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2003 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 15.2-4908 of the Code of Virginia is amended and reenacted as follows:
§ 15.2-4908. Issuance of bonds, notes and other obligations of authority.
A. Subject to the limitations of Chapter 50 (§ 15.2-5000 et seq.) of this
title, the authority may issue bonds from time to time in its discretion, for any of
its purposes, including the payment of all or any part of the cost of authority
facilities and including the payment or retirement of bonds previously issued
by it. All bonds issued by the authority shall be payable solely from the
revenues and receipts derived from the leasing or sale by the authority of its
facilities or any part thereof or from payments received by the authority in
connection with its loans, and the authority may issue such types of bonds as
it may determine, including, without limiting the generality of the foregoing,
bonds payable, both as to principal and interest: (i) from its revenues and
receipts generally; (ii) exclusively from the revenues and receipts of a
particular facility or loan; or (iii) exclusively from the revenues and
receipts of certain designated facilities or loans whether or not they are
financed in whole or in part from the proceeds of such bonds. Unless otherwise
provided in the proceeding authorizing the issuance of the bonds, or in the
trust indenture securing the bonds, all bonds shall be payable solely and
exclusively from the revenues and receipts of a particular facility or loan.
Bonds may be executed and delivered by the authority at any time and from time
to time, may be in such form and denominations and of such terms and
maturities, may be in registered or bearer form either as to principal or
interest or both, may be payable in such installments and at such time or times
not exceeding forty 40 years from the date thereof, may be payable at such
place or places whether within or outside the Commonwealth, may bear interest
at such rate or rates, may be payable at such time or times, may be evidenced
in such manner, and may contain such provisions not inconsistent herewith, all
as shall be provided and specified determined by the board of directors in
authorizing each particular bond issue. If deemed advisable by the board of
directors, there may be retained in the proceedings under which any bonds of the
authority are authorized to be issued an option to redeem all or any part
thereof as may be specified in such proceedings, at such price or prices
and after such notice or notices and on such terms and conditions as may be set
forth in such proceedings determined by the board of directors and as may be
briefly recited on the face of the bonds, but nothing herein contained shall be
construed to confer on the authority any right or option to redeem any bonds
except as may be provided in the proceedings under which they shall be issued.
Any bonds of the authority may be sold at public or private sale in such manner
and from time to time as may be determined by the board of directors of the
authority to be most advantageous, and the authority may pay all costs,
premiums and commissions which its board of directors may deem necessary or
advantageous in connection with the issuance thereof. Issuance by the authority
of one or more series of bonds for one or more purposes shall not preclude it
from issuing other bonds in connection with the same facility or any other
facility, but the proceedings whereunder any subsequent bonds may be issued
shall recognize and protect any prior pledge or mortgage made for any prior
issue of bonds. Any bonds of the authority at any time outstanding may from
time to time be refunded by the authority by the issuance of its refunding
bonds in such amount as the board of directors may deem necessary, but not
exceeding an amount sufficient to refund the principal of the bonds so to be
refunded, together with any unpaid interest thereon and any costs, premiums or
commissions necessary to be paid in connection therewith. Any such refunding
may be effected whether the bonds to be refunded shall have then matured or
shall thereafter mature, either by sale of the refunding bonds and the
application of the proceeds thereof to the payment of the bonds to be refunded
thereby, or by the exchange of the refunding bonds for the bonds to be refunded
thereby, with the consent of the holders of the bonds so to be refunded, and
regardless of whether the bonds to be refunded were issued in connection with
the same facilities or separate facilities, and regardless of whether the bonds
proposed to be refunded are payable on the same date or on different dates or
are due serially or otherwise. The determination of the form, denominations,
maturities, redemption provisions, places of payment, interest rate or rates,
payment installations, dates and all other terms and provisions of bonds as
authorized in this section may be made by the board of directors in such manner
as the board may provide, including the determination by reference to indices
and formulas or by agents designated by the board of directors under guidelines
established by it.
B. All bonds shall be signed by the chairman or vice chairman of the authority or shall bear his facsimile signature, and the corporate seal of the authority or a facsimile thereof shall be impressed or imprinted thereon and attested by the signature of the secretary (or the secretary-treasurer) or the assistant secretary (or assistant secretary-treasurer) of the authority or shall bear his facsimile signature, and any coupons attached thereto shall bear the facsimile signature of the chairman. In case any officer whose signature or a facsimile signature appears on any bonds or coupons ceases to be an officer before delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. When the signatures of both the chairman or the vice chairman and the secretary (or the secretary-treasurer) or the assistant secretary (or the assistant secretary-treasurer) are facsimiles, the bonds shall be authenticated by a corporate trustee or other authenticating agent approved by the authority.
C. If the proceeds derived from a particular bond issue, due to error of estimates or otherwise, are less than the cost of the authority facilities for which such bonds were issued, additional bonds may in like manner be issued to provide the amount of such deficit and, unless otherwise provided in the proceedings authorizing the issuance of the bonds of such issue or in the trust indenture securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds of the first issue. If the proceeds of the bonds of any issue shall exceed such cost, the surplus may be deposited to the credit of the sinking fund for such bonds or may be applied to the payment of the cost of any additions, improvements or enlargements of the authority facilities for which such bonds shall have been issued.
D. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which are mutilated, destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the Commonwealth, and without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter; however, nothing contained in this chapter shall be construed as affecting the powers and duties now conferred by law upon the State Corporation Commission.
E. All bonds issued under the provisions of this chapter shall have and are hereby declared to have all the qualities and incidents of and shall be and are hereby made negotiable instruments under the Uniform Commercial Code of Virginia (§ 8.1-101 et seq.), subject only to provisions respecting registration of the bonds.
F. In addition to all other powers granted to the authority by this chapter, the authority may issue, from time to time, notes or other obligations of the authority for any of its authorized purposes. The provisions of this chapter which relate to bonds or revenue bonds shall apply to such notes or other obligations insofar as such provisions may be appropriate.
2. That all proceedings heretofore taken to provide for or with respect to establishing the form, denominations, maturities, redemption provisions, places of payment, interest rate or rates, payment installments, dates and all other terms and provisions with respect to bonds, notes and other obligations issued by an authority pursuant to the Industrial Development and Revenue Bond Act are hereby validated, ratified, approved and confirmed.