All debt issued by the University must be authorized through a BOV
resolution. If tax-exempt bonds are to be issued, the BOV also approves
an Intent to Issue Resolution. Additionally, the BOV establishes
financing parameters for each debt issuance.
The University issues debt, in its own behalf, under
Chapter 3 of Title 23 of the Virginia Code or non-State Tax Supported
Debt under the State’s Restructured Higher Education Financial and
Administrative Operations Act of 2005, Chapter 4.10 of Title 23 (the
“Restructuring Act”). For debt issued under Chapter 3 of Title 23, the
University complies with all statutory requirements for State and BOV
approval. For debt issued under the Restructuring Act, the University
complies with all statutory and regulatory requirements including
notifying the State Treasurer of each such bond issuance. For debt
issued under the Restructuring Act, the BOV delegates the authority to
approve the pricing of such debt to the VP & CFO with the Chair
of the Finance Committee or such other BOV member as may be designated
by the Rector. Such pricing must be within the financing parameters
established for the debt by the BOV (or the Executive Committee as
authorized by Virginia Code § 23-75.)
When the University participates in bond programs that are administered
by the State, including State tax-supported debt, such bonds are issued
by the State Treasurer, who also possesses the authority to price such
bonds.
