SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

1994 SESSION

LD8859200
HOUSE BILL NO. 675
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Counties, Cities and Towns
on February 11, 1994)
(Patron Prior to Substitute--Delegate DeBoer)
A BILL to amend and reenact §§ 15.1-1523, 15.1-1525 and 15.1-1526 of the Code of Virginia, relating to bonds issued by local government hospital or health center commissions.

Be it enacted by the General Assembly of Virginia:

1. That §§ 15.1-1523, 15.1-1525 and 15.1-1526 of the Code of Virginia are amended and reenacted as follows:

§ 15.1-1523. Provisions to secure payment of bonds.

Any resolution or resolutions of the commission authorizing the issuance of any bonds may contain provisions, which shall be a part of the contract with the holders of the bonds, (i) pledging any or all revenues of the hospital or health center to secure the payment of the interest on such bonds and to create a sinking fund to retire the principal thereof at maturity; (ii) providing for the granting of a lien on, or the creation of a security interest in, any property, real or personal, of the commission as security for the payment of the principal of, and interest on, such bonds and the due and punctual performance of any agreements made in connection therewith; (iii) providing for such schedule of fees and charges as will produce funds sufficient to pay operating costs and debt service until such bonds are retired; and (iv) prescribing the rights, obligations, powers and duties of the commission, the trustee under any trust indenture under which the bonds are issued, and the bondholders, in connection with or pertaining to such bonds.

§ 15.1-1525. Bonds payable from revenues of hospital or health centers.

Any bonds issued under this chapter shall be payable only from the revenues and receipts of the hospital or health center for the acquisition, establishment or construction of which the bonds were issued and from any property the commission has made subject to a lien to secure such bonds. The bonds and other obligations of the commission shall not be a debt of any city, county or town or of the Commonwealth, and neither the members of the commission nor any person executing the bonds or other obligations shall be liable personally thereon by reason of the issuance thereof.

§ 15.1-1526. Property of commission exempt from foreclosure or execution sale and judgment lien.

No interest of the commission in any property, real or personal, shall be subject to sale by foreclosure of a mortgage, trust indenture, or any other instrument thereon or relating thereto, either through judicial proceedings or the exercise of a power of sale contained in the instrument. All property of the commission shall be exempt from levy and sale by virtue of an execution, and no execution or judicial process shall issue against such commission. No judgment against the commission shall be a charge or lien upon its property, real or personal. Nothing contained in this section shall prohibit the owner of a leasehold interest granted by the commission from granting a lien or other security interest in his leasehold which would be subject to sale or foreclosure as provided in any instrument creating the lien or other security interest. Nothing contained in this section shall prohibit the commission from granting a lien on, or creating a security interest in, property, real or personal, of the commission to secure any bonds issued under this chapter, any of which property will be subject to sale or foreclosure as provided in the instrument granting such lien or creating such security interest.