22.1-166 - Purchase and sale of local school bonds.
§ 22.1-166. Purchase and sale of local school bonds.
The Authority is authorized to purchase local school bonds with any funds ofthe Authority available for such purpose, at public or private sale and forsuch price and on such terms as it shall determine. The Authority may pledgeto the payment of the interest on and the principal of any bonds of theAuthority all or any part of the local school bonds so purchased, includingpayments of principal and interest thereon as they shall become due. TheAuthority may also, subject to any such pledge, sell any such local schoolbonds so purchased and apply the proceeds of such sale in the purchase ofother like local school bonds or for such purpose and in such manner as shallbe provided by any resolution authorizing the issuance of bonds of theAuthority, or the Authority may transfer such proceeds to the Literary Fund.For the purpose of Article VII, Section 10 (b) of the Constitution ofVirginia, the Authority shall be deemed a state agency authorized to purchasebonds issued with the consent of the school board and the governing body ofthe county by or on behalf of a county or district thereof for capitalprojects for school purposes.
Notwithstanding the provisions of any general or special law to the contrary,any city completely surrounded by a county having the urban county executiveform of government may finance capital projects for school purposes throughthe Authority without the requirement of a voter referendum if the financingfor the capital project is requested by both the city council and the schoolboard.
The proceeds of all local school bonds issued pursuant to this chapter priorto July 1, 1975, may be used for any capital project for public schools asprovided in the resolution by which their issuance was authorized.
(Code 1950, § 22-29.6; 1962, c. 194; 1971, Ex. Sess., c. 87; 1972, c. 745;1975, c. 434; 1976, c. 491; 1980, c. 559; 1989, c. 456.)