                                 CODE OF VIRGINIA

TRUST INDENTURE; PROVISIONS APPLICABLE TO BOND RESOLUTION (§ 10.1-306)

Any issue of revenue bonds may be secured by a trust indenture by and between
the Director, in the name of the Commonwealth, and a corporate trustee, which
may be any trust company or bank having the powers of a trust company. The trust
indenture may pledge fees and charges to be received from the use of and for the
services rendered by any camp and recreational facilities to be acquired or
constructed from the proceeds of such revenue bonds, but no trust indenture
shall convey or mortgage any camping or recreational facilities or any part
thereof.
		Either the resolution providing for the issuance of revenue bonds or the trust
indenture may contain provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not in violation
of law, including covenants setting forth the duties of the Director in relation
to the acquisition, construction, improvement, maintenance, operation, repair
and insurance of such facilities, and the custody, safeguarding and application
of all moneys. The trust indenture may also provide that camping and
recreational facilities shall be acquired, constructed, enlarged or improved,
and paid for under the supervision and approval of consulting engineers employed
or designated by the Director, in the name of the Commonwealth, and satisfactory
to the original purchasers of the bonds issued. The trust indenture may further
require that the security given by contractors and by any depository of the
proceeds of the bonds or revenues of the camping and recreational facilities or
other moneys pertaining to the facilities be satisfactory to the purchasers. It
shall be lawful for any bank or trust company incorporated under the laws of
this Commonwealth to act as depository and to furnish indemnifying bonds or to
pledge securities required by the Director. Such indenture may set forth the
rights and remedies of the bondholders and of the trustee, and may restrict the
individual right of action of bondholders as is customary in trust indentures
securing bonds and debentures of corporations.
		In addition, the indenture may contain other provisions that the Director
deems reasonable and proper for the security of the bondholders.

HISTORY: Code 1950, § 10-105; 1986, c. 498; 1988, c. 891.