                                 CODE OF VIRGINIA

TRUST INDENTURES AND MORTGAGES; SECURITY FOR THE BONDS (§ 23.1-2421)

A. Any bond issued under this chapter may be issued pursuant to or secured by
(i) a trust indenture, deed of trust, or mortgage of any project or other
property of the Authority, whether or not financed in whole or in part from the
proceeds of such bonds; (ii) a trust or other agreement with a corporate
trustee, which may be any trust company or bank having the powers of a trust
company within or outside the Commonwealth or another agent for bondholders; or
(iii) any combination of issuance or security set forth in clause (i) or (ii).
Any such trust indenture or other agreement, or the resolution providing for the
issuance of bonds, may pledge or assign fees, rents, and other charges to be
received and contain reasonable, proper, and lawful provisions for protecting
and enforcing the rights and remedies of the bondholders, including covenants
(a) providing for the collection and application of revenues and the
repossession and sale of any project or other property by the Authority or any
trustees under any trust indenture or agreement upon default; (b) setting forth
duties of the Authority in relation to the acquisition, construction,
maintenance, operation, and insurance of any project or other property of the
Authority and the amount of fees, rents, and other charges to be charged; (c)
providing for the collection of such fees, rents, and other charges and the
custody, safeguarding, and application of all moneys of the Authority; (d)
providing for the creation of sinking funds and the creation and maintenance of
reserves; and (e) setting forth conditions or limitations with respect to
incurring indebtedness or granting mortgages or other liens. Such trust
indenture, trust, or other agreement or resolution may set forth the rights and
remedies of the bondholders, trustee, or other agent for bondholders and
restrict the individual right of action by bondholders.

B. The Authority may grant mortgages, deeds of trust, security interests, and
other liens on its real and personal property, including its accounts
receivable, to secure bonds. All pledges of revenues of the Authority for
payment of bonds are valid and binding from the time the pledge is made. The
revenues pledged and received by the Authority are subject immediately to the
lien of such pledge without any physical delivery of such pledge or further act.
The lien of any such pledge is valid and binding against all parties having
claims of any kind in tort, contract, or otherwise against the Authority whether
or not such parties have notice of the lien. The Authority may provide for the
recording or filing of any mortgage, deed of trust, security interest, other
lien, financing statement, or other instrument necessary or desirable to create,
perfect, or evidence any lien created pursuant to this chapter.

C. It is lawful for any bank or trust company within or outside the Commonwealth
to (i) serve as depository of the proceeds of bonds or other revenues of the
Authority, (ii) furnish indemnifying bonds, or (iii) pledge such securities as
may be required by the Authority.

D. All expenses incurred in carrying out the provisions of such trust indenture,
agreement, 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
costs of a project.

HISTORY: 1996, cc. 905, 1046, § 23-50.16:28; 2016, c. 588.