Code of Virginia
Chapter 30 - Eastern Virginia Medical School
§ 23.1-3007. Medical School; powers and duties; bonds

A. The Medical School may issue bonds to pay all or part of the cost of any project within the Commonwealth, finance and refinance any of its programs or its general operations, or refund any outstanding bonds or other obligations of the Medical School whether or not the bonds or obligations to be refunded have matured or are subject to redemption.
B. The Medical School may issue refunding bonds in exchange for bonds or obligations being refunded to pay (i) the principal, premium, if any, and interest accrued and to accrue on such bonds or obligations or any portion of such bonds or obligations to maturity or earlier date of redemption; (ii) the purchase price of any such bonds or obligations to be retired upon such purchase; or (iii) any related payment in connection with such refunding bonds.
C. The Medical School may issue such types of bonds as it may determine, including bonds payable as to principal and interest from any one or more of the following sources: (i) its revenues generally; (ii) the income and revenues of a particular project, including revenues from the sale or lease of such project; (iii) the income and revenues of certain designated projects, whether they are financed in whole or in part from the proceeds of such bonds; (iv) the proceeds of the sale or lease of any project, whether or not it is financed from the proceeds of such bonds; (v) funds realized from the enforcement of security interests or other liens securing such bonds; (vi) proceeds from the sale of bonds of the Medical School; (vii) payments due under letters of credit, policies of municipal bond insurance, guarantees, or other credit enhancements securing payment of bonds of the Medical School; (viii) any reserve or sinking funds created to secure such payment; or (ix) other available funds of the Medical School.
D. Bonds of the Medical School may be (i) issued in one or more series and (ii) made redeemable or subject to tender before maturity at such price and under such terms and conditions as may be fixed by the Medical School prior to the issuance of the bonds and shall be authorized by resolution, be dated, mature no later than 40 years from their date, and bear interest payable at such time and rate as may be determined by the Medical School and in such a manner as may be determined by the Medical School, including a determination by agents designated by the Medical School pursuant to the Medical School's guidelines.
E. The Medical School shall determine the form, including any interest coupons to be attached to the bonds, the manner of execution, the denomination, and the place of payment of the principal of and interest on the bonds, which may be at any bank, trust company, or securities depository within or outside the Commonwealth.
F. If any officer whose signature or a facsimile of whose signature appears on any bond or coupon ceases to be such officer before delivery of such bond or coupon, such signature or facsimile is valid and sufficient for all purposes as if such officer had remained in office until such delivery.
G. Notwithstanding any other provision of this chapter or any recitals in any bonds issued under the provisions of this chapter, all bonds of the Medical School are negotiable instruments under the laws of the Commonwealth.
H. The Medical School may (i) issue bonds in coupon or registered form or both; (ii) provide for (a) the registration of any coupon bonds as to principal alone and as to both principal and interest and (b) the reconversion of any bonds registered as to both principal and interest into coupon bonds; and (iii) issue bonds issued in registered form under a system of book-entry for recording the ownership and transfer of ownership of rights to receive payments of principal of, premium, if any, and interest on such bonds.
I. The Medical School may contract for the services of banks, trust companies, financial institutions, or other entities or persons within or outside the Commonwealth for the authentication, registration, transfer, exchange, and payment of the bonds or may perform such actions itself.
J. The Medical School may determine a price for its bonds and sell such bonds at public or private sale and for such price as it determines to be in the best interest of the Medical School.
K. Prior to the preparation of definitive bonds, the Medical School may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds are executed and available for delivery.
L. The Medical School may provide for the replacement of any bonds that are mutilated, destroyed, stolen, or lost.
M. The Medical School may issue bonds under the provisions of this chapter without obtaining the consent of any commission, board, bureau, or agency of the Commonwealth or any political subdivision and is not subject to any proceedings or conditions in the issuance of such bonds other than those set forth in this chapter.
N. The Medical School may issue or secure any bonds under the provisions of this chapter pursuant to (i) a trust indenture or other agreement by way of conveyance, deed of trust, or mortgage of any project or any other property of the Medical School, whether or not financed in whole or in part from the proceeds of such bonds; (ii) a trust or other agreement between the Medical School and either (a) any trust company or bank having the powers of a trust company within or outside the Commonwealth acting as corporate trustee or another agent for bondholders or a purchaser of any bonds or (b) a purchaser of any bond; or (iii) any combination of such conveyance, deed of trust, or mortgage and indenture, trust, or other agreement. Such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, may pledge or assign revenues, fees, rents, and other charges to be received. Such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, may contain such 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 (a) providing for the repossession and sale of any or part of any project by the Medical School or any trustees under any trust indenture or agreement upon any default under the lease or sale of such project and (b) setting forth (1) the duties of the Medical School in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of any project or other property of the Medical School, (2) the amounts of revenues, fees, rents, and other charges to be charged, (3) the collection of such revenues, fees, rents, and other charges, (4) the custody, safeguarding, and application of all moneys of the Medical School, and (5) conditions or limitations with respect to the issuance of additional bonds.
O. Any national bank with its main office in the Commonwealth or any other state or any bank or trust company incorporated under the laws of the Commonwealth or another state that acts as depository of the proceeds of bonds or other revenues of the Medical School may furnish indemnifying bonds or pledge such securities as may be required by the Medical School.
P. Each trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, may set forth the rights and remedies of the bondholders and any trustee or other agent for the bondholders, restrict the individual right of action by bondholders, and contain such other provisions as the Medical School deems reasonable and proper for the security of the bondholders, including provisions for the assignment of any rights of the Medical School in any project owned, operated, or controlled by, or leases or sales of any projects made by, the Medical School to a corporate trustee or other agent for bondholders or the purchaser of such bonds.
Q. All expenses incurred in carrying out the provisions of such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, relating to any project, including those to which the Medical School may not be a party, may be treated as a part of the cost of a project.
R. Bonds issued by the Medical School under the provisions of this chapter are securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, 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 are securities that may properly and legally be deposited with and received by any state officer or officer of a locality or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or obligations is authorized by law.
S. Any (i) holder of bonds issued under the provisions of this chapter or any coupons appertaining to such bonds and (ii) trustee or other agent for bondholders under any trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, except to the extent that the rights given in this subsection may be restricted by such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, may, either at law or in equity, by suit, action, injunction, mandamus, or other proceedings, protect and enforce any and all rights under the laws of the Commonwealth, granted by this chapter, or under such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, and enforce and compel the performance of all duties required by this chapter or such trust indenture, trust, or other agreement, or the resolution providing for the issuance of such bonds, to be performed by the Medical School or any officer or agent of the Medical School, including the fixing, charging, and collection of revenues, fees, rents, and other charges.
T. Any bond of the Medical School may be guaranteed or secured by a pledge of any (i) grant, contribution, or appropriation from a participating political subdivision, the Commonwealth, any political subdivision, agency, or instrumentality of the Commonwealth, any federal agency, or any unit, private corporation, copartnership, association, or individual; (ii) income or revenues of the Medical School; or (iii) mortgage of or deed of trust or other lien or security interest in any project or other property of the Medical School or any individual or entity referred to in clause (i). No member of the board or any person executing any bonds issued under the provisions of this chapter is liable personally on the bonds by reason of the issuance of such bonds.
U. No bond of the Medical School is a debt of the Commonwealth or any other political subdivision of the Commonwealth, and such bonds shall so state on their face. Neither the Commonwealth nor any political subdivision of the Commonwealth other than the Medical School is liable on the bonds. Such bonds are not payable out of any funds or properties of the Commonwealth or any political subdivision of the Commonwealth other than those of the Medical School. The bonds shall not constitute indebtedness within the meaning of any debt limitation or restriction on any locality in the Commonwealth.
V. Bonds of the Medical School are issued for an essential public and governmental purpose.
2016, c. 588.