                                 CODE OF VIRGINIA

COVENANTS RELATING TO ISSUANCE OF REVENUE BONDS (§ 15.2-2609)

The governing body of any locality proposing to issue bonds for any
revenue-producing undertaking may covenant in the ordinance, resolution, trust
agreement, indenture or other instrument providing for the issuance of the bonds
that the rates, rents, fees or other charges for the services and facilities
furnished by, for the use of, or in connection with the undertaking shall be
fixed and maintained at the level that will produce sufficient revenue to pay
the cost of operation and administration, the cost of insurance against loss by
injury to persons or property, and the principal of and premium, if any, and
interest on the bonds when due and payable, and to provide reserves for such
purposes. The ordinance, resolution, trust agreement, indenture or other
instrument, in order to assure the faithful observance of such covenant, may
provide for the creation of a commission, or the appointment of a receiver,
vested with such powers as to the management of the undertaking, or the fixing
of rates, rents, fees or other charges, or both, as the governing body may deem
proper.

HISTORY: Code 1950, § 15-666.27; 1958, c. 640; 1962, c. 623, § 15.1-184; 1991,
c. 668, § 15.1-227.11; 1997, c. 587.