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Developed and maintained by the Division of Legislative Automated Systems.
1997 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 36-55.41 of the Code of Virginia is amended and reenacted as follows:
§ 36-55.41. Reserve funds and appropriations.
(1) (a) A. 1. HDA may create and establish one or more
special funds (herein referred to as "capital reserve funds"), and shall pay
into each such capital reserve fund (1 i) any moneys
appropriated and made available by the Commonwealth for the purpose of such
fund, (2 ii) any proceeds of sale of notes or bonds, to
the extent provided in the resolution or resolutions of HDA authorizing the
issuance thereof, and (3 iii) any other moneys which may
be made available to HDA for the purpose of such fund from any other source or
sources. All moneys held in any capital reserve fund, except as hereinafter
provided, shall be used, as required, solely for the payment of the principal
of bonds secured in whole or in part by such fund or of the sinking fund
payments hereinafter mentioned with respect to such bonds, the purchase or
redemption of such bonds, the payment of interest on such bonds or the payment
of any redemption premium required to be paid when such bonds are redeemed
prior to maturity; however, if moneys in any such fund at any time are less
than the minimum capital reserve fund requirement established for such fund as
hereinafter provided, HDA shall not use such moneys for any optional purchase
or redemption of such bonds. Any income or interest earned by, or increment to,
any capital reserve fund due to the investment thereof may be transferred by
HDA to other funds or accounts of HDA to the extent it does not reduce the
amount of such capital reserve fund below the minimum capital reserve fund
requirement for such fund;
(b) 2. HDA shall not at any time issue bonds, secured in
whole or in part by a capital reserve fund, if upon the issuance of such bonds,
the amount of such capital reserve fund will be less than the minimum capital
reserve fund requirement of such fund, unless HDA, at the time of issuance of
such bonds, shall deposit in such fund from the proceeds of the bonds to be
issued, or from other sources, an amount which, together with the amount then
in such fund, will not be less than the minimum capital reserve fund
requirement for such fund. For purposes of this section, the term "minimum
capital reserve fund requirement" shall mean, as of any particular date of
computation, an amount of money, as provided in the resolutions of HDA
authorizing the bonds with respect to which such fund is established, equal to
not more than the greatest of the respective amounts, for the current or any
future fiscal year of HDA, of annual debt service on the bonds of HDA secured
in whole or in part by such fund, such annual debt service for any fiscal year
being the amount of money equal to the aggregate of (i) all interest payable
during such fiscal year on all bonds secured in whole or in part by such fund
outstanding on the date of computation plus (ii) the principal amount of all
such bonds outstanding on said date of computation which mature during such
fiscal year, plus (iii) all amounts specified in any resolution of
the authority authorizing any of such bonds as payable during such fiscal year
as a sinking fund payment with respect to any of such bonds which mature after
such fiscal year, all calculated on the assumption that such bonds will after
said date of computation cease to be outstanding by reason, but only by reason,
of the payment of bonds when due, and the payment when due and application in
accordance with the resolution authorizing those bonds, of all of such sinking
fund payments payable at or after said date of computation; however, in
computing the annual debt service for any fiscal year as aforesaid, bonds
deemed to have been paid in accordance with the defeasance provisions of the
resolution or resolutions of HDA authorizing the issuance thereof shall not be
included in bonds outstanding on the date of computation aforesaid;
(c) 3. In computing the amount of any capital reserve
funds for the purpose of this section, securities in which all or a portion of
such funds shall be invested shall be valued at par or if purchased at less
than par, at their cost to HDA;
(d) 4. To assure the continued operation and solvency of
HDA for the carrying out of its corporate purposes, provision is made in
subdivision (a) 1 of this subsection for the accumulation
in each capital reserve fund of an amount equal to the minimum capital reserve
fund requirement for such fund.
(2) B. In order further to assure the maintenance of the
foregoing capital reserve funds, the chairman of HDA shall annually, on or
before December 1, make and deliver to the Governor and Director of the Budget
his certificate stating the sum, if any, required to restore each such capital
reserve fund to the minimum capital reserve fund requirement for such fund.
Within five days after the beginning of each session of the General Assembly,
the Governor shall submit to the presiding officer of each house printed copies
of a budget including the sum, if any, required to restore each such capital
reserve fund to the minimum capital reserve fund requirement for such fund. All
sums appropriated by the legislature for such restoration and paid shall be
deposited by HDA in the applicable capital reserve fund.
(3) C. HDA shall create and establish such other fund or
funds as may be necessary or desirable for its corporate purposes.
(4) D. All amounts paid over to HDA by the Commonwealth
pursuant to the provisions of this section shall constitute and be accounted
for as advances by the Commonwealth to HDA and, subject to the rights of the
holders of any bonds or notes of HDA theretofore or thereafter issued, shall be
repaid to the Commonwealth without interest from all available operating
revenues of HDA in excess of amounts required for the payment of bonds, notes
or other obligations of HDA, the capital reserve funds and operating expenses.
(5) E. The outstanding principal amount of notes and
bonds issued by HDA secured by capital reserve funds pursuant to this section,
other than notes and bonds for which refunding obligations shall have been
issued pursuant to § 36-55.42, shall not exceed $1.3 $1.5
billion. For the purpose of this subdivision, the outstanding principal
amount of notes or bonds issued by HDA at a price less than the face amount
thereof shall be deemed to be the issue price of such notes or bonds.