                                 CODE OF VIRGINIA

TRUST INDENTURE OR AGREEMENT TO SECURE PAYMENT OF BONDS (§ 15.2-5609)

In the discretion of the authority, any bonds issued under the provisions of
this chapter may be secured by a trust indenture by way of conveyance, deed of
trust or mortgage of any project or any other property of the authority, whether
or not financed in whole or in part from the proceeds of such bonds, or 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 or by both such conveyance, deed of trust or mortgage
and indenture or trust agreement. Such trust indenture or agreement, or the
resolution providing for the issuance of such bonds may pledge or assign fees,
rents, charges and receipts, collected by, payable to or otherwise derived by
the authority, and all other moneys and income of whatever kind or character
collected by, payable to or otherwise derived from any project. Such trust
indenture or agreement, or resolution providing for the issuance of such bonds,
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,
including covenants setting forth the duties of the authority in relation to the
acquisition of property and the construction, improvement, maintenance, repair,
operation and issuance of any project or other property of the authority, and
the rates of fees, rents and other charges to be charged, and the custody,
safeguarding and application of all moneys of the authority, and conditions or
limitations with respect to the issuance of additional bonds. It shall be lawful
for any bank or trust company incorporated under the laws of the Commonwealth
which may act as depository of the proceeds of such bonds or of other revenues
of the authority to furnish indemnifying bonds or to pledge such securities as
may be required by the authority. Such trust indenture or agreement or
resolution may set forth the rights and remedies of the bondholders and of the
trustee, and may restrict the individual right of action by bondholders.
		In addition to the foregoing, such trust indenture or agreement or resolution
may contain such other provisions as the authority may deem reasonable and
proper for the security of the bondholders. All expenses incurred in carrying
out the provisions of such trust indenture or agreement or resolution may be
treated as a part of the cost of a project.

HISTORY: Code 1950, § 15-714.22; 1962, c. 393, § 10, § 15.1-1280; 1973, c.
238; 1997, c. 587.