15.2-2626 - Contracts concerning interest rates, currency, cash flow or other basis.
§ 15.2-2626. Contracts concerning interest rates, currency, cash flow orother basis.
A. Any locality may enter into any contract which the governing body of thelocality determines to be necessary or appropriate to place the obligation orinvestment of the locality, as represented by the bonds or the investment oftheir proceeds, in whole or in part, on the interest rate, cash flow or otherbasis desired by the locality, which contract may include without limitation,contracts commonly known as interest rate swap agreements, and futures orcontracts providing for payments based on levels of, or changes in, interestrates. These contracts or arrangements may be entered into by the locality inconnection with, or incidental to, entering into, or maintaining any (i)agreement which secures bonds or (ii) investment, or contract providing forinvestment, otherwise authorized by law. These contracts and arrangements maycontain such payment, security, default, remedy, and other terms andconditions as determined by the governing body of the locality, after givingdue consideration to the creditworthiness of the counterparty or otherobligated party, including any rating by any nationally recognized ratingagency, and any other criteria as may be appropriate.
B. Any money set aside and pledged to secure payments of bonds or any of thecontracts entered into pursuant to this section, may be invested inaccordance with Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 and may bepledged to and used to service any of the contracts or agreements enteredinto pursuant to this section.
(1991, c. 668, § 15.1-227.27; 1997, c. 587.)