                                 CODE OF VIRGINIA

PLEDGE OF LOANS TO SECURE BONDS OF THE AUTHORITY (§ 3.2-3117)

A. The Authority is empowered at any time and from time to time to pledge,
assign, or transfer from the Fund to banks or trust companies designated by the
Authority any or all of the assets of the Fund to be held in trust as security
for the payment of the principal of, premium, if any, and interest on any or all
of the bonds, as defined in &#xA7; 62.1-199, issued to finance any project
located in the tobacco-dependent communities in the Southside and Southwest
regions of Virginia. The interests of the Fund in any assets so transferred
shall be subordinate to the rights of the trustee under the pledge, assignment,
or transfer.

B. To the extent funds are not available from other sources pledged for such
purpose, any of the assets or payments of principal and interest received on the
assets pledged, assigned, or transferred or held in trust may be applied by the
trustee thereof to the payment of the principal of, premium, if any, and
interest on such bonds of the Authority secured thereby, and, if such payments
are insufficient for such purpose, the trustee is empowered to sell any or all
of such assets and apply the net proceeds from the sale to the payment of the
principal of, premium, if any, and interest on such bonds of the Authority.

C. Any assets of the Fund pledged, assigned, or transferred in trust as set
forth in this section and any payments of principal, interest, or earnings
received thereon shall remain part of the Fund but shall be subject to the
pledge, assignment, or transfer to secure the bonds of the Authority and shall
be held by the trustee to which they are pledged, assigned, or transferred until
no longer required for such purpose by the terms of the pledge, assignment, or
transfer.

HISTORY: 2015, cc. 399, 433.