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2006 SESSION
065264380Patrons-- Lingamfelter, Albo, Athey, Cosgrove, Frederick, Gilbert, Hugo, Jones, S.C., Landes, Morgan, O'Bannon, Peace, Rust and Suit
Be it enacted by the General Assembly of Virginia:
1. That § 62.1-203 of the Code of Virginia is amended and reenacted and the Code of Virginia is amended by adding in Chapter 22 of Title 2.2 an article numbered 10, consisting of sections numbered 2.2-2336 through 2.2-2350; a section numbered 10.1-1186.1:1; and in Title 62.1 a chapter numbered 23.01, consisting of sections numbered 62.1-241.01 through 62.1-241.11, as follows:
§ 2.2-2336. Authority created.
The Virginia Chesapeake Bay Clean-up Authority is created, with the duties and powers set forth in this article, as a public body corporate and as a political subdivision of the Commonwealth. The Authority is constituted as a public instrumentality exercising public and essential governmental functions, and the exercise by the Authority of the duties and powers conferred by this article shall be deemed and held to be the performance of an essential governmental function of the Commonwealth. The exercise of the powers granted by this article and its public purpose shall be in all respects for the benefit of the inhabitants of the Commonwealth.
§ 2.2-2337. Board of directors; members and officers; executive director.
A. The Authority shall be governed by a board of
directors consisting of 15 members as follows: the
Chairman of the House Committee on Agriculture, Chesapeake and Natural
Resources; the Chairman of
the House Committee on Appropriations; the Chairman of the Senate Committee on Finance; four nonlegislative
members to be appointed by the Speaker of the House
of Delegates; two nonlegislative members to be appointed
by the Senate Committee on Rules; and six nonlegislative
members to be appointed by the Governor. Of
the nonlegislative members appointed by the Governor, (i) one
shall have extensive experience in business finance, (ii) one
shall have extensive experience in civil
engineering, (iii) one
shall have extensive experience in marine
science, (iv) one shall have extensive
experience in soil
agronomy, (v) one shall have extensive experience in agribusiness, and (vi) one
shall have extensive experience in livestock
nutrition.
B. Legislative members shall serve terms coincident with their terms of office. With the exception of initial staggered terms, the nonlegislative members shall serve terms of four years. Any appointment to fill a vacancy on the Board shall be made for the unexpired term of the member whose death, resignation, or removal created the vacancy. Nonlegislative members may be reappointed at the end of their four-year term.
C. The Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Finance shall be co-chairmen of the Board. Meetings of the Board shall be held at the call of either of the co-chairmen or of any seven members. Eight members shall constitute a quorum for the transaction of the Authority's business, and no vacancy in the membership shall impair the right of a quorum to exercise all the rights and perform all the duties of the Authority.
D. The members of the Board shall be entitled to reimbursement for their reasonable travel, meal, and lodging expenses incurred in attending the meetings of the Board or while otherwise engaged in the discharge of their duties. Such expenses shall be paid out of the treasury of the Authority upon vouchers signed by one of the co-chairmen of the Board or by such other person designated by the Board for this purpose.
E. The Board may employ an Executive Director of the Authority, who shall serve at the pleasure of the Board, to direct the day-to-day operations and activities of the Authority and carry out the powers and duties conferred upon him by the Board. The Executive Director and employees of the Authority shall be compensated in the manner provided by the Board and shall not be subject to the provisions of the Virginia Personnel Act (§ 2.2-2900 et seq.).
§ 2.2-2338. Duties of the Authority.
In addition to other duties prescribed by law, the Authority shall:
1. Develop, through the Department of Environmental Quality (the Department) as provided by § 10.1-1186.1:1, the Chesapeake Bay Clean-up Strategic Plan (the Plan);
2. Oversee the execution of the Plan by the Department, including the approval of any major alterations or modifications;
3. Approve all major expenditures related to the execution of the plan; and
4. Provide to the Governor and General Assembly an annual report on the progress of Chesapeake Bay clean-up detailing (i) the status of clean-up actions consistent with the Plan, (ii) funds spent to support the Plan, (iii) future financial requirements, (iv) recommended legislative action, and (v) future operations under the Plan.
§ 2.2-2339. Powers of Authority.
The Authority shall be granted all powers necessary or appropriate to carry out and to effectuate its purposes, including the power to:
1. Have perpetual succession as a public body corporate and as a political subdivision of the Commonwealth;
2. Adopt, amend, and repeal bylaws, rules, and regulations consistent with this article for the administration and regulation of its affairs, to carry into effect the powers and purposes of the Authority and the conduct of its business;
3. Sue and be sued in its own name;
4. Have an official seal and alter it at will, although the failure to affix this seal shall not affect the validity of any instrument executed on behalf of the Authority;
5. Maintain an office at any place that it designates;
6. Make and execute contracts and all other instruments and agreements necessary or convenient for the performance of its duties and the exercise of its powers and functions under this article;
7. Borrow money, make and issue bonds, including bonds as the Authority may determine to issue for accomplishing the purposes set forth in § 2.2-2328 or for refunding bonds previously issued by the Authority, whether such outstanding bonds have matured or are subject to redemption, or any combination of such purposes; secure the payment of all bonds, or any part thereof, by pledge, assignment, or deed of trust of all or any of its revenues, rentals, and receipts or of any project or property, real, personal, or mixed, tangible or intangible, or any rights and interest therein; make such agreements with the purchasers or holders of such bonds or with others in connection with any such bonds, whether issued or to be issued, as the Authority shall deem advisable; and in general to provide for the security for said bonds and the rights of holders thereof;
8. Make and enter into all contracts and agreements necessary or incidental to the performance of its duties, the furtherance of its purposes, and the execution of its powers under this article, including interstate compacts and agreements with any person or federal agency;
9. Employ, in its discretion, consultants, attorneys, architects, engineers, accountants, financial experts, investment bankers, superintendents, managers, marine scientists, agronomists, hydrologists, and such other employees and agents as may be necessary, and to fix their compensation to be payable from funds made available to the Authority;
10. Receive and accept from any federal or private agency, foundation, corporation, association, or person grants, donations of money, real property, or personal property for the benefit of the Authority, and to receive and accept from the Commonwealth or any state, any municipality, county or other political subdivision thereof, and from any other source, aid, or contributions of either money, property, or other things of value, to be held, used, and applied for the purposes for which such grants and contributions may be made;
11. Receive and accept from any source aid, grants, and contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of this article subject to the conditions upon which the aid, grants, or contributions are made;
12. Enter into agreements with any department, agency or instrumentality of the United States, the Commonwealth, the District of Columbia, or any state for purposes consistent with its mission;
13. Make grants to local governments with any funds of the Authority available for this purpose;
14. Raise money in the corporate, nonprofit, and nonstate communities to finance the Authority's activities; and
15. Do any act necessary or convenient to the exercise of the powers granted or reasonably implied by this article and not otherwise inconsistent with the law of the Commonwealth.
§ 2.2-2340. Grants or loans of public or private funds.
A. The Authority may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan or both or otherwise, to accomplish, in whole or in part, any of the purposes of this article. All federal moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the United States and as are consistent with state law; and all state moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the Commonwealth.
B. The Commonwealth may make grants of money or real or personal property to the Authority for the purpose of enabling it to carry out its corporate purposes and for the exercise of its powers. This section shall not be construed to limit any other power the Commonwealth may have to make grants to the Authority.
§ 2.2-2341. Bonds of Authority; terms and conditions.
The bonds of each issue shall be dated, shall bear interest at such rates as shall be fixed by the Authority, shall mature at such time not exceeding 40 years from their date as may be determined by the Authority, and may be made redeemable before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The Authority shall determine the form of bonds and their manner of execution, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth. The bonds shall be (i) signed by both co-chairmen of the Authority, or if so authorized by the Authority, shall bear their facsimile signatures, (ii) and be impressed or imprinted with the official seal of the Authority, or, if so authorized by the Authority, a facsimile signature thereof shall be impressed or imprinted thereon and attested by the secretary or any assistant secretary of the Authority, or, if so authorized by the Authority, with the facsimile signature of such secretary or assistant secretary. Any coupons attached to bonds issued by the Authority shall bear the signatures of the co-chairmen of the Authority or a facsimile thereof. In case any officer whose signature or a facsimile of signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of such bonds, his 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, and any bonds may bear the facsimile signature of, or may be signed by, such persons as at the actual time of the execution of such bonds shall be the proper officers to sign the bonds although at the date of such bonds such persons may not have been such officers. The bonds may be issued in coupon or in registered form, or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. The Authority may sell bonds in a manner, either at public or private sale, and for a price or prices as it may determine will best effect the purposes of this article.
The proceeds of the bonds of each issue shall be used solely for the purposes, and in furtherance of the powers, of the Authority as may be provided in the resolution authorizing the issuance of such bonds or in the trust agreement authorized by § 2.2-2342 securing the bonds.
In addition to the above powers, the Authority may issue interim receipts or temporary bonds as provided in § 15.2-2616 and execute and deliver new bonds in place of bonds mutilated, lost or destroyed, as provided in § 15.2-2621.
No obligation of the Authority shall be deemed to constitute a debt, or pledge of the faith and credit, of the Commonwealth or of any political subdivision thereof, but shall be payable solely from the revenue and other funds of the Authority pledged thereto. All such obligations shall contain on the face thereof a statement to the effect that the Commonwealth, any political subdivisions thereof and the Authority shall not be obligated to pay the same or the interest thereon except from revenues and other funds of the Authority pledged thereto, and that neither the faith and credit nor the taxing power of the Commonwealth or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligations.
All expenses incurred in carrying out the provisions of this article shall be payable solely from funds provided under the provisions of this article and no liability shall be incurred by the Authority beyond the extent to which moneys have been provided under the provisions of this article.
§ 2.2-2342. Trust agreement securing bonds.
In the discretion of the Authority, any bonds issued under the provisions of this article may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. The trust agreement or the resolution providing for the issuance of the bonds may (i) pledge or assign the revenues to be received and provide for the mortgage of any project or property or any part thereof; (ii) contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the acquisition of property and the planning, development, acquisition, construction, rehabilitation, establishment, improvement, extension, enlargement, maintenance, repair, operation and insurance of the project in connection with which the bonds have been authorized; (iii) establish the rates and fees to be charged; (iv) contain provisions as to the custody, safeguarding and application of all moneys; and (v) contain conditions or limitations with respect to the issuance of additional bonds. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth that may act as depository of the proceeds of bonds or of revenue to furnish the indemnifying bonds or to pledge the securities required by the Authority. Any trust agreement may set forth the rights of action by bondholders. In addition to the foregoing, any trust agreement or resolution may contain other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated as a part of the cost of the operation of the project or projects.
§ 2.2-2343. Moneys received deemed trust funds.
All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this article. The resolution authorizing the bonds of any issue or the trust agreement securing such bonds shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as a trustee of such moneys and shall hold and apply the same for the purposes of this article hereof, subject to the regulations as this article and the resolution or trust agreement may provide.
§ 2.2-2344. Proceedings by bondholder or trustee to enforce rights.
Any holder of bonds issued under the provisions of this article or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by the trust agreement or the resolution authorizing the issuance of such bonds, may either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the Commonwealth or granted hereunder or under the trust agreement or resolution, and may enforce and compel the performance of all duties required by this article or by the trust agreement or resolution to be performed by the Authority or by any officer thereof, including the fixing, charging, and collecting of rates, rentals, and other charges.
§ 2.2-2345. Bonds made securities for investment and deposit.
Bonds issued by the Authority under the provisions of this article shall be securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds shall be securities that may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or obligations of the Commonwealth is now or may be authorized by law.
§ 2.2-2346. Revenue refunding bonds; bonds for refunding and for cost of additional projects.
The Authority may provide for the issuance of revenue refunding bonds for the purpose of refunding any bonds of the Authority then outstanding that have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds, and, if deemed advisable by the Authority, for the additional purpose of constructing improvements, extensions, or enlargements of the project or projects in connection with which the bonds to be refunded shall have been issued. The Authority may provide by resolution for the issuance of its revenue bonds for the combined purpose of (i) refunding any bonds then outstanding that shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds, and (ii) paying all or any part of the cost of any additional project or any portion thereof. The issuance of the bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Authority in respect of the same shall be governed by the provisions of this article insofar as they may be applicable.
§ 2.2-2347. Grants or loans of public or private funds.
The Authority may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan or both or otherwise, to accomplish, in whole or in part, any of the purposes of this article. All federal moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the United States and as are consistent with; and all state moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the Commonwealth.
§ 2.2-2348. Moneys of Authority; examination of books by the Auditor of Public Accounts.
All moneys of the Authority, from whatever source derived, shall be paid to the treasurer of the Authority. Such moneys shall be deposited in the first instance by the treasurer in one or more banks or trust companies, in one or more special accounts. All banks and trust companies are authorized to give such security for such deposits, if required by the Authority. The moneys in such accounts shall be paid out on the warrant or other order of the treasurer of the Authority or of other persons as the Authority may authorize to execute such warrants or orders. The Auditor of Public Accounts or his legally authorized representatives shall examine the accounts and books of the Authority.
§ 2.2-2349. Exemption from taxes or assessments.
The exercise of the powers granted by this article shall be in all respects for the benefit of the people of the Commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of projects by the Authority and the undertaking of activities in furtherance of the purpose of the Authority constitute the performance of essential governmental functions, the Authority shall not be required to pay any taxes or assessments upon any project or any property acquired or used by the Authority under the provisions of this article or upon the income therefrom, including sales and use taxes on tangible personal property used in the operations of the Authority, and any bonds issued under the provisions of this article, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from state and local taxation. The exemption granted in this section shall not be construed to extend to persons conducting on the premises of a facility businesses for which local or state taxes would otherwise be required.
§ 2.2-2350. Cooperation and assistance.
All agencies, authorities, and institutions of the Commonwealth shall cooperate and provide such assistance to the Authority as the Authority may request.
§ 10.1-1186.1:1. Department to develop Chesapeake Bay Clean-up Strategic Plan; Virginia Chesapeake Bay Clean-up Authority.
The Department of Environmental Quality shall develop
a comprehensive Chesapeake Bay Clean-up Strategic Plan (the
Plan). Upon approval of the Plan by the Virginia Chesapeake Bay Clean-up Authority (the
Authority) created pursuant to § 2.2-2336, the Department shall execute the
plan. The Authority shall provide
oversight of the plan and approve all modifications
suggested from time to time by the Department.
§ 62.1-203. Powers of Authority.
The Authority is granted all powers necessary or appropriate to carry out and to effectuate its purposes, including the following:
1. To have perpetual succession as a public body corporate and as a political subdivision of the Commonwealth;
2. To adopt, amend and repeal bylaws, and rules and regulations, not inconsistent with this chapter for the administration and regulation of its affairs and to carry into effect the powers and purposes of the Authority and the conduct of its business;
3. To sue and be sued in its own name;
4. To have an official seal and alter it at will although the failure to affix this seal shall not affect the validity of any instrument executed on behalf of the Authority;
5. To maintain an office at any place within the Commonwealth which it designates;
6. To make and execute contracts and all other instruments and agreements necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter;
7. To sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of all or any part of its properties and assets;
8. To employ officers, employees, agents, advisers and consultants, including without limitations, attorneys, financial advisers, engineers and other technical advisers and public accountants and, the provisions of any other law to the contrary notwithstanding, to determine their duties and compensation without the approval of any other agency or instrumentality;
9. To procure insurance, in amounts and from insurers of its choice, or provide self-insurance, against any loss, cost, or expense in connection with its property, assets or activities, including insurance or self-insurance against liability for its acts or the acts of its directors, employees or agents and for the indemnification of the members of its Board of Directors and its employees and agents;
10. To procure credit enhancements from any public or private entities, including any department, agency or instrumentality of the United States of America or the Commonwealth, for the payment of any bonds issued by the Authority, including the power to pay premiums or fees on any such credit enhancements;
11. To receive and accept from any source aid, grants and contributions of money, property, labor or other things of value to be held, used and applied to carry out the purposes of this chapter subject to the conditions upon which the aid, grants or contributions are made;
12. To enter into agreements with any department, agency or instrumentality of the United States of America or, the Commonwealth, the District of Columbia or any adjoining state for the purpose of planning, regulating and providing for the financing of any projects;
13. To collect, or to authorize the trustee under any trust indenture securing any bonds or any other fiduciary to collect, amounts due under any local obligations owned or credit enhanced by the Authority, including taking the action required by § 15.2-2659 or § 62.1-216.1 to obtain payment of any sums in default;
14. To enter into contracts or agreements for the servicing and processing of local obligations owned by the Authority;
15. To invest or reinvest its funds as provided in this chapter or permitted by applicable law;
16. Unless restricted under any agreement with holders of bonds, to consent to any modification with respect to the rate of interest, time and payment of any installment of principal or interest, or any other term of any local obligations owned by the Authority;
17. To establish and revise, amend and repeal, and to charge and collect, fees and charges in connection with any activities or services of the Authority;
18. To do any act necessary or convenient to the exercise of the powers granted or reasonably implied by this chapter; and
19. To pledge as security for the payment of any or all bonds
of the Authority, all or any part of the Capital Reserve Fund or other reserve fund or account transferred to a trustee for such
purpose from the Water Facilities Revolving Fund pursuant to § 62.1-231,
or from the Water Supply Revolving
Fund pursuant to § 62.1-240, or
from the Virginia Solid Waste or Recycling Revolving Fund pursuant to §
62.1-241.9, or
from the Virginia Airports Revolving Fund pursuant to § 5.1-30.6,
or from the Chesapeake Bay Clean-up Revolving Fund pursuant
to 62.1-241.07.
CHAPTER 23.01.
CHESAPEAKE BAY CLEAN-UP REVOLVING FUND.
§ 62.1-241.01. Definitions.
"Authority” means the Virginia Resources Authority created in Chapter 21 (§ 62.1-197 et seq.) of Title 62.1.
“Board” means the Board of Directors of the Virginia Resources Authority.
"Cost” as applied to any project financed under the provisions of this chapter, means the reasonable and necessary costs incurred for carrying out all works and undertakings necessary or incident to the accomplishment of any project. It includes, without limitation, all necessary developmental, planning and feasibility studies, surveys, plans, and specifications; architectural, engineering, financial, legal, or other special services; site preparation and development, including the demolition or removal of existing structures; the costs of acquisition of land and any buildings and improvements thereon, including the discharge of any obligation of the seller of such land, buildings, or improvements; labor; materials, machinery and equipment; the funding of accounts and reserves that the Authority may require; the reasonable costs of financing incurred by the local government in the course of the development of the project; carrying charges incurred prior to completion of the project; interest on local obligations issued to finance the project to a date subsequent to the estimated date the project is to be placed in service; necessary expenses incurred in connection with placing the project in service; and the cost of other items that the Authority determines to be reasonable and necessary. It also includes the amount of any contribution, grant, or aid that a local government may make or give to any adjoining state, the District of Columbia, or any department, agency or instrumentality thereof to pay the costs incident and necessary to the accomplishment of any project, including, without limitation, the items set forth above.
"Fund" means the Chesapeake Bay Clean-up Revolving Fund created by this chapter.
"Local Government" means any county, city, town, municipal corporation, authority, district, commission, or political subdivision of the Commonwealth created by the General Assembly or otherwise created pursuant to the laws of the Commonwealth or any combination of the foregoing.
"Project" means all or any part of a facility related to, in support of, used, determined, or to be used or determined to be for, or for the benefit of, watershed protection or improvement; wastewater (including surface or groundwater) or sewage collection, treatment, disposal; drainage or stormwater management; pollution prevention and may consist of or include any or all facilities related to the needs or convenience of such interests, together with any or all buildings or other structures, improvements, additions, extensions, replacements, machinery or equipment, rolling stock, and any or all appurtenances, lands, rights in land, rights-of-way, or other facilities necessary or desirable in connection therewith or incidental thereto.
§ 62.1-241.02. Creation and management of the Chesapeake Bay Clean-up Revolving Fund.
A. There is hereby created and set apart a special, permanent, perpetual, and nonreverting fund to be known as the Chesapeake Bay Clean-up Revolving Fund for the purposes of protecting, supporting, enhancing, furthering, and improving the waterways and watersheds and related interests of the Commonwealth. The Fund shall consist of sums appropriated to the Fund by the General Assembly; all receipts by the Fund, including, but not limited to, from loans made by it; all income from the investment of moneys held in the Fund; and any other sums designated for deposit to the Fund from any source, public or private, including, but not limited to, any federal grants, awards, or other forms of financial assistance received by the Commonwealth.
B. The Authority shall administer and manage the Fund, and establish the interest rates and repayment terms of loans as provided in this chapter. Consistent with this chapter, the Chesapeake Bay Clean-up Authority, shall, after consultation with all interested parties, develop a guidance document governing project eligibility and project priority criteria, and the Chesapeake Bay Clean-up Authority shall direct the distribution of loans and grants from the Fund to particular local governments. In order to carry out the administration and management of the Fund, the Authority is granted the power to employ officers, employees, agents, advisers and consultants, including, without limitation, attorneys, financial advisers, engineers and other technical advisers and public accountants and, the provisions of any other law to the contrary notwithstanding, to determine their duties and compensation without the approval of any other agency or instrumentality. The Authority may disburse from the Fund its reasonable costs and expenses incurred in the administration and management of the Fund and may establish and collect a reasonable fee for its management services. Notwithstanding this, any such fee or fees shall not exceed one-eighth of one percent (0.125%) of any bond par, loan, or grant amount as calculated thereon.
§ 62.1-241.03. Deposit of money; expenditures; investments.
All money belonging to the Fund shall be deposited in an account or accounts in banks or trust companies organized under the laws of the Commonwealth or in national banking associations located in Virginia or in savings institutions located in Virginia organized under the laws of the Commonwealth or the United States. The money in these accounts shall be paid by check and signed by the Executive Director of the Authority or other officers or employees designated by the Board of Directors of the Authority. All deposits of money shall, if required by the Authority, be secured in a manner determined by the Authority to be prudent, and all banks, trust companies and savings institutions are authorized to give security for the deposits. Money in the Fund shall not be commingled with other money of the Authority. Money in the Fund not needed for immediate use or disbursement may be invested or reinvested by the Authority in obligations or securities that are considered lawful investments for public funds under the laws of the Commonwealth.
§ 62.1-241.04. Collection of money due Fund.
The Authority is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund under any loan including, if appropriate, taking the action required by § 15.2-2659 or § 62.1-216.1 to obtain payment of any amounts in default or unpaid. Proceedings to recover amounts due to the Fund may be instituted by the Authority in the name of the Fund in the appropriate circuit court.
§ 62.1-241.05. Grants to local governments.
Subject to any restrictions that may apply to the use of money in the Fund, the Chesapeake Bay Clean-up Authority in its discretion may approve the use of money in the Fund to make and disburse grants or appropriations to local governments to pay the cost of any project. The Chesapeake Bay Clean-up Authority may establish such terms and conditions on any grant as it deems appropriate and shall evaluate each grant request in accordance with the guidelines developed for this purpose.
§ 62.1-241.06. Loans to local governments.
Subject to the Chesapeake Bay Clean-up Authority's direction after consultation with the Board, the Authority may make loans from the Fund 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 each such loan, and the amount of each such loan, shall be designated in writing to the Authority by the Chesapeake Bay Clean-up 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 otherwise provided in this chapter, the Authority shall determine the interest rate and terms and conditions of any loan from the Fund, which may vary between local governments. 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 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, 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.
2. 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, 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.
5. Perform other acts otherwise permitted by applicable law to secure payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:
a. 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;
b. 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;
c. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings or facilities for the purpose of operations and financing, and the pledging of the revenues from such combined projects, undertakings or facilities to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;
d. The maintenance, replacement, renewal, and repair of the project; and
e. The procurement of casualty and liability insurance.
6. Obtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority may request additional reviews at any time during the term of the loan. In addition, anyone receiving a report in accordance with § 62.1-241.10 may request an additional review as set forth in this section.
7. Directly offer, pledge, and consent to the Authority to take action pursuant to § 62.1-216.1 to obtain payment of any amounts in default.
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 chapter. 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 to any local government.
§ 62.1-241.07. Pledge of loans to secure bonds of Authority.
The Authority is empowered at any time and from time to time to pledge, assign or transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, issued to finance any project. The interests of the Fund in any assets so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds are not available from other sources pledged for such purpose, any of the assets or payments of principal and interest received on the assets pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds of the Authority secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds of the Authority. Any assets of the Fund pledged, assigned, or transferred in trust as set forth above and any payments of principal, interest, or earnings received thereon shall remain part of the Fund but shall be subject to the pledge, assignment, or transfer to secure the bonds of the Authority and shall be held by the trustee to which they are pledged, assigned, or transferred until no longer required for such purpose by the terms of the pledge, assignment, or transfer.
§ 62.1-241.08. Sale of loans.
The Authority is empowered at any time and from time to time to sell, upon such terms and conditions as the Authority shall deem appropriate, any loan, or interest therein, made pursuant to this chapter. The net proceeds of sale remaining after the payment of the costs and expenses of the sale shall be designated for deposit to, and become part of, the Fund.
§ 62.1-241.09. Powers of the Authority.
The Authority is authorized to do any act necessary or convenient to the exercise of the powers granted in this chapter or reasonably implied thereby.
§ 62.1-241.10. Report to the General Assembly and Governor.
The Authority shall report annually to the General Assembly and the Governor on all grants and loans made from the Fund.
§ 62.1-241.11. Liberal construction of chapter.
The provisions of this chapter shall be liberally construed to the end that its beneficial purposes may be effectuated. Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, general, special or local, the provisions of this chapter shall be controlling.
2. That the provisions of this act shall expire on July 1, 2017.
3. That the initial terms of the members of the board of directors of the Virginia Chesapeake Bay Clean-up Authority appointed pursuant to this act shall be staggered as follows: (i) two members appointed by the Governor, one member appointed by the Speaker of the House of Delegates and one member appointed by the Senate Committee on Rules to a term of three years; (ii) two members appointed by the Governor, two members appointed by the Speaker of the House of Delegates and one member appointed by the Senate Committee on Rules to a term of five years, and (iii) two members appointed by the Governor and one member appointed by the Speaker of the House of Delegates for a term of six years. Thereafter the terms of members shall be four years.