                                 CODE OF VIRGINIA

PROVISIONS FOR SECURING PAYMENT OF BONDS (§ 15.2-6315)

In order to secure the payment of such bonds, the authority shall have power by
provision or provisions included in any resolution authorizing said bonds or in
any indenture made to secure their payment:

1. To pledge all or any part of its gross or net rents, fees or revenues to
which its right then exists or may thereafter come into existence.

2. To mortgage all or any part of its real or personal property, then owned or
thereafter acquired.

3. To covenant against pledging all or any part of its rents, fees and revenues,
or against mortgaging all or any part of its real or personal property to which
its right or title then exists or may thereafter come into existence or against
permitting or suffering any lien on such revenues or property; to covenant with
respect to limitations on its right to sell, lease or otherwise dispose of any
property or any part thereof; and to covenant as to what other or additional
debts or obligations may be incurred by it.

4. To covenant as to the bonds to be issued and as to the issuance of such bonds
in escrow or otherwise, and as to the use and disposition of the proceeds
thereof; to provide for the replacement of lost, destroyed or mutilated bonds;
to covenant against extending the time of the payment of its bonds or interest
thereon; and to redeem the bonds, and to covenant for their redemption and to
provide the terms and conditions thereof.

5. To covenant as to the rents and fees to be charged in the operation of a
specific project or facility, the amount to be raised each year or other period
of time by rents, fees, and other revenues, and as to the use and disposition to
be made thereof; to create or to authorize the creation of special funds for
moneys held for construction or operating costs, debt service, reserves, or
other purposes, and to covenant as to the use and disposition of the moneys held
in such funds.

6. 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.

7. To covenant as to the use of any or all of its real or personal property; and
to covenant as to the maintenance of its real and personal property, the
replacement thereof, the insurance to be carried thereon and the use and
disposition of insurance moneys.

8. To covenant as to the rights, liabilities, powers and duties arising upon the
breach by it of any covenant, condition, or obligation; and to covenant and
prescribe as to events of default and terms and conditions upon which any or all
of its bonds or obligations 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.

9. To vest in a trustee or trustees or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants securing or
relating to the bonds; to vest in a trustee or trustees the right, in the event
of a default by the authority, to take possession and use, operate and manage
any property or part thereof, and to collect the rents and revenues arising
therefrom and to dispose of such moneys in accordance with the agreement of the
authority with said trustee; to provide for the powers and duties of a trustee
or trustees and to limit the liabilities thereof; and to provide the terms and
conditions upon which the trustee or trustees or the holders of bonds or any
portion of them may enforce any covenant or rights securing or relating to the
bonds.

10. To exercise all or any part or combination of the powers herein granted; and
to make covenants other than and in addition to the covenants herein expressly
authorized, of like or different character; to make such covenant 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 as
will tend to make the bonds more marketable notwithstanding that such covenants,
acts or things may not be enumerated herein.

HISTORY: Code 1950, § 15-953; 1954, c. 645; 1962, c. 623, § 15.1-1336; 1997,
c. 587.