CHAPTER 687

An Act to amend and reenact §§ 15.1-1874, 15.1-1879 and 15.1-1882 of
the Code of Virginia, relating to industrial development authorities,
bonds issued thereby, and rents, fees and other charges to be paid by
such authorities to the political subdivisions with respect to which
they were created.

, [H 850]

Approved April 5, 1968

Be it enacted by the General Assembly of Virginia:

1. That § 15.1-1382 of the Code of Virginia be amended and reenacted
as follows:

§ 15.1- 1374. Definitions. —Wherever used in this chapter, unless a
different meaning clearly appears in the context, the following terms,
whether used in the singular or plural, shall be given the following respec-
tive interpretations:

(a) “Authority” shall mean any political subdivision, a body politic
and corporate, created, organized and operated pursuant to the provisions
of this chapter, or if said authority shall be abolished, the board, body,
commission, department or officer succeeding to the principal functions
thereof or to whom the powers given by this chapter shall be given by law.

(b) “Municipality” shall mean any county or incorporated city or
town in the Commonwealth with respect to which an authority may be
organized and in which it is contemplated the authority will function.

(c) “Governing body” shall mean the board or body in which the
general legislative powers of the municipality are vested.

(d) “Authority facilities” or “facilities” shall mean any or all indus-
trial facilities, located within or without or partially within or without
the municipality creating the authority, now existing or hereafter acquired
or constructed by the authority pursuant to the terms of this chapter,
together with any or all buildings, improvements, additions, extensions,
replacements, appurtenances, lands, rights in land, water rights, fran-
chises, machinery, equipment, furnishings, landscaping, utilities, ap-
proaches, roadways and other facilities necessary or desirable in connec-
tion therewith or incidental thereto, acquired or constructed by the
authority.

(e) “Cost” shall mean and shall include, as applied to authority
facilities, the cost of construction, the cost of acquisition of all lands,
structures, rights-of-way, franchises, easements and other property rights
and interests, the cost of demolishing, removing or relocating any build-
ings or structures on lands acquired, including the cost of acquiring any
lands to which such buildings or structures may be moved or relocated,
the cost of all labor, materials, machinery and equipment, financing
charges, interest on all bonds prior to and during construction and, if
deemed advisable by the authority, for a period not exceeding one year
after completion of such construction, cost of engineering, financial and
legal services, plans, specifications, studies, surveys, estimates of cost and
of revenues, other expenses necessary or incident to determining the fea-
sibility or practicability of constructing the authority facilities, adminis-
trative expenses, provisions for working capital, reserves for interest and
for extensions, enlargements, additions and improvements, and such other
expenses as may be necessary or incident to the construction of the author-
ity facilities, the financing of such construction and the placing of the
authority facilities in operation. Any obligation or expense incurred by
the Commonwealth or any agency thereof, with the approval of the au-
thority, for studies, surveys, borings, preparation of plans and specifica-
tions or other work or materials in connection with the construction of
the authority facilities may be regarded as a part of the cost of the
authority facilities and may be reimbursed to the Commonwealth or any
agency thereof out of the proceeds of the bonds issued for such authority
facilities as hereinafter authorized.

(f) “Bonds” or “revenue bonds” shall embrace notes, bonds and
other obligations authorized to be issued by the authority pursuant to the
provisions of this chapter.

(g) “Revenues” shall mean any or all fees, rates, rentals and receipts
derived by the authority from, and all other moneys and income of what-
soever kind or character obtained by the authority in connection with the
ownership and leasing of the authority facilities.

(h) “Commonwealth” shall mean the State of Virginia.

(i) “Trust indenture” shall mean any trust agreement or mortgage
under which bonds authorized pursuant to this chapter may be secured.

(j) “Enterprise” shall mean any industry for the manufacturing,
processing, assembling, storing, warehousing, distributing, or selling any
products of agriculture, mining, or industry and for research and develop-
ment * or scientific laboratories, or for such other related businesses as
will be in the furtherance of the public purposes of this chapter.

§ 15.1-1879. Issuance of bonds, notes and other obligations of
authority.—(a) The authority shall have the power to issue bonds from
time to time in its discretion, for any of its purposes, including the pay-
ment or retirement of bonds previously issued by it. All bonds issued by
the authority shall be payable solely from the revenues and receipts de-
rived from the leasing or sale by the authority of its facilities or any part
thereof and the authority may issue such types of bonds as it may deter-
mine, 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 (iii) exclusively from the revenues and receipts of
certain designated facilities 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 same, all bonds shall be payable solely and exclu-
sively from the revenues and receipts of a particular facility. 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 pay-
able at such place or places whether within or without the Commonwealth,
may bear interest at such rate or rates, * may be payable at such time or
times and at such place or places, may be evidenced in such manner, and
may contain such provisions not inconsistent herewith, all as shall be pro-
vided and specified by the board of directors in authorizing each par-
ticular bond issue. If deemed advisable by the board of directors, there
may be retained in the proceedings under which any bonds of the author-
ity 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 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 pro-
vided 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 author-
ity to be most advantageous, and the authority may pay all costs, pre-
miums 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 subse-
quent 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 au-
thority 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 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 appli-
cation 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 or not the bonds to be refunded were
issued in connection with the same facilities or separate facilities, and
regardless of whether or not the bonds proposed to be refunded shall be
payable on the same date or on different dates or shall be due serially or
otherwise.

(b) All bonds shall be signed by the 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) of the au-
thority, and any coupons attached thereto shall bear the facsimile sig-
nature of said chairman. In case any officer whose signature or a facsimile
of whose signature shall appear on any bonds or coupons shall cease 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.

(c) If the proceeds derived from a particular bond issue, due to
error of estimates or otherwise, shall be 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 other-
wise 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 shall become
mutilated or shall be destroyed or lost. Bonds may be issued under the
provisions of this chapter without obtaining the consent of any depart-
ment, division, commission, board, bureau or agency of the Common-
wealth, 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; provided, however, that
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 Com-
mercial Code of Virginia, subject only to provisions respecting registration
of the bonds.

({) In addition to all other powers granted to the authority by this
chapter, the authority is authorized to provide for the issuance, from time
to time, of notes or other obligations of the authority for any of its author-
ized purposes. All of 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.

§ 15.1-1882. Rents, fees and other charges.—The authority shall fix
and revise from time to time the rents, fees and other charges to be paid
for the use of various authority facilities and for any other services fur-
nished or provided by the authority. Such rents, fees and charges shall be
fixed so as to provide at least sufficient funds to pay the cost of maintain-
ing, repairing and operating such projects and the principal and interest of
any bonds issued by the authority or other debts contracted as the same
shall become due and payable. * The authority and the political subdivision
in which all or any part of a particular authority facility is located may
agree on payment by the authority on account of governmental services
to be rendered by the political subdivision in such amounts as the authority
may find to be consistent with the purposes of this chapter. A reserve may
be accumulated and maintained out of the revenues and receipts of the
authority for extraordinary repairs and expenses and for such other pur-
poses as may be provided in any resolution authorizing a bond issue or in
any trust indenture securing the authority’s bonds. Subject to such provi-
sions and restrictions as may be set forth in the resolution or in the trust
indenture authorizing or securing any of the bonds or other obligations
hereunder, the authority shall have exclusive control of the revenues and
receipts derived from any authority facility rented and controlled by it
and the right to use the revenues and receipts in the exercise of its powers
and duties set forth in this chapter.