                                 CODE OF VIRGINIA

PLEDGE OF LOANS TO SECURE BONDS OF AUTHORITY (§ 10.1-603.22:1)

The Authority is empowered at any time and from time to time to pledge, assign,
or transfer from the Fund to banks or trust companies designated by the
Authority any or all of the assets of the Fund to be held in trust as security
for the payment of the principal of, premium, if any, and interest on any or all
of the bonds, as defined in § 62.1-199, issued to finance any project. The
interests of the Fund in any assets so transferred shall be subordinate to the
rights of the trustee under the pledge, assignment, or transfer. To the extent
funds are not available from other sources pledged for such purpose, any of the
assets or payments of principal and interest received on the assets pledged,
assigned, or transferred or held in trust may be applied by the trustee thereof
to the payment of the principal of, premium, if any, and interest on such bonds
of the Authority secured thereby, and, if such payments are insufficient for
such purpose, the trustee is empowered to sell any or all of such assets and
apply the net proceeds from the sale to the payment of the principal of,
premium, if any, and interest on such bonds of the Authority. Any assets of the
Fund pledged, assigned, or transferred in trust as set forth above and any
payments of principal, interest, or earnings received thereon shall remain part
of the Fund but shall be subject to the pledge, assignment, or transfer to
secure the bonds of the Authority and shall be held by the trustee to which they
are pledged, assigned, or transferred until no longer required for such purpose
by the terms of the pledge, assignment, or transfer.

HISTORY: 2006, cc. 648, 765.