{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-2421.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-2421.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-2421.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-2421.html"}],"law_id":55443,"edition_id":1,"section_id":55443,"structure_id":13799,"section_number":"23.1-2421","catch_line":"Trust indentures and mortgages; security for the bonds","history":"1996, cc. 905, 1046, \u00a7 23-50.16:28; 2016, c. 588.","full_text":"A\n\nAny bond issued under this chapter may be issued pursuant to or secured by (i) a trust indenture, deed of trust, or mortgage of any project or other property of the Authority, whether or not financed in whole or in part from the proceeds of such bonds; (ii) a trust or other agreement with a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth or another agent for bondholders; or (iii) any combination of issuance or security set forth in clause (i) or (ii). Any such trust indenture or other agreement, or the resolution providing for the issuance of bonds, may pledge or assign fees, rents, and other charges to be received and contain reasonable, proper, and lawful provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants (a) providing for the collection and application of revenues and the repossession and sale of any project or other property by the Authority or any trustees under any trust indenture or agreement upon default; (b) setting forth duties of the Authority in relation to the acquisition, construction, maintenance, operation, and insurance of any project or other property of the Authority and the amount of fees, rents, and other charges to be charged; (c) providing for the collection of such fees, rents, and other charges and the custody, safeguarding, and application of all moneys of the Authority; (d) providing for the creation of sinking funds and the creation and maintenance of reserves; and (e) setting forth conditions or limitations with respect to incurring indebtedness or granting mortgages or other liens. Such trust indenture, trust, or other agreement or resolution may set forth the rights and remedies of the bondholders, trustee, or other agent for bondholders and restrict the individual right of action by bondholders.B\n\nThe Authority may grant mortgages, deeds of trust, security interests, and other liens on its real and personal property, including its accounts receivable, to secure bonds. All pledges of revenues of the Authority for payment of bonds are valid and binding from the time the pledge is made. The revenues pledged and received by the Authority are subject immediately to the lien of such pledge without any physical delivery of such pledge or further act. The lien of any such pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the Authority whether or not such parties have notice of the lien. The Authority may provide for the recording or filing of any mortgage, deed of trust, security interest, other lien, financing statement, or other instrument necessary or desirable to create, perfect, or evidence any lien created pursuant to this chapter.C\n\nIt is lawful for any bank or trust company within or outside the Commonwealth to (i) serve as depository of the proceeds of bonds or other revenues of the Authority, (ii) furnish indemnifying bonds, or (iii) pledge such securities as may be required by the Authority.D\n\nAll expenses incurred in carrying out the provisions of such trust indenture, agreement, resolution, or other agreements relating to any project, including those to which the Authority may not be a party, may be treated as a part of the costs of a project.","order_by":null,"text":{"0":{"id":203244,"text":"Any bond issued under this chapter may be issued pursuant to or secured by (i) a trust indenture, deed of trust, or mortgage of any project or other property of the Authority, whether or not financed in whole or in part from the proceeds of such bonds; (ii) a trust or other agreement with a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth or another agent for bondholders; or (iii) any combination of issuance or security set forth in clause (i) or (ii). Any such trust indenture or other agreement, or the resolution providing for the issuance of bonds, may pledge or assign fees, rents, and other charges to be received and contain reasonable, proper, and lawful provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants (a) providing for the collection and application of revenues and the repossession and sale of any project or other property by the Authority or any trustees under any trust indenture or agreement upon default; (b) setting forth duties of the Authority in relation to the acquisition, construction, maintenance, operation, and insurance of any project or other property of the Authority and the amount of fees, rents, and other charges to be charged; (c) providing for the collection of such fees, rents, and other charges and the custody, safeguarding, and application of all moneys of the Authority; (d) providing for the creation of sinking funds and the creation and maintenance of reserves; and (e) setting forth conditions or limitations with respect to incurring indebtedness or granting mortgages or other liens. Such trust indenture, trust, or other agreement or resolution may set forth the rights and remedies of the bondholders, trustee, or other agent for bondholders and restrict the individual right of action by bondholders.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":203245,"text":"The Authority may grant mortgages, deeds of trust, security interests, and other liens on its real and personal property, including its accounts receivable, to secure bonds. All pledges of revenues of the Authority for payment of bonds are valid and binding from the time the pledge is made. The revenues pledged and received by the Authority are subject immediately to the lien of such pledge without any physical delivery of such pledge or further act. The lien of any such pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the Authority whether or not such parties have notice of the lien. The Authority may provide for the recording or filing of any mortgage, deed of trust, security interest, other lien, financing statement, or other instrument necessary or desirable to create, perfect, or evidence any lien created pursuant to this chapter.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":203246,"text":"It is lawful for any bank or trust company within or outside the Commonwealth to (i) serve as depository of the proceeds of bonds or other revenues of the Authority, (ii) furnish indemnifying bonds, or (iii) pledge such securities as may be required by the Authority.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":203247,"text":"All expenses incurred in carrying out the provisions of such trust indenture, agreement, resolution, or other agreements relating to any project, including those to which the Authority may not be a party, may be treated as a part of the costs of a project.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13799,"edition_id":1,"name":"Virginia Commonwealth University Health System Authority","identifier":"24","label":"chapter","depth":3,"order_by":1,"parent_id":13798,"metadata":{},"date_created":"2026-06-26 03:45:54","date_modified":"2026-06-26 03:45:54","permalink":{"id":186325,"object_type":"structure","relational_id":13799,"identifier":"24","token":"23.1\/IV\/24","url":"\/23.1\/IV\/24\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13798,"edition_id":1,"name":"Public Institutions of Higher Education","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:45:54","date_modified":"2026-06-26 03:45:54","permalink":{"id":185925,"object_type":"structure","relational_id":13798,"identifier":"IV","token":"23.1\/IV","url":"\/23.1\/IV\/","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":65528,"structure_id":13799,"section_number":"23.1-2400","catch_line":"Definitions","url":"\/23.1-2400\/","token":"23.1\/IV\/24\/23.1-2400","metadata":false},{"id":87275,"structure_id":13799,"section_number":"23.1-2401","catch_line":"Authority established; powers, purposes, and duties","url":"\/23.1-2401\/","token":"23.1\/IV\/24\/23.1-2401","metadata":false},{"id":83861,"structure_id":13799,"section_number":"23.1-2402","catch_line":"Board of directors; membership; meetings; officers; employees","url":"\/23.1-2402\/","token":"23.1\/IV\/24\/23.1-2402","metadata":false},{"id":65699,"structure_id":13799,"section_number":"23.1-2403","catch_line":"Chief executive officer of the Authority","url":"\/23.1-2403\/","token":"23.1\/IV\/24\/23.1-2403","metadata":false},{"id":84554,"structure_id":13799,"section_number":"23.1-2404","catch_line":"Powers of the Authority","url":"\/23.1-2404\/","token":"23.1\/IV\/24\/23.1-2404","metadata":false},{"id":79075,"structure_id":13799,"section_number":"23.1-2405","catch_line":"Additional powers of the Authority; operation of projects","url":"\/23.1-2405\/","token":"23.1\/IV\/24\/23.1-2405","metadata":false},{"id":76209,"structure_id":13799,"section_number":"23.1-2406","catch_line":"Additional powers of the Authority; police","url":"\/23.1-2406\/","token":"23.1\/IV\/24\/23.1-2406","metadata":false},{"id":70929,"structure_id":13799,"section_number":"23.1-2407","catch_line":"Public purpose","url":"\/23.1-2407\/","token":"23.1\/IV\/24\/23.1-2407","metadata":false},{"id":69160,"structure_id":13799,"section_number":"23.1-2408","catch_line":"Moneys of the Authority","url":"\/23.1-2408\/","token":"23.1\/IV\/24\/23.1-2408","metadata":false},{"id":72231,"structure_id":13799,"section_number":"23.1-2409","catch_line":"Grants and loans from localities","url":"\/23.1-2409\/","token":"23.1\/IV\/24\/23.1-2409","metadata":false},{"id":84421,"structure_id":13799,"section_number":"23.1-2410","catch_line":"Audit","url":"\/23.1-2410\/","token":"23.1\/IV\/24\/23.1-2410","metadata":false},{"id":81759,"structure_id":13799,"section_number":"23.1-2411","catch_line":"Exemption from taxation","url":"\/23.1-2411\/","token":"23.1\/IV\/24\/23.1-2411","metadata":false},{"id":64806,"structure_id":13799,"section_number":"23.1-2412","catch_line":"Transfer of existing hospital facilities","url":"\/23.1-2412\/","token":"23.1\/IV\/24\/23.1-2412","metadata":false},{"id":67264,"structure_id":13799,"section_number":"23.1-2413","catch_line":"Capital projects","url":"\/23.1-2413\/","token":"23.1\/IV\/24\/23.1-2413","metadata":false},{"id":82926,"structure_id":13799,"section_number":"23.1-2414","catch_line":"Leases of property","url":"\/23.1-2414\/","token":"23.1\/IV\/24\/23.1-2414","metadata":false},{"id":79842,"structure_id":13799,"section_number":"23.1-2415","catch_line":"Employees of the Authority","url":"\/23.1-2415\/","token":"23.1\/IV\/24\/23.1-2415","metadata":false},{"id":54806,"structure_id":13799,"section_number":"23.1-2416","catch_line":"Retirement benefits for employees of the Authority","url":"\/23.1-2416\/","token":"23.1\/IV\/24\/23.1-2416","metadata":false},{"id":63807,"structure_id":13799,"section_number":"23.1-2417","catch_line":"Insurance for employees of the Authority","url":"\/23.1-2417\/","token":"23.1\/IV\/24\/23.1-2417","metadata":false},{"id":84438,"structure_id":13799,"section_number":"23.1-2418","catch_line":"Power to issue bonds","url":"\/23.1-2418\/","token":"23.1\/IV\/24\/23.1-2418","metadata":false},{"id":81901,"structure_id":13799,"section_number":"23.1-2419","catch_line":"Liability on bonds","url":"\/23.1-2419\/","token":"23.1\/IV\/24\/23.1-2419","metadata":false},{"id":79367,"structure_id":13799,"section_number":"23.1-2420","catch_line":"Form of bonds","url":"\/23.1-2420\/","token":"23.1\/IV\/24\/23.1-2420","metadata":false},{"id":55443,"structure_id":13799,"section_number":"23.1-2421","catch_line":"Trust indentures and mortgages; security for the bonds","url":"\/23.1-2421\/","token":"23.1\/IV\/24\/23.1-2421","metadata":false},{"id":62976,"structure_id":13799,"section_number":"23.1-2422","catch_line":"Remedies of obligees of Authority","url":"\/23.1-2422\/","token":"23.1\/IV\/24\/23.1-2422","metadata":false},{"id":83360,"structure_id":13799,"section_number":"23.1-2423","catch_line":"Bonds to be legal investments","url":"\/23.1-2423\/","token":"23.1\/IV\/24\/23.1-2423","metadata":false},{"id":82595,"structure_id":13799,"section_number":"23.1-2424","catch_line":"Existing bonds","url":"\/23.1-2424\/","token":"23.1\/IV\/24\/23.1-2424","metadata":false},{"id":76552,"structure_id":13799,"section_number":"23.1-2425","catch_line":"Confidential and public information","url":"\/23.1-2425\/","token":"23.1\/IV\/24\/23.1-2425","metadata":false},{"id":61120,"structure_id":13799,"section_number":"23.1-2426","catch_line":"Chapter liberally construed","url":"\/23.1-2426\/","token":"23.1\/IV\/24\/23.1-2426","metadata":false},{"id":73772,"structure_id":13799,"section_number":"23.1-2427","catch_line":"Exemptions","url":"\/23.1-2427\/","token":"23.1\/IV\/24\/23.1-2427","metadata":false},{"id":58579,"structure_id":13799,"section_number":"23.1-2428","catch_line":"Assets of Authority; reversion to University","url":"\/23.1-2428\/","token":"23.1\/IV\/24\/23.1-2428","metadata":false}],"previous_section":{"id":79367,"structure_id":13799,"section_number":"23.1-2420","catch_line":"Form of bonds","url":"\/23.1-2420\/","token":"23.1\/IV\/24\/23.1-2420","metadata":false},"next_section":{"id":62976,"structure_id":13799,"section_number":"23.1-2422","catch_line":"Remedies of obligees of Authority","url":"\/23.1-2422\/","token":"23.1\/IV\/24\/23.1-2422","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-2421\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapters 905<\/a> and 1046<\/a> 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. It has been modified 1 time. 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. That modification is as follows: in 2016, chapter 588<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":186411,"object_type":"law","relational_id":55443,"identifier":"23.1-2421","token":"23.1\/IV\/24\/23.1-2421","url":"\/23.1-2421\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-2421\/","token":"23.1\/IV\/24\/23.1-2421","dublin_core":{"Title":"Trust indentures and mortgages; security for the bonds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-2421","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any bond<\/span> issued under this chapter may be issued pursuant to or secured by (i) a trust indenture, deed of trust, or mortgage of any project<\/span> or other property of the Authority<\/span>, whether or not financed in whole or in part from the proceeds of such bonds<\/span><\/span>; (ii) a trust or other agreement with a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the Commonwealth or another agent for bondholders; or (iii) any combination of issuance or security set forth in clause (i) or (ii). Any such trust indenture or other agreement, or the resolution providing for the issuance of bonds<\/span><\/span>, may pledge or assign fees, rents, and other charges to be received and contain reasonable, proper, and lawful provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants (a) providing for the collection and application of revenues and the repossession and sale of any project<\/span> or other property by the Authority<\/span> or any trustees under any trust indenture or agreement upon default<\/span>; (b) setting forth duties of the Authority<\/span> in relation to the acquisition, construction, maintenance, operation, and insurance of any project<\/span> or other property of the Authority<\/span> and the amount of fees, rents, and other charges to be charged; (c) providing for the collection of such fees, rents, and other charges and the custody<\/span>, safeguarding, and application of all moneys of the Authority<\/span>; (d) providing for the creation of sinking funds and the creation and maintenance of reserves; and (e) setting forth conditions or limitations with respect to incurring indebtedness or granting mortgages or other liens<\/span>. Such trust indenture, trust, or other agreement or resolution may set forth the rights and remedies of the bondholders, trustee, or other agent for bondholders and restrict the individual right of action by bondholders. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Authority<\/span> may grant mortgages, deeds of trust, security interests, and other liens<\/span> on its real and personal property, including its accounts receivable, to secure bonds<\/span><\/span>. All pledges of revenues of the Authority<\/span> for payment of bonds<\/span><\/span> are valid and binding from the time the pledge is made. The revenues pledged and received by the Authority<\/span> are subject immediately to the lien<\/span> of such pledge without any physical delivery of such pledge or further act. The lien<\/span> of any such pledge is valid and binding against all parties having claims of any kind in tort<\/span>, contract<\/span>, or otherwise against the Authority<\/span> whether or not such parties have notice of the lien<\/span>. The Authority<\/span> may provide for the recording or filing of any mortgage, deed of trust, security interest, other lien<\/span>, financing statement, or other instrument necessary or desirable to create, perfect, or evidence<\/span> any lien<\/span> created pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> It is lawful for any bank or trust company within or outside the Commonwealth to (i) serve as depository of the proceeds of bonds<\/span><\/span> or other revenues of the Authority<\/span>, (ii) furnish indemnifying bonds<\/span><\/span>, or (iii) pledge such securities as may be required by the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> All expenses incurred in carrying out the provisions of such trust indenture, agreement, resolution, or other agreements relating to any project<\/span>, including those to which the Authority<\/span> may not be a party<\/span>, may be treated as a part of the costs<\/span> of a project<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTRUST INDENTURES AND MORTGAGES; SECURITY FOR THE BONDS (\u00a7 23.1-2421)\n\nA. Any bond issued under this chapter may be issued pursuant to or secured by\n(i) a trust indenture, deed of trust, or mortgage of any project or other\nproperty of the Authority, whether or not financed in whole or in part from the\nproceeds of such bonds; (ii) a trust or other agreement with a corporate\ntrustee, which may be any trust company or bank having the powers of a trust\ncompany within or outside the Commonwealth or another agent for bondholders; or\n(iii) any combination of issuance or security set forth in clause (i) or (ii).\nAny such trust indenture or other agreement, or the resolution providing for the\nissuance of bonds, may pledge or assign fees, rents, and other charges to be\nreceived and contain reasonable, proper, and lawful provisions for protecting\nand enforcing the rights and remedies of the bondholders, including covenants\n(a) providing for the collection and application of revenues and the\nrepossession and sale of any project or other property by the Authority or any\ntrustees under any trust indenture or agreement upon default; (b) setting forth\nduties of the Authority in relation to the acquisition, construction,\nmaintenance, operation, and insurance of any project or other property of the\nAuthority and the amount of fees, rents, and other charges to be charged; (c)\nproviding for the collection of such fees, rents, and other charges and the\ncustody, safeguarding, and application of all moneys of the Authority; (d)\nproviding for the creation of sinking funds and the creation and maintenance of\nreserves; and (e) setting forth conditions or limitations with respect to\nincurring indebtedness or granting mortgages or other liens. Such trust\nindenture, trust, or other agreement or resolution may set forth the rights and\nremedies of the bondholders, trustee, or other agent for bondholders and\nrestrict the individual right of action by bondholders.\n\nB. The Authority may grant mortgages, deeds of trust, security interests, and\nother liens on its real and personal property, including its accounts\nreceivable, to secure bonds. All pledges of revenues of the Authority for\npayment of bonds are valid and binding from the time the pledge is made. The\nrevenues pledged and received by the Authority are subject immediately to the\nlien of such pledge without any physical delivery of such pledge or further act.\nThe lien of any such pledge is valid and binding against all parties having\nclaims of any kind in tort, contract, or otherwise against the Authority whether\nor not such parties have notice of the lien. The Authority may provide for the\nrecording or filing of any mortgage, deed of trust, security interest, other\nlien, financing statement, or other instrument necessary or desirable to create,\nperfect, or evidence any lien created pursuant to this chapter.\n\nC. It is lawful for any bank or trust company within or outside the Commonwealth\nto (i) serve as depository of the proceeds of bonds or other revenues of the\nAuthority, (ii) furnish indemnifying bonds, or (iii) pledge such securities as\nmay be required by the Authority.\n\nD. All expenses incurred in carrying out the provisions of such trust indenture,\nagreement, resolution, or other agreements relating to any project, including\nthose to which the Authority may not be a party, may be treated as a part of the\ncosts of a project.\n\nHISTORY: 1996, cc. 905, 1046, \u00a7 23-50.16:28; 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}}