secured by\na trust agreement by and between the authority and a corporate trustee or\ntrustees, which may be any trust company or bank having the powers of a trust\ncompany within or without the Commonwealth. The bonds shall:\n\n 1. Be issued at, above, or below par value, for cash or other valuable\n consideration, and mature at a time or times, whether as serial bonds or as\n term bonds or both, not exceeding forty years from their respective dates of\n issue;\n\n 2. Bear interest at the fixed or variable rate or rates determined by the\n method provided in the resolution or trust agreement;\n\n 3. Be payable at a time or times, in the denominations and form, and carry the\n registration and privileges as to conversion and for the replacement of\n mutilated, lost, or destroyed bonds as the resolution or trust agreement may\n provide;\n\n 4. Be payable in lawful money of the United States at a designated place;\n\n 5. Be subject to the terms of purchase, payment, redemption, refunding, or\n refinancing that the resolution or trust agreement provides;\n\n 6. Be executed by the manual or facsimile signatures of the officers of the\n authority designated by the authority, which signatures shall be valid at\n delivery even for one who has ceased to hold office; and\n\n 7. Be sold in the manner and upon the terms determined by the authority\n including private (negotiated) sale.\n\nD. Any resolution or trust agreement may contain provisions which shall be a\npart of the contract with the holders of the bonds as to:\n\n 1. Pledging, assigning, or directing the use, investment, or disposition of\n receipts of the authority or proceeds or benefits of any contract and\n conveying or otherwise securing any property rights;\n\n 2. Setting aside loan funding deposits, debt service reserves, capitalized\n interest accounts, cost of issuance accounts and sinking funds, and the\n regulation, investment, and disposition thereof;\n\n 3. Limiting the purpose to which, or the investments in which, the proceeds of\n the sale of any issue of bonds may be applied and restrictions to investments\n of revenues or bond proceeds in government obligations for which principal and\n interest are unconditionally guaranteed by the United States of America;\n\n 4. Limiting the issuance of additional bonds and the terms upon which\n additional bonds may be issued and secured and may rank on a parity with, or\n be subordinate or superior to, other bonds;\n\n 5. Refunding or refinancing outstanding bonds;\n\n 6. Providing a procedure, if any, by which the terms of any contract with\n bondholders may be altered or amended and the amount of bonds the holders of\n which must consent thereto, and the manner in which consent shall be given;\n\n 7. Defining the acts or omissions which shall constitute a default in the\n duties of the authority to bondholders and providing the rights of or remedies\n for such holders in the event of a default which may include provisions\n restricting individual right of action by bondholders;\n\n 8. Providing for guarantees, pledges of property, letters of credit, or other\n security, or insurance for the benefit of the bondholders; and\n\n 9. Addressing any other matter relating to the bonds which the authority\n determines appropriate.\n\nE. No member of an authority, member of a board, or any person executing the\nbonds on behalf of an authority shall be liable personally for the bonds or\nsubject to any personal liability by reason of the issuance of the bonds.\n\nF. An authority may enter into agreements with agents, banks, insurers, or\nothers for the purpose of enhancing the marketability of, or as security for,\nits bonds.\n\nG. A pledge by an authority of revenues as security for an issue of bonds shall\nbe valid and binding from the time the pledge is made.\n\t\t\tThe revenues pledged shall immediately be subject to the lien of the pledge\nwithout any physical delivery or further act, and the lien of any pledge shall\nbe valid and binding against any person having any claim of any kind in tort,\ncontract or otherwise against an authority, irrespective of whether the person\nhas notice.\t\t\tNo resolution, trust agreement or financing statement,\ncontinuation statement, or other instrument adopted or entered into by an\nauthority need be filed or recorded in any public record other than the records\nof the authority in order to perfect the lien against third persons, regardless\nof any contrary provision of public general or local law.\n\nH. Except to the extent restricted by an applicable resolution or trust\nagreement, any holder of bonds issued under this chapter or a trustee acting\nunder a trust agreement entered into under this chapter, may, by any suitable\nform of legal proceedings, protect and enforce any rights granted under the laws\nof Virginia or by any applicable resolution or trust agreement.\n\nI. An authority may issue bonds to refund any of its bonds then outstanding,\nincluding the payment of any redemption premium and any interest accrued or to\naccrue to the earliest or any subsequent date of redemption, purchase or\nmaturity of the bonds. Refunding bonds may be issued for the public purposes of\nrealizing savings in the effective costs of debt service, directly or through a\ndebt restructuring, for alleviating impending or actual default and may be\nissued in one or more series in an amount in excess of that of the bonds to be\nrefunded.\n\nJ. For a period of thirty days after the date of the filing with the circuit\ncourt having jurisdiction over any of the political subdivisions that are\nmembers of the authority and in which the facility or any portion thereof being\nfinanced is located a certified copy of the initial resolution of the authority\nauthorizing the issuance of bonds, any person in interest may contest the\nvalidity of the bonds, the rates, rents, fees and other charges for the services\nand facilities furnished by, for the use of, or in connection with, the facility\nor any portion thereof being financed, the pledge of revenues pledged to payment\nof the bonds, any provisions that may be recited in any resolution, trust\nagreement, indenture or other instrument authorizing the issuance of bonds, or\nany matter contained in, provided for or done or to be done pursuant to the\nforegoing. If such contest is not given within the thirty-day period, the\nauthority to issue bonds, the validity of any other provision contained in the\nresolution, trust agreement, indenture or other instrument, and all proceedings\nin connection with the authorization and the issuance of the bonds shall be\nconclusively presumed to have been legally taken and no court shall have\nauthority to inquire into such matters and no such contest shall thereafter be\ninstituted.\n\t\t\tUpon the delivery of any bonds reciting that they are issued pursuant to this\nchapter and a resolution or resolutions adopted under this chapter, the bonds\nshall be conclusively presumed to be fully authorized by all the laws of the\nCommonwealth and to have been sold, executed and delivered by the authority in\nconformity with such laws, and the validity of the bonds shall not be questioned\nby a party plaintiff, a party defendant, the authority, or any other interested\nparty in any court, anything in this chapter or in any other statutes to the\ncontrary notwithstanding.\n\nHISTORY: 1997, cc. 276, 587, \u00a7 15.1-1719; 2002, c. 691.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}