                                 CODE OF VIRGINIA

PROVISIONS OF BONDS AND TRUST INDENTURES (§ 15.2-5356)

In connection with the issuance of bonds or the incurring of any obligations and
in order to secure the payment of such bonds or obligations, the authority shall
have power:

1. To pledge by resolution, trust indenture, or other contract, all or any part
of its rents, fees, or revenues.

2. To covenant to impose and maintain such schedule of fees and charges as will
produce funds sufficient to pay operating costs and debt service.

3. To covenant with respect to limitations on its right to sell, lease or
otherwise dispose of any hospital project or other property of the authority or
any part thereof or with respect to limitations on its right to undertake
additional hospital projects.

4. To covenant against pledging all or any part of its rents, fees and revenues
to which its right then exists or the right to which may thereafter come into
existence or against permitting or suffering any lien thereon.

5. To provide for the release of rents, fees, and revenues from any pledge and
reserve rights and powers in, or the right to dispose of, property, the rents,
fees and revenues from which are subject to a pledge.

6. To covenant as to the bonds to be issued pursuant to any resolution, trust
indenture, or other instrument and as to the issuance of such bonds in escrow or
otherwise, and as to the use and disposition of the proceeds thereof.

7. To covenant as to what other, or additional, debt may be incurred by it.

8. To provide for the terms, form, registration, exchange, execution and
authentication of bonds.

9. To provide for the replacement of lost, destroyed, or mutilated bonds.

10. To covenant as to the use of any or all of its property, real or personal.

11. To create or authorize the creation of special funds in which there shall be
segregated: (i) the proceeds of any loan or grant; (ii) all of the rents, fees
and revenues of any hospital project or projects or parts thereof; (iii) any
moneys held for the payment of the costs of operation and maintenance of any
such hospital projects or as a reserve for the meeting of contingencies in the
operation and maintenance thereof; (iv) any moneys held for the payment of the
principal and interest on its bonds or the sums due under its leases or as a
reserve for such payments; and (v) any moneys held for any other reserve or
contingency; and to covenant as to the use and disposal of the moneys held in
such funds.

12. To redeem the bonds and covenant for their redemption and provide the terms
and conditions thereof.

13. To covenant against extending the time for the payment of its bonds or
interest thereon, directly or indirectly, by any means or in any manner.

14. To prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of
which must consent thereto and the manner in which such consent may be given.

15. To covenant as to the maintenance of its property, the replacement thereof,
the insurance to be carried thereon and the use and disposition of insurance
moneys.

16. To vest in an obligee of the authority the right, in the event of the
failure of the authority, to observe or perform any covenant on its part to be
kept or performed, cure any such default and advance any moneys necessary for
such purpose. The moneys so advanced may be made an additional obligation of the
authority with such interest, security and priority as may be provided in any
trust indenture, lease or contract of the authority with reference thereto.

17. To covenant and prescribe as to the events of default and terms and
conditions upon which any or all of its bonds shall become or may be declared
due before maturity and as to the terms and conditions upon which such
declaration and its consequences may be waived.

18. To covenant as to the rights, liabilities, powers and duties arising upon
the breach by it of any covenant, condition, or obligation.

19. To covenant to surrender possession of all or any part of any hospital
project or other property of the authority, the revenues from which have been
pledged, upon the happening of any event of default (as defined in the contract)
and to vest in an obligee the right without judicial proceeding to take
possession; to use, operate, manage and control such hospital project or other
property or any part thereof; to collect and receive all rents, fees and
revenues arising therefrom in the same manner as the authority itself might do;
and to dispose of the moneys collected in accordance with the agreement of the
authority with such obligee.

20. To vest in a trustee or trustees the right to enforce any covenant made to
secure, to pay, or in relation to the bonds, to provide for the powers and
duties of such trustee or trustees, to limit liabilities thereof and to provide
the terms and conditions upon which the trustee or trustees or the holders of
bonds or any proportion of them may enforce any such covenant.

21. To make covenants other than and in addition to the covenants herein
expressly authorized, of like or different character.

22. To execute all instruments necessary or convenient in the exercise of the
powers herein granted or in the performance of its covenants or duties, which
may contain such covenants and provisions, in addition to those above specified,
as the government or any purchaser of the bonds of the authority may reasonably
require.

23. To make such covenants and to do any and all such acts and things as may be
necessary or convenient or desirable in order to secure its bonds or, in the
absolute discretion of the authority, tend to make the bonds more marketable,
notwithstanding that such covenants, acts or things may not be enumerated
herein. It is the intention hereof to give the authority power to do all things
in the issuance of bonds and in the provisions for their security that are not
inconsistent with the Constitution of Virginia.

HISTORY: Code 1950, § 32-271; 1973, c. 462, § 15.1-1591; 1979, c. 719; 1997,
c. 587.