HB 328 Bonds issued for public educational institution projects.
Vincent F. Callahan, Jr. | all patrons    ...    notes
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Summary:
Bonds issued for public educational institution projects. Provides a pooled financing vehicle for public institutions of higher education through the Virginia College Building Authority (VCBA). The VCBA is authorized to issue revenue bonds to pay for projects at public colleges and universities. Currently, the VCBA is authorized to issue bonds to provide funds to purchase bonds issued by such institutions. Projects financed directly by the VCBA must be approved by the General Assembly and the institution's board of visitors. The VCBA may secure up to $300 million of its bonds with reserve funds pledged for the payment of the bonds, backed by the moral obligation pledge of the Commonwealth. Moneys appropriated to fund reserve funds will be repaid to the Commonwealth from excess VCBA funds. Educational institutions are authorized to pledge tuition, fees, and other revenues to provide funds for repayment of VCBA bonds. Under the bill's state aid intercept provision, if the Governor determines that an institution has defaulted on its obligations under VCBA bonds, he may direct the State Comptroller to pay the bondholders directly on behalf of the defaulting institution, and the amounts paid will be credited against the Commonwealth's appropriation to the defaulting institution. The bill also makes technical changes to provisions governing the issuance of bonds by public institutions of higher education.

Full text:
01/15/96  House: Presented & ordered printed 964640809  pdf

Status:
01/15/96  House: Presented & ordered printed 964640809
01/15/96  House: Referred to Committee on Appropriations
02/10/96  House: Passed by indefinitely in App. (13-Y 2-N)