Source: https://law.lis.virginia.gov/uncodifiedacts/2006/session1/chapter511/
Timestamp: 2019-06-17 15:28:30
Document Index: 79999691

Matched Legal Cases: ['§ 1', '§ 2', '§ 3', '§ 6', '§ 2', '§ 7', '§ 8', '§ 9', '§ 10', '§ 11', '§ 12', '§ 13']

2006 Uncodified Act - Chapter 511
Table of Contents » Chapter 511 Higher Educational Institutions Bond Act of 2006; created.
An Act to authorize the Treasury Board to issue bonds in an amount not to exceed $395,428,570 pursuant to Article X, Section 9(c) of the Constitution of Virginia, for paying costs of acquiring, constructing, and equipping revenue-producing capital projects at institutions of higher education of the Commonwealth, and to repeal Chapters 2 and 813 of the Acts of Assembly of 2004 and Chapter 83 of the Acts of Assembly of 2005.
1. § 1. Title. This act shall be known and may be cited as the "Commonwealth of Virginia Higher Educational Institutions Bond Act of 2006."
§ 2. Authorization of bonds and bond anticipation notes (BANs). The Treasury Board is hereby authorized, by and with the consent of the Governor, to sell and issue, pursuant to Article X, Section 9(c), of the Constitution of Virginia, at one time or from time to time, bonds of the Commonwealth, to be designated "Commonwealth of Virginia Higher Educational Institutions Bonds, Series . . . ," in an aggregate principal amount not exceeding $395,428,570, plus amounts needed to fund issuance costs, reserve funds, construction period interest, and other financing expenses. The Treasury Board is further hereby authorized, by and with the consent of the Governor, to borrow money in anticipation of the issuance of bonds by the issuance of bond anticipation notes (BANs), including BANs issued as commercial paper. The proceeds of such bonds and BANs, excluding amounts needed to fund issuance costs, reserve funds, and other financing expenses, shall be used exclusively for the purpose of providing funds, with any other available funds, for paying all or a portion of the costs of acquiring, constructing, renovating, enlarging, improving, and equipping revenue-producing capital projects at institutions of higher learning of the Commonwealth as follows:
Institution             Project Title          Project Code    Amount
George Mason            Renovate Commonwealth  16690
University              and Dominion housing               2,537,700
George Mason            Renovate student       17050
University              housing, President's               3,340,000
Park I
George Mason            Construct student      17056
University              housing VII                       38,778,000
James Madison           Renovate Bluestone     16687
University              Residence Hall                     6,810,000
Phase 3
The College Of          Renovate Commons       16647
William And Mary        Dining Hall                        1,480,000
University of Mary      Acquisition of         16686
Washington              Student Residence                 10,000,000
University Of           Construct Alderman     16650
Virginia                Road Housing                      22,500,000
Virginia Polytechnic    Improve major resi-    17008
Institute and State     dence and dining hall              4,000,000
Virginia Polytechnic    Parking Auxiliary      14815
Institute and State     Projects                           4,942,700
Virginia Polytechnic    Construct New          16682
Institute and State     Residence Hall                    22,000,000
Virginia Polytechnic    Construct Dining and   16683
Institute and State     Student Union Facility             6,250,000
Christopher Newport     Construct Residence    17359
University              Hall V                            25,000,000
George Mason            Construct Housing VII  17367
University              and Entrance Road                 48,486,000
James Madison           Construct new          17329
University              residence hall                    34,284,000
James Madison           Renovate Bluestone     17330
University              Dormitories, Phase IV             23,909,000
James Madison           Construct New
University              Dining Facility                   18,914,170
Longwood University     Renovate Cox Hall      17320       12,893,000
Longwood University     Renovate Stubbs Hall   17321       13,878,000
Old Dominion            Renovate Student       16688
University              Housing, Phase I                   2,000,000
Old Dominion            Construct Residence
University              Hall, Phase II        17342       28,931,000
The College Of William  Renovate Dormitories   17281
And Mary In Virginia                                       5,000,000
Virginia Polytechnic    Improve Residence and  17294
Institute and State     Dining Halls                      10,000,000
Virginia State          Construct Residence    17307
University              Halls                             17,461,000
Virginia State          Renovate Howard Hall   17308
University                                                 7,620,000
Virginia State          Construct Dining Hall  17309
University                                                 4,501,000
Longwood University     Renovate Housing       16874
Facilities                         8,961,000
Virginia State          Construct Student
University              Village 240 Bed       16685       10,952,000
Residence Hall
Total  $395,428,570
§ 3. Application of proceeds. The proceeds, including any premium, of bonds and BANs (except the proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds, and (iii) refunding BANs) shall be deposited in a special capital outlay fund in the state treasury and, together with the investment income thereon, shall be disbursed by the State Treasurer for paying costs of the acquisition, construction, renovation, enlargement, improvement, and equipping of the authorized capital projects, including financing costs. The proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds, and (iii) refunding BANs shall be used to pay such BANs, refunded bonds, and refunded BANs.
In the discretion of the Treasury Board, bonds and BANs may be issued at one time or from time to time and may be sold and issued at the same time with other general obligation bonds and BANs, respectively, of the Commonwealth authorized pursuant to Article X, Section 9 (a)(3), (b), and (c) of the Constitution of Virginia, as separate issues or as a combined issue, designated "Commonwealth of Virginia General Obligation Bonds Bond Anticipation Notes, Series . . . .”
§ 6. Sources for payment of expenses. All expenses incurred under this act shall be paid from the proceeds of bonds or BANs, from payments made by the institutions for which the capital projects were authorized in § 2 hereof, or from any other available funds as the Treasury Board shall determine.
§ 7. Revenues. Each institution of higher learning mentioned above is hereby authorized (i) to fix, revise, charge, and collect rates, fees, and charges for or in connection with the use, occupancy, and services of each capital project mentioned above or the system of which such capital project is a part and (ii) to pledge to the portion of the bonds or BANs issued for such capital project the net revenues resulting from such rates, fees, and charges and remaining after payment of the expenses of operating the project or system, as the case may be. Each such institution is further authorized to create debt service and sinking funds for the payments of the principal of, premium, if any, and interest on the bonds and other reserves required by any agency of the United States of America purchasing the bonds or any portion thereof.
§ 8. Investments and Contracts. A. Pending the application of the proceeds of the bonds or BANs (including refunding bonds and BANs) to the purpose for which they have been authorized and the application of funds set aside for the purpose of payment of bonds or BANs, they may be invested by the State Treasurer in securities that are legal investments under the laws of the Commonwealth for public funds and sinking funds, as the case may be. Whenever the State Treasurer receives interest from the investment of the proceeds of bonds or any BANs, such interest shall become a part of the principal of the bonds or any BANs and shall be used in the same manner as required for principal of the bonds or BANs.
B. The Commonwealth may enter into any contract or other arrangement that is determined to be necessary or appropriate to place the obligation or investment of the Commonwealth, as represented by bonds, BANs or investments, in whole or in part, on the interest rate, cash flow, or other basis desired by the Commonwealth. Such contract or other arrangement may include, without limitation, contracts commonly known as interest rate swap agreements and futures or contracts providing for payments based on levels of, or changes in, interest rates. These contracts or arrangements may be entered into by the Commonwealth in connection with, or incidental to, entering into, or maintaining any (i) agreement which secures bonds or BANs or (ii) investment, or contract providing for investment, otherwise authorized by law. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the Commonwealth, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency and any other criteria as may be appropriate. The determinations referred to in this paragraph may be made by the Treasury Board or any public funds manager with professional investment capabilities duly authorized by the Treasury Board to make such determinations.
C. Any money set aside and pledged to secure payments of bonds, BANs, or any of the contracts entered into pursuant to this section may be invested in accordance with subsection A of this section and may be pledged to and used to service any of the contracts or other arrangements entered into pursuant to subsection B of this section.
§ 9. Security for bonds and BANs. The net revenues of the capital projects set forth above and the full faith and credit of the Commonwealth are hereby irrevocably pledged for the payment of the principal of and the interest on bonds and BANs (unless the Treasury Board, by and with the consent of the Governor, shall provide otherwise) issued under this act. The proceeds of (i) bonds the issuance of which has been anticipated by BANs, (ii) refunding bonds, and (iii) refunding BANs are hereby irrevocably pledged for the payment of principal of and interest and any premium on the BANs or bonds to be paid or redeemed thereby. In the event the net revenues pledged to the payment of the bonds or BANs are insufficient in any fiscal year for the timely payment of the principal of, premium, if any, and interest on the bonds or BANs, where the full faith and credit of the Commonwealth have been pledged, the General Assembly shall appropriate a sum sufficient therefor or the Governor shall direct payment therefor from the general fund revenues of the Commonwealth.
§ 10. Exemption of interest from tax. The bonds and BANs issued under the provisions of this Act, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free and exempt from taxation by the Commonwealth and by any county, city, town, or other political subdivision thereof. The Treasury Board is authorized to take or refrain from taking any and all actions and to covenant to such effect, and to require the participating institutions to do and to covenant likewise, to the extent that, in the judgment of the Treasury Board, it is appropriate in order that interest on the bonds and BANs may be exempt from federal income tax. Alternatively, interest on bonds and BANs may be made subject to inclusion in gross income of the holders thereof for federal income tax purposes.
§ 11. Refunding bonds and BANs. The Treasury Board is authorized, by and with the consent of the Governor, to sell and issue, at one time or from time to time, refunding bonds and BANs of the Commonwealth, to refund any or all of the bonds and BANs, respectively, issued under this Act or otherwise authorized pursuant to Article X, Section 9(c), of the Constitution of Virginia. Refunding bonds and BANs may be issued in a principal amount up to the amount necessary to pay at maturity or redeem the bonds and BANs to be refunded and pay all issuance costs and other financing expenses of the refunding. Such refunding bonds and BANs may be issued whether or not the obligations to be refunded are then subject to redemption.
§ 12. Defeasance. Any bond or BAN for which cash or direct obligations of the United States of America shall have been set aside in escrow with the State Treasurer or a bank or trust company, within or without the Commonwealth, shall be deemed no longer outstanding under the applicable authorizing instrument, this Act, and Article X, Section 9(c) or (b), as the case may be, of the Constitution of Virginia.
§ 13. Severability. The provisions of this Act or the application thereof to any person or circumstance that are held invalid shall not affect the validity of other provisions or applications of this Act which can be given effect without the invalid provisions or applications.
2. That Chapters 2 and 813 of the Acts of Assembly of 2004 and Chapter 83 of the Acts of Assembly of 2005 are repealed; however, such repeal shall not operate to invalidate, alter the security, or prohibit the refunding of bonds heretofore issued pursuant to such acts.