WVC 31 -
CHAPTER 31. CORPORATIONS.
WVC 31 - 15 B-
ARTICLE 15B. INFRASTRUCTURE BONDS.
WVC 31 - 15 B- 1
For purposes of this article and article fifteen-a of this
(a) "Council" means the West Virginia infrastructure and jobs
development council created in section three, article fifteen-a of
(b) "Infrastructure amendment" means the amendment to the
constitution of this state entitled "infrastructure amendment" as
approved by referendum in the month of November, one thousand nine
(c) "Infrastructure general obligation bond" means any bond or
bonds issued by the state pursuant to section two of this article;
(d) "Water development authority" means the West Virginia
water development authority established under article one, chapter
twenty-two-c of this code, or any successor to all or any
substantial part of its powers and duties.
WVC 31 - 15 B- 2
§31-15B-2. Infrastructure general obligation bonds; amount; when
Bonds of the state of West Virginia, under authority of the
infrastructure improvement amendment of 1994, of the par value not
to exceed in the aggregate three hundred million dollars, are
hereby authorized to be issued and sold solely for the
construction, extension, expansion, rehabilitation, repair and
improvement of water supply and sewage treatment systems and for
the acquisition, preparation, construction and improvement of sites
for economic development as provided for by the constitution and
the provisions of this article.
These bonds may be issued by the governor upon resolution by
the infrastructure council and certification to the governor. The
bonds shall bear such date and mature at such time, bear interest
at such rate not to exceed eight percent per annum, be in such
amounts, be in such denominations, be in such registered form,
carry such registration privileges, be due and payable at such time
and place and in such amounts, and subject to such terms of
redemption as such resolution may provide: Provided, That in no
event may the amount of bonds outstanding exceed an amount for
which twenty-four million dollars would not be sufficient to
provide annual service on the total amount of debt outstanding.
Both the principal and interest of the bonds shall be payable
in the lawful money of the United States of America and the bonds
and the interest thereon shall be exempt from taxation by the state of West Virginia, or by any county, district or municipality
thereof, which fact shall appear on the face of the bonds as part
of the contract with the holder of the bond.
The bonds shall be executed on behalf of the state of West
Virginia, by the manual or facsimile signature of the treasurer
thereof, under the great seal of the state or a facsimile thereof,
and countersigned by the manual or facsimile signature of the
auditor of the state.
WVC 31 - 15 B- 3
§31-15B-3. Creation of debt service fund; disbursements to pay
debt service on infrastructure general obligation bonds.
There is hereby created a special account in the state
treasury, which shall be designated and known as the "West Virginia
Infrastructure General Obligation Debt Service Fund", into which
shall be deposited amounts pursuant to the provisions of section
sixteen, article fifteen-a of this chapter, as well as any amounts
appropriated by the Legislature.
WVC 31 - 15 B- 4
§31-15B-4. Infrastructure general obligation debt service fund;
sources used to pay bonds and interest; investment of remainder.
All money from any and all appropriations made by the state,
all moneys transferred pursuant to the provisions of section
sixteen, article fifteen-a of this chapter and all moneys from any
other source whatsoever which is made liable by law for the payment
of the principal of such bonds or the interest thereon shall be
deposited into the infrastructure general obligation debt service
fund. Moneys shall be kept by the treasurer in a separate account,
under the designation aforesaid, and all moneys belonging to the
infrastructure general obligation debt service fund shall be
deposited in the state treasury to the credit thereof.
This fund shall be applied by the treasurer to the payment of
the principal and interest on such bonds as shall become due as
herein provided. Any funds remaining after certification of the
amount necessary for the payment of principal and interest as
provided by section sixteen, article fifteen-a and expenses
authorized pursuant to section thirteen of this article shall be
deposited to the credit of the infrastructure fund.
WVC 31 - 15 B- 5
§31-15B-5. Covenants of state.
The state of West Virginia covenants and agrees with the
holders of the bonds issued pursuant hereto as follows: (1) That
such bonds shall constitute a direct and general obligation of the
state of West Virginia; (2) that the full faith and credit of the
state is hereby pledged to secure the payment of the principal and
interest of such bonds; (3) that an annual state tax shall be
collected in an amount sufficient to pay as it may accrue the
interest on such bonds and the principal thereof; and (4) that such
tax shall be levied in any year only to the extent that the moneys
transferred to the infrastructure general obligation debt service
fund as provided in section sixteen, article fifteen-a of this
chapter which are irrevocably set aside and appropriated for and
applied to the payment of the interest on and principal of any bond
becoming due and payable in such year are insufficient therefor.
WVC 31 - 15 B- 6
§31-15B-6. Sale by governor; minimum price.
The governor shall sell the bonds herein authorized at such
time or times as the council, by resolution, may determine
necessary to provide funds for purposes set forth in this article
and article fifteen-a of this chapter. Sales shall be at not less
than par and accrued interest.
The bonds must be offered for competitive bids from recognized
financial investment institutions before the bonds may be sold:
Provided, That the bid process is not subject to the provisions of
article three-a, chapter five-a of this code. Any and all of the
bids may be rejected. If the bonds are not sold pursuant to the
competitive bid process, the bonds may, within sixty days after the
date the bids are received, be sold at private sale: Provided,
however, That no private sale shall be made at a price less than
the highest bid received.
WVC 31 - 15 B- 7
§31-15B-7. Prohibition on funds inuring to the benefit of or being
distributable to directors or officers; transactions between the council and West Virginia water development authority and directors or officers having certain interests in such transactions.
No part of the infrastructure fund shall inure to the benefit
of or be distributable to the commissioners of the public service
commission, the council, or the West Virginia water development
authority's directors or officers. The council may approve and the
water development authority make loans and exercise other powers as
previously specified in furtherance of their corporate purpose:
That no loans shall be made, nor shall any property be
purchased or leased from, or sold, leased or otherwise disposed of,
to any commissioner, director or officer of the council, the public
service commission or the West Virginia water development
WVC 31 - 15 B- 8
§31-15B-8. Infrastructure bonds lawful investments.
All infrastructure bonds issued pursuant to this article shall
be lawful investments for banking institutions, societies for
savings, building and loan associations, savings and loan
associations, deposit guarantee associations, trust companies,
insurance companies, including domestic for life and domestic not
for life insurance companies.
WVC 31 - 15 B- 9
§31-15B-9. Refunding bonds.
Any infrastructure general obligation bonds which are
outstanding may at any time be refunded by the issuance of
refunding bonds in an amount deemed necessary to refund the
principal of the bonds to be refunded, together with any unpaid
interest thereon; to accomplish the purpose of this article and
article fifteen-a of this chapter; and to pay any premiums and
commissions necessary to be paid in connection therewith. Any
refunding may be effected whether the infrastructure general
obligation bonds to be refunded shall have then matured or shall
thereafter mature. Any refunding bonds issued pursuant to this
article shall be payable from the infrastructure general obligation
bond debt service fund, and shall be subject to the provisions
contained in section eleven, article fifteen-a of this chapter and
shall be secured in accordance with the provisions of this article.
WVC 31 - 15 B- 10
§31-15B-10. Termination or dissolution.
Upon the termination or dissolution of the West Virginia water
development authority, all rights and properties of the West
Virginia water development authority with respect to the
infrastructure fund shall pass to and be vested in the state,
subject to the rights of bondholders, lienholders and other
WVC 31 - 15 B- 11
§31-15B-11. Treasurer to determine financial advisor.
The treasurer shall select a competent person or firm to
serve as financial advisor for the issuance and sale of general
obligation bonds issued pursuant to this article.
WVC 31 - 15 B- 12
§31-15B-12. Governor to determine bond counsel.
The governor shall select a competent person or firm to serve
as bond counsel who shall be responsible for the issuance of a
final approving opinion regarding the legality of the sale of
general obligation bonds issued pursuant to this article.
Notwithstanding the provisions of article three, chapter five of
this code, bond counsel may represent the council in court, render
advice to the council and provide other legal services as may be
requested by the council regarding any bond issuance pursuant to
this article and all other matter relating to the bond issue.
WVC 31 - 15 B- 13
§31-15B-13. Approval and payment of all necessary expenses.
All necessary expenses, including legal expenses, incurred in
the issuance of any general obligation bonds pursuant to this
article shall be paid out of the infrastructure general obligation
debt service fund. The amount of any expenses incurred shall be
certified to the water development authority.