                                 CODE OF VIRGINIA

TRUST INDENTURE OR AGREEMENT SECURING BONDS (§ 2.2-2206)

In the discretion of the Authority, any bonds issued under the provisions of
this article may be secured by a trust indenture or 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 without the Commonwealth. The trust
indenture or agreement or the resolution providing for the issuance of the bonds
may (i) pledge or assign the revenues to be received and provide for the
mortgage of any project or property or any part thereof and (ii) contain
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 providing for the repossession and sale by the Authority or
any trustees under any trust indenture or agreement of any project, or part
thereof, upon any default under the lease or sale of such project, setting forth
the duties of the Authority in relation to the acquisition of property and the
planning, development, acquisition, construction, rehabilitation, establishment,
improvement, extension, enlargement, maintenance, repair, operation and
insurance of the project in connection with which the bonds shall have been
authorized; the amounts of rates, rents, fees and other charges to be charged;
the collection of such rates, rents, fees and other charges; the custody,
safeguarding and application of all moneys; and conditions or limitations with
respect to the issuance of additional bonds. It shall be lawful for any national
bank with its main office in the Commonwealth or any other state or any bank or
trust company incorporated under the laws of the Commonwealth or another state
that may act as depository of the proceeds of bonds or of revenues to furnish
the indemnifying bonds or to pledge the securities required by the Authority.
Any trust indenture or agreement or resolution may set forth the rights of
action by bondholders. In addition to the foregoing, any 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 including,
without limitation, provisions for the assignment to a corporate trustee or
escrow agent of any rights of the Authority in any project owned by, or leases
or sales of any projects made by, the Authority. All expenses incurred in
carrying out the provisions of the trust indenture or agreement or resolution or
other agreements relating to any project, including those to which the Authority
may not be a party, may be treated as a part of the cost of the operation of the
project or projects.

HISTORY: 1995, c. 758, § 9-266.7; 2001, c. 844.