                                 CODE OF VIRGINIA

SINKING FUND (§ 33.2-1720)

The tolls and all other revenues derived from the project for which a single
issue of bonds is issued, except such part thereof as may be required to pay the
cost of maintaining, repairing, and operating such project and to provide such
reserves therefor as may be provided for in the resolution authorizing the
issuance of such bonds or in the trust indenture, shall be set aside at such
regular intervals as may be provided in such resolution or such trust indenture,
in a sinking fund that is hereby pledged to and charged with the payment of (i)
the interest upon such bonds as such interest shall fall due, (ii) the principal
of the bonds as the same shall fall due, (iii) the necessary charges of paying
agents for paying principal and interest, and (iv) any premium upon bonds
retired by call or purchase as provided in this section.
		The use and disposition of such sinking fund shall be subject to such
regulations as may be provided in the resolution authorizing the issuance of the
bonds or in the trust indenture but, except as may otherwise be provided in such
resolution or trust indenture, such sinking fund shall be a fund for all such
bonds without distinction or priority of one over another. Subject to the
provisions of the resolution authorizing the issuance of the bonds or of the
trust indenture, any moneys in such sinking fund in excess of an amount equal to
one year&#8217;s interest on all bonds then outstanding may be applied to the
purchase or redemption of bonds. All bonds so purchased or redeemed shall
forthwith be cancelled and shall not again be issued.

HISTORY: Code 1950, § 33-246; 1970, c. 322, § 33.1-286; 2014, c. 805.