                                 CODE OF VIRGINIA

LOANS TO LOCAL GOVERNMENTS (§ 10.1-603.33)

Except as otherwise provided in this article, moneys in the Fund shall be used
to make loans to local governments to finance or refinance the cost of any
project. The local governments to which loans are to be made, the purposes of
the loan, the amount of each such loan, the interest rate thereon, and the
repayment terms thereof, which may vary between loan recipients, shall be
designated in writing by the Department to the Authority following consultation
with the Authority. No loan from the Fund shall exceed the total cost of the
project to be financed or the outstanding principal amount of the indebtedness
to be refinanced plus reasonable financing expenses.		Except as set forth in
this section, the Authority shall determine the terms and conditions of any loan
from the Fund, which may vary between loan recipients. Each loan shall be
evidenced by appropriate bonds or notes of the local government payable to the
Fund. The bonds or notes shall have been duly authorized by the local government
and executed by its authorized legal representatives. The Authority is
authorized to require in connection with any loan from the Fund such documents,
instruments, certificates, legal opinions, and other information as it may deem
necessary or convenient. In addition to any other terms or conditions that the
Authority may establish, the Authority may require, as a condition to making any
loan from the Fund, that the local government receiving the loan covenant to
perform any of the following:

1. Establish and collect rents, rates, fees, and charges to produce revenue
sufficient to pay all or a specified portion of (i) the costs of operation,
maintenance, replacement, renewal, and repairs of the project; (ii) any
outstanding indebtedness incurred for the purposes of the project, including the
principal of and premium, if any, and interest on the loan from the Fund to the
local government; and (iii) any amounts necessary to create and maintain any
required reserve, including any rate stabilization fund deemed necessary or
appropriate by the Authority to offset the need, in whole or part, for future
increases in rents, rates, fees, or charges;

2. With respect to local governments, levy and collect ad valorem taxes on all
property within the jurisdiction of the local government subject to local
taxation sufficient to pay the principal of and premium, if any, and interest on
the loan from the Fund to the local government;

3. Create and maintain a special fund or funds for the payment of the principal
of and premium, if any, and interest on the loan from the Fund to the local
government and any other amounts becoming due under any agreement entered into
in connection with the loan, or for the operation, maintenance, repair, or
replacement of the project or any portions thereof or other property of the
local government, and deposit into any fund or funds amounts sufficient to make
any payments on the loan as they become due and payable;

4. Create and maintain other special funds as required by the Authority; and

5. Perform other acts, including the conveyance of, or the granting of liens on
or security interests in, real and personal property, together with all rights,
title, and interest therein, to the Fund, or take other actions as may be deemed
necessary or desirable by the Authority to secure payment of the principal of
and premium, if any, and interest on the loan from the Fund and to provide for
the remedies of the Fund in the event of any default in the payment of the loan,
including, without limitation, any of the following:
			a. The procurement of insurance, guarantees, letters of credit, and other
forms of collateral, security, liquidity arrangements, or credit supports for
the loan from any source, public or private, and the payment therefor of
premiums, fees, or other charges;			b. The combination of one or more projects,
or the combination of one or more projects with one or more other undertakings,
facilities, utilities, or systems, for the purpose of operations and financing,
and the pledging of the revenues from such combined projects, undertakings,
facilities, utilities, and systems to secure the loan from the Fund made in
connection with such combination or any part or parts thereof;			c. The
maintenance, replacement, renewal, and repair of the project; and			d. The
procurement of casualty and liability insurance.			All local governments
borrowing money from the Fund are authorized to perform any acts, take any
action, adopt any proceedings, and make and carry out any contracts that are
contemplated by this article. Such contracts need not be identical among all
local governments but may be structured as determined by the Authority according
to the needs of the contracting local governments and the Fund.			Subject to the
rights, if any, of the registered owners of any of the bonds of the Authority,
the Authority may consent to and approve any modification in the terms of any
loan subject to guidelines adopted by the Department.

HISTORY: 2022, cc. 739, 782.