{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-1208.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-1208.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-1208.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-1208.html"}],"law_id":67521,"edition_id":1,"section_id":67521,"structure_id":15508,"section_number":"23.1-1208","catch_line":"Security for bonds","history":"1964, c. 607, \u00a7 23-30.29; 1966, c. 685; 1986, c. 597; 1996, cc. 672, 689; 2016, c. 588.","full_text":"A\n\nThe Authority may secure any bonds issued under the provisions of this article by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. Such trust indenture or the resolution providing for the issuance of such bonds may:1\n\nPledge or assign all or part of the funds of the Authority available for such purpose, including (i) payments of principal of and interest on bonds of eligible institutions purchased by the Authority; (ii) proceeds of the sale of any such bonds; (iii) payments of principal of and interest on obligations transferred to the Authority by the General Assembly or from other assets or moneys transferred to the Authority by the General Assembly or eligible institutions, including lease payments and other sources of revenue; (iv) proceeds of the sale of any such obligations or assets; (v) proceeds from the sale of bonds of the Authority; (vi) security interests granted by the Authority or any eligible institution in, or other liens on, equipment, whether such equipment has been leased or sold to an eligible institution; (vii) all or part of the payments due the Authority from eligible institutions under any lease, sale agreement, loan, or other agreement between the Authority and eligible institutions pursuant to &#xA7; 23.1-1206, and any funds realized from enforcing security for such payments; (viii) payments due under policies of bond insurance, letters of credit, or other credit enhancement securing payment of principal of and interest on bonds of the Authority; (ix) any moneys in any fund established pursuant to &#xA7; 23.1-1206; (x) any reserve or sinking fund created by the Authority to secure such bonds; and (xi) other available funds of the Authority;2\n\nPledge or assign any other rights of the Authority in equipment owned by, or leases or sales of equipment made by, the Authority;3\n\nContain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law;4\n\nProvide for the creation and maintenance of such reserves as the Authority determines to be proper;5\n\nInclude covenants setting forth the duties of the Authority in relation to the acquisition of any equipment or bonds of eligible institutions; the care, leasing, or sale of equipment to eligible institutions; the substitution of any bonds of eligible institutions, equipment, lease, security interest, or other security as security for the payment of the bonds of the Authority; the care, use, and insurance of equipment; the repossession and sale of leased or sold equipment by the Authority or the trustee under any trust indenture upon any default under the lease or sale of such equipment; and the collection of (i) payments due the Authority under leases or agreements of sale of equipment and (ii) payments of principal of and interest on any bonds of eligible institutions or obligations or other assets held by the Authority. Any bank or trust company incorporated under the laws of the Commonwealth that acts as depository of the proceeds of bonds or revenues may furnish such indemnifying bonds or pledge such securities as may be required by the Authority;6\n\nSet forth the rights and remedies of the bondholders and the trustee;7\n\nRestrict the individual right of action by bondholders; and8\n\nContain such other provisions as the Authority deems reasonable and proper for the security of the bondholders.B\n\nAll expenses incurred in carrying out the provisions of any such trust indenture or resolution may be treated as a part of the administration costs of the Authority.C\n\nNeither the resolution nor any trust indenture by which a pledge is created need be filed or recorded except in the records of the Authority.","order_by":null,"text":{"0":{"id":244649,"text":"The Authority may secure any bonds issued under the provisions of this article by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. Such trust indenture or the resolution providing for the issuance of such bonds may:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":244650,"text":"Pledge or assign all or part of the funds of the Authority available for such purpose, including (i) payments of principal of and interest on bonds of eligible institutions purchased by the Authority; (ii) proceeds of the sale of any such bonds; (iii) payments of principal of and interest on obligations transferred to the Authority by the General Assembly or from other assets or moneys transferred to the Authority by the General Assembly or eligible institutions, including lease payments and other sources of revenue; (iv) proceeds of the sale of any such obligations or assets; (v) proceeds from the sale of bonds of the Authority; (vi) security interests granted by the Authority or any eligible institution in, or other liens on, equipment, whether such equipment has been leased or sold to an eligible institution; (vii) all or part of the payments due the Authority from eligible institutions under any lease, sale agreement, loan, or other agreement between the Authority and eligible institutions pursuant to &#xA7; 23.1-1206, and any funds realized from enforcing security for such payments; (viii) payments due under policies of bond insurance, letters of credit, or other credit enhancement securing payment of principal of and interest on bonds of the Authority; (ix) any moneys in any fund established pursuant to &#xA7; 23.1-1206; (x) any reserve or sinking fund created by the Authority to secure such bonds; and (xi) other available funds of the Authority;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":244651,"text":"Pledge or assign any other rights of the Authority in equipment owned by, or leases or sales of equipment made by, the Authority;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":244652,"text":"Contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":244653,"text":"Provide for the creation and maintenance of such reserves as the Authority determines to be proper;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":244654,"text":"Include covenants setting forth the duties of the Authority in relation to the acquisition of any equipment or bonds of eligible institutions; the care, leasing, or sale of equipment to eligible institutions; the substitution of any bonds of eligible institutions, equipment, lease, security interest, or other security as security for the payment of the bonds of the Authority; the care, use, and insurance of equipment; the repossession and sale of leased or sold equipment by the Authority or the trustee under any trust indenture upon any default under the lease or sale of such equipment; and the collection of (i) payments due the Authority under leases or agreements of sale of equipment and (ii) payments of principal of and interest on any bonds of eligible institutions or obligations or other assets held by the Authority. Any bank or trust company incorporated under the laws of the Commonwealth that acts as depository of the proceeds of bonds or revenues may furnish such indemnifying bonds or pledge such securities as may be required by the Authority;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":244655,"text":"Set forth the rights and remedies of the bondholders and the trustee;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":244656,"text":"Restrict the individual right of action by bondholders; and","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":244657,"text":"Contain such other provisions as the Authority deems reasonable and proper for the security of the bondholders.","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"B"},"9":{"id":244658,"text":"All expenses incurred in carrying out the provisions of any such trust indenture or resolution may be treated as a part of the administration costs of the Authority.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A8","next_prefix":"C"},"10":{"id":244659,"text":"Neither the resolution nor any trust indenture by which a pledge is created need be filed or recorded except in the records of the Authority.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":15508,"edition_id":1,"name":"General Provisions; Powers and Duties","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":14345,"metadata":{},"date_created":"2026-06-26 03:55:39","date_modified":"2026-06-26 03:55:39","permalink":{"id":185737,"object_type":"structure","relational_id":15508,"identifier":"1","token":"23.1\/III\/12\/1","url":"\/23.1\/III\/12\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14345,"edition_id":1,"name":"Virginia College Building Authority","identifier":"12","label":"chapter","depth":3,"order_by":1,"parent_id":14060,"metadata":{},"date_created":"2026-06-26 03:47:49","date_modified":"2026-06-26 03:47:49","permalink":{"id":185735,"object_type":"structure","relational_id":14345,"identifier":"12","token":"23.1\/III\/12","url":"\/23.1\/III\/12\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14060,"edition_id":1,"name":"Management and Financing","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:46:44","date_modified":"2026-06-26 03:46:44","permalink":{"id":185513,"object_type":"structure","relational_id":14060,"identifier":"III","token":"23.1\/III","url":"\/23.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84904,"structure_id":15508,"section_number":"23.1-1200","catch_line":"Definitions; findings","url":"\/23.1-1200\/","token":"23.1\/III\/12\/1\/23.1-1200","metadata":false},{"id":72257,"structure_id":15508,"section_number":"23.1-1201","catch_line":"Virginia College Building Authority established","url":"\/23.1-1201\/","token":"23.1\/III\/12\/1\/23.1-1201","metadata":false},{"id":83905,"structure_id":15508,"section_number":"23.1-1202","catch_line":"Action by Authority may be authorized by resolution","url":"\/23.1-1202\/","token":"23.1\/III\/12\/1\/23.1-1202","metadata":false},{"id":77677,"structure_id":15508,"section_number":"23.1-1203","catch_line":"Powers of Authority generally","url":"\/23.1-1203\/","token":"23.1\/III\/12\/1\/23.1-1203","metadata":false},{"id":86522,"structure_id":15508,"section_number":"23.1-1204","catch_line":"Duties; administration of assets, moneys, or obligations","url":"\/23.1-1204\/","token":"23.1\/III\/12\/1\/23.1-1204","metadata":false},{"id":73472,"structure_id":15508,"section_number":"23.1-1205","catch_line":"Powers; purchase or sale of bonds or other obligations of eligible institutions","url":"\/23.1-1205\/","token":"23.1\/III\/12\/1\/23.1-1205","metadata":false},{"id":71767,"structure_id":15508,"section_number":"23.1-1206","catch_line":"Powers; acquisition or disposition of equipment","url":"\/23.1-1206\/","token":"23.1\/III\/12\/1\/23.1-1206","metadata":false},{"id":71770,"structure_id":15508,"section_number":"23.1-1207","catch_line":"Powers; bonds of Authority generally","url":"\/23.1-1207\/","token":"23.1\/III\/12\/1\/23.1-1207","metadata":false},{"id":67521,"structure_id":15508,"section_number":"23.1-1208","catch_line":"Security for bonds","url":"\/23.1-1208\/","token":"23.1\/III\/12\/1\/23.1-1208","metadata":false},{"id":69367,"structure_id":15508,"section_number":"23.1-1209","catch_line":"Reserve fund; limitations","url":"\/23.1-1209\/","token":"23.1\/III\/12\/1\/23.1-1209","metadata":false},{"id":80005,"structure_id":15508,"section_number":"23.1-1210","catch_line":"Payment on bonds; pledge of revenues","url":"\/23.1-1210\/","token":"23.1\/III\/12\/1\/23.1-1210","metadata":false},{"id":83226,"structure_id":15508,"section_number":"23.1-1211","catch_line":"Default on payments","url":"\/23.1-1211\/","token":"23.1\/III\/12\/1\/23.1-1211","metadata":false},{"id":81001,"structure_id":15508,"section_number":"23.1-1212","catch_line":"Investment of funds","url":"\/23.1-1212\/","token":"23.1\/III\/12\/1\/23.1-1212","metadata":false},{"id":80486,"structure_id":15508,"section_number":"23.1-1213","catch_line":"Enforcement of rights and duties by bondholder or trustee under trust indenture","url":"\/23.1-1213\/","token":"23.1\/III\/12\/1\/23.1-1213","metadata":false},{"id":67372,"structure_id":15508,"section_number":"23.1-1214","catch_line":"Exemption of bonds from taxation","url":"\/23.1-1214\/","token":"23.1\/III\/12\/1\/23.1-1214","metadata":false},{"id":86127,"structure_id":15508,"section_number":"23.1-1215","catch_line":"Bonds made lawful investments","url":"\/23.1-1215\/","token":"23.1\/III\/12\/1\/23.1-1215","metadata":false},{"id":86824,"structure_id":15508,"section_number":"23.1-1216","catch_line":"Annual report; examination of records, books, and accounts","url":"\/23.1-1216\/","token":"23.1\/III\/12\/1\/23.1-1216","metadata":false},{"id":69836,"structure_id":15508,"section_number":"23.1-1217","catch_line":"Annual audit","url":"\/23.1-1217\/","token":"23.1\/III\/12\/1\/23.1-1217","metadata":false},{"id":83690,"structure_id":15508,"section_number":"23.1-1218","catch_line":"Article liberally construed; powers of Authority not subject to supervision by certain entities","url":"\/23.1-1218\/","token":"23.1\/III\/12\/1\/23.1-1218","metadata":false},{"id":59107,"structure_id":15508,"section_number":"23.1-1219","catch_line":"Jurisdiction of suits against Authority; service of process","url":"\/23.1-1219\/","token":"23.1\/III\/12\/1\/23.1-1219","metadata":false}],"previous_section":{"id":71770,"structure_id":15508,"section_number":"23.1-1207","catch_line":"Powers; bonds of Authority generally","url":"\/23.1-1207\/","token":"23.1\/III\/12\/1\/23.1-1207","metadata":false},"next_section":{"id":69367,"structure_id":15508,"section_number":"23.1-1209","catch_line":"Reserve fund; limitations","url":"\/23.1-1209\/","token":"23.1\/III\/12\/1\/23.1-1209","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-1208\/","history_text":"<p>This law was first created in 1964. The record of its establishment is cataloged in chapter 607 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1964 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1966, chapter 685; in 1986, chapter 597; in 1996, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?961+ful+CHAP0672\">672<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?961+ful+CHAP0689\">689<\/a>; in 2016, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?161+ful+CHAP0588\">588<\/a>.<\/p>","references":false,"refers_to":[{"id":71767,"section_number":"23.1-1206","catch_line":"Powers; acquisition or disposition of equipment","order_by":null,"url":"\/23.1-1206\/"}],"permalink":{"id":185771,"object_type":"law","relational_id":67521,"identifier":"23.1-1208","token":"23.1\/III\/12\/1\/23.1-1208","url":"\/23.1-1208\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-1208\/","token":"23.1\/III\/12\/1\/23.1-1208","dublin_core":{"Title":"Security for bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-1208","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> The Authority may secure any <span class=\"dictionary\">bonds<\/span> issued under the provisions of this article by a trust indenture by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth. Such trust indenture or the resolution providing for the issuance of such <span class=\"dictionary\">bonds<\/span> may: <a id=\"paragraph-244649\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> Pledge or assign all or part of the funds of the Authority available for such purpose, including (i) payments of principal of and interest on <span class=\"dictionary\">bonds<\/span> of eligible institutions purchased by the Authority; (ii) proceeds of the sale of any such <span class=\"dictionary\">bonds<\/span>; (iii) payments of principal of and interest on obligations transferred to the Authority by the General Assembly or from other <span class=\"dictionary\">assets<\/span> or moneys transferred to the Authority by the General Assembly or eligible institutions, including lease payments and other sources of revenue; (iv) proceeds of the sale of any such obligations or <span class=\"dictionary\">assets<\/span>; (v) proceeds from the sale of <span class=\"dictionary\">bonds<\/span> of the Authority; (vi) security interests granted by the Authority or any eligible institution in, or other <span class=\"dictionary\">liens<\/span> on, equipment, whether such equipment has been leased or sold to an eligible institution; (vii) all or part of the payments due the Authority from eligible institutions under any lease, sale agreement, loan, or other agreement between the Authority and eligible institutions pursuant to &#xA7; <a class=\"law\" title=\"Powers; acquisition or disposition of equipment\" href=\"\/23.1-1206\/\">23.1-1206<\/a>, and any funds realized from enforcing security for such payments; (viii) payments due under policies of <span class=\"dictionary\">bond<\/span> insurance, letters of credit, or other credit enhancement securing payment of principal of and interest on <span class=\"dictionary\">bonds<\/span> of the Authority; (ix) any moneys in any fund established pursuant to &#xA7; <a class=\"law\" title=\"Powers; acquisition or disposition of equipment\" href=\"\/23.1-1206\/\">23.1-1206<\/a>; (x) any reserve or sinking fund created by the Authority to secure such <span class=\"dictionary\">bonds<\/span>; and (xi) other available funds of the Authority; <a id=\"paragraph-244650\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> Pledge or assign any other rights of the Authority in equipment owned by, or leases or sales of equipment made by, the Authority; <a id=\"paragraph-244651\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> Contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of <span class=\"dictionary\">law<\/span>; <a id=\"paragraph-244652\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A4\" class=\"indent-1\"><p><span class=\"prefix-number\">4.<\/span> Provide for the creation and maintenance of such reserves as the Authority determines to be proper; <a id=\"paragraph-244653\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A5\" class=\"indent-1\"><p><span class=\"prefix-number\">5.<\/span> Include covenants setting forth the duties of the Authority in relation to the acquisition of any equipment or <span class=\"dictionary\">bonds<\/span> of eligible institutions; the care, leasing, or sale of equipment to eligible institutions; the substitution of any <span class=\"dictionary\">bonds<\/span> of eligible institutions, equipment, lease, security interest, or other security as security for the payment of the <span class=\"dictionary\">bonds<\/span> of the Authority; the care, use, and insurance of equipment; the repossession and sale of leased or sold equipment by the Authority or the trustee under any trust indenture upon any <span class=\"dictionary\">default<\/span> under the lease or sale of such equipment; and the collection of (i) payments due the Authority under leases or agreements of sale of equipment and (ii) payments of principal of and interest on any <span class=\"dictionary\">bonds<\/span> of eligible institutions or obligations or other <span class=\"dictionary\">assets<\/span> held by the Authority. Any bank or trust company incorporated under the <span class=\"dictionary\">laws<\/span> of the Commonwealth that acts as depository of the proceeds of <span class=\"dictionary\">bonds<\/span> or revenues may furnish such indemnifying <span class=\"dictionary\">bonds<\/span> or pledge such securities as may be required by the Authority; <a id=\"paragraph-244654\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A5\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A6\" class=\"indent-1\"><p><span class=\"prefix-number\">6.<\/span> Set forth the rights and remedies of the bondholders and the trustee; <a id=\"paragraph-244655\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A6\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A7\" class=\"indent-1\"><p><span class=\"prefix-number\">7.<\/span> Restrict the individual right of action by bondholders; and <a id=\"paragraph-244656\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A7\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A8\" class=\"indent-1\"><p><span class=\"prefix-number\">8.<\/span> Contain such other provisions as the Authority deems reasonable and proper for the security of the bondholders. <a id=\"paragraph-244657\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#A8\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> All expenses incurred in carrying out the provisions of any such trust indenture or resolution may be treated as a part of the administration costs of the Authority. <a id=\"paragraph-244658\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> Neither the resolution nor any trust indenture by which a pledge is created need be filed or recorded except in the records of the Authority. <a id=\"paragraph-244659\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/23.1-1208\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nSECURITY FOR BONDS (\u00a7 23.1-1208)\n\nA. The Authority may secure any bonds issued under the provisions of this\narticle by a trust indenture by and between the Authority and a corporate\ntrustee, which may be any trust company or bank having the powers of a trust\ncompany within or outside the Commonwealth. Such trust indenture or the\nresolution providing for the issuance of such bonds may:\n\n   1. Pledge or assign all or part of the funds of the Authority available for\n   such purpose, including (i) payments of principal of and interest on bonds of\n   eligible institutions purchased by the Authority; (ii) proceeds of the sale of\n   any such bonds; (iii) payments of principal of and interest on obligations\n   transferred to the Authority by the General Assembly or from other assets or\n   moneys transferred to the Authority by the General Assembly or eligible\n   institutions, including lease payments and other sources of revenue; (iv)\n   proceeds of the sale of any such obligations or assets; (v) proceeds from the\n   sale of bonds of the Authority; (vi) security interests granted by the\n   Authority or any eligible institution in, or other liens on, equipment,\n   whether such equipment has been leased or sold to an eligible institution;\n   (vii) all or part of the payments due the Authority from eligible institutions\n   under any lease, sale agreement, loan, or other agreement between the\n   Authority and eligible institutions pursuant to &#xA7; 23.1-1206, and any\n   funds realized from enforcing security for such payments; (viii) payments due\n   under policies of bond insurance, letters of credit, or other credit\n   enhancement securing payment of principal of and interest on bonds of the\n   Authority; (ix) any moneys in any fund established pursuant to &#xA7;\n   23.1-1206; (x) any reserve or sinking fund created by the Authority to secure\n   such bonds; and (xi) other available funds of the Authority;\n\n   2. Pledge or assign any other rights of the Authority in equipment owned by,\n   or leases or sales of equipment made by, the Authority;\n\n   3. Contain such provisions for protecting and enforcing the rights and\n   remedies of the bondholders as may be reasonable and proper and not in\n   violation of law;\n\n   4. Provide for the creation and maintenance of such reserves as the Authority\n   determines to be proper;\n\n   5. Include covenants setting forth the duties of the Authority in relation to\n   the acquisition of any equipment or bonds of eligible institutions; the care,\n   leasing, or sale of equipment to eligible institutions; the substitution of\n   any bonds of eligible institutions, equipment, lease, security interest, or\n   other security as security for the payment of the bonds of the Authority; the\n   care, use, and insurance of equipment; the repossession and sale of leased or\n   sold equipment by the Authority or the trustee under any trust indenture upon\n   any default under the lease or sale of such equipment; and the collection of\n   (i) payments due the Authority under leases or agreements of sale of equipment\n   and (ii) payments of principal of and interest on any bonds of eligible\n   institutions or obligations or other assets held by the Authority. Any bank or\n   trust company incorporated under the laws of the Commonwealth that acts as\n   depository of the proceeds of bonds or revenues may furnish such indemnifying\n   bonds or pledge such securities as may be required by the Authority;\n\n   6. Set forth the rights and remedies of the bondholders and the trustee;\n\n   7. Restrict the individual right of action by bondholders; and\n\n   8. Contain such other provisions as the Authority deems reasonable and proper\n   for the security of the bondholders.\n\nB. All expenses incurred in carrying out the provisions of any such trust\nindenture or resolution may be treated as a part of the administration costs of\nthe Authority.\n\nC. Neither the resolution nor any trust indenture by which a pledge is created\nneed be filed or recorded except in the records of the Authority.\n\nHISTORY: 1964, c. 607, \u00a7 23-30.29; 1966, c. 685; 1986, c. 597; 1996, cc. 672,\n689; 2016, c. 588.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}