                                 CODE OF VIRGINIA

POWERS; SECURITY FOR REVENUE BONDS (§ 23.1-1228)

A. The Authority may secure any revenue bonds issued under the provisions of
this article by a trust agreement between the Authority and a corporate trustee
that may be any trust company or bank having the powers of a trust company
within or outside the Commonwealth. Such trust agreement or the resolution
providing for the issuance of such revenue bonds may (i) pledge or assign the
revenues to be received or proceeds of any contract pledged, (ii) convey or
mortgage the project or any portion of the project, or (iii) contain provisions
for protecting and enforcing the rights and remedies of the bondholders that the
Authority deems reasonable and proper and are not in violation of law, including
provisions that may be included in any resolution of the Authority authorizing
revenue bonds pursuant to this article.

B. Any bank or trust company incorporated under the laws of the Commonwealth
that may act as depository of the proceeds of bonds, revenues, or other moneys
may furnish such indemnifying bonds or pledge such securities as may be required
by the Authority.

C. Any such trust agreement may set forth the rights and remedies of the
bondholders and the trustee and restrict the individual right of action by
bondholders.

D. Any such trust agreement or resolution may contain such other provisions as
the Authority deems reasonable and proper for the security of the bondholders.

E. All expenses incurred in carrying out the provisions of such trust agreement
or resolution may be treated as a part of the cost of the operation of a
project.

HISTORY: 1972, c. 686, § 23-30.48; 2016, c. 588.