                                 CODE OF VIRGINIA

PROVISIONS OF RESOLUTION OR TRUST INDENTURE AUTHORIZING ISSUANCE OF BONDS (§
62.1-209)

A. Bonds may be secured by a trust indenture between the Authority and a
corporate trustee, which may be any bank having the power of a trust company or
any trust company within or without the Commonwealth. A trust indenture may
contain provisions for protecting and enforcing the rights and remedies of the
bondholders that are reasonable and proper and not in violation of law,
including covenants setting forth the duties of the Authority in relation to the
exercise of its powers and the custody, safekeeping and application of all
money. The Authority may provide by the trust indenture for the payment of the
proceeds of the bonds and all or any part of the revenues of the Authority to
the trustee under the trust indenture or to some other depository, and for the
method of their disbursement with whatever safeguards and restrictions as the
Authority specifies. All expenses incurred in carrying out the trust indenture
may be treated as part of the operating expenses of the Authority.

B. Any resolution or trust indenture pursuant to which bonds are issued may
contain provisions, which shall be part of the contract or contracts with the
holders of such bonds as to:

   1. Pledging all or any part of the revenue of the Authority to secure the
   payment of the bonds, subject to any agreements with bondholders that then
   exist;

   2. Pledging all or any part of the assets of, or funds under control of the
   Authority, including local obligations owned by the Authority, to secure the
   payment of the bonds, subject to any agreements with bondholders that then
   exist;

   3. The use and disposition of the gross income from, and payment of the
   principal of and premium, if any, and interest on local obligations owned by
   the Authority;

   4. The establishment of reserves, sinking funds and other funds and accounts
   and the regulation and disposition thereof;

   5. Limitations on the purposes to which the proceeds from the sale of the
   bonds may be applied, and limitations pledging the proceeds to secure the
   payment of the bonds;

   6. Limitations on the issuance of additional bonds, the terms on which
   additional bonds may be issued and secured, and the refunding of outstanding
   or other bonds;

   7. The procedure, if any, by which the terms of any contract with bondholders
   may be amended or abrogated, the amount of bonds, if any, the holders of which
   must consent thereto, and the manner in which any consent may be given;

   8. Limitations on the amount of money to be expended by the Authority for
   operating expenses of the Authority;

   9. Vesting in a trustee or trustees any property, rights, powers and duties in
   trust that the Authority may determine, and limiting or abrogating the right
   of bondholders to appoint a trustee or limit the rights, powers and duties of
   the trustees;

   10. Defining the acts or omissions which shall constitute a default, the
   obligations or duties of the Authority to the holders of the bonds, and the
   rights and remedies of the holders of the bonds in the event of default,
   including as a matter of right the appointment of a receiver; these rights and
   remedies may include the general laws of the Commonwealth and other provisions
   of this chapter;

   11. Requiring the Authority or the trustees under the trust indenture to file
   a petition with the Governor and to take any and all other actions required
   under &#xA7; 15.2-2659 or 62.1-216.1 to obtain payment of all unpaid sums on
   local obligations owned by the Authority or held by a trustee to which &#xA7;
   15.2-2659 or &#xA7; 62.1-216.1 shall be applicable; and

   12. Any other matter, of like or different character, relating to the terms of
   the bonds or the security or protection of the holders of the bonds.

HISTORY: 1984, c. 699; 1986, c. 415; 1997, c. 319; 1998, c. 399; 2003, c. 561;
2011, c. 616.