                                 CODE OF VIRGINIA

TRUST AGREEMENT; BOND RESOLUTION (§ 15.2-5133)

In the discretion of the authority, any revenue bonds issued under the
provisions of this chapter may be secured by a trust agreement by and between
the authority and a corporate trustee, which may be any trust company or bank
having the powers of a trust company within or outside the Commonwealth. The
resolution authorizing the issuance of the bonds or the trust agreement may
pledge or assign the revenues to be received. The resolution or trust agreement
shall not convey or mortgage any stormwater control system or water or waste
system or any part thereof, or any improvement financed pursuant to § 15.2-5158
which is, or will be, dedicated to a public entity other than the authority
financing such improvement. However, a bond issued by a community development
authority pursuant to subdivision A 2 of § 15.2-5158 may pledge or assign a
mortgage in other real property or improvements not otherwise proscribed
hereunder and may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and proper and not
in violation of law. Such provisions may include covenants setting forth the
duties of the authority in relation to the acquisition, construction,
improvement, maintenance, operation, repair and insurance of the system or
systems for which such bonds are issued and provisions for the custody,
safeguarding and application of all moneys and for the employment of consulting
engineers in connection with such construction, reconstruction, or operation.
The resolution or trust agreement may set forth the rights and remedies of the
bondholders, and may restrict the individual right of action by bondholders as
is customary in trust agreements or trust indentures securing bonds or
debentures of corporations. The resolution or trust agreement may also contain
such other provisions as the authority deems reasonable and proper for the
security of the bondholders. Except as otherwise provided in this chapter, the
authority may provide for the payment of the proceeds of the sale of the bonds
and its revenues to such officer, board or depositary as it may designate for
the custody thereof, and for the method of disbursement thereof, with such
safeguards and restrictions as it may determine. All expenses incurred in
carrying out the provisions of the resolution or trust agreement may be treated
as part of the cost of operation.

HISTORY: Code 1950, § 15-764.21; 1950, p. 1323; 1962, c. 623, § 15.1-1259;
1993, c. 850; 1997, cc. 527, 573, 587; 2009, c. 473.