                                 CODE OF VIRGINIA

PLEDGE OF LOANS TO SECURE BONDS OF AUTHORITY (§ 10.1-603.37)

The Authority is empowered at any time and from time to time to 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 and premium, if any, and interest on any or all of the bonds, as
defined in § 62.1-199, of the Authority. The interests of the Fund in any
obligations so transferred shall be subordinate to the rights of the trustee
under the pledge. To the extent that funds are not available from other sources
pledged for such purpose, any payments of principal and interest received on the
assets transferred or held in trust may be applied by the trustee thereof to the
payment of the principal of and premium, if any, and interest on such bonds of
the Authority to which the obligations have been pledged, 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 and premium, if any, and interest on such bonds of the Authority.
Any assets of the Fund transferred in trust as set forth in this section and any
payments of principal, interest, or earnings received thereon shall remain part
of the Fund but shall be subject to the pledge to secure the bonds of the
Authority and shall be held by the trustee to which they are pledged until no
longer required for such purpose by the terms of the pledge. On or before
January 10 of each year, the Authority shall transfer, or shall cause the
trustee to transfer, to the Fund any assets transferred or held in trust as set
forth in this section that are no longer required to be held in trust pursuant
to the terms of the pledge.

HISTORY: 2022, cc. 739, 782.