                                 CODE OF VIRGINIA

PLEDGE OF ASSETS TO SECURE BONDS OF THE HDA (§ 36-148)

The HDA is empowered at any time and from time to time to transfer, upon the
direction of the Director of the Department of Housing and Community
Development, from the portion of the Fund under its control to banks or trust
companies designated by the HDA any or all of the assets of the Fund to be held
in trust as security for the payment of the principal of and premium, if any,
and interest on any or all of the bonds of the HDA. The interests of the Fund in
any assets so transferred shall be subordinate to the rights of the trustee
under the pledge. To the extent funds are not available from other sources
pledged for such purpose, any payments of principal and interest received on the
assets transferred or held in trust may be applied by the trustee thereof to the
payment of the principal of and premium, if any, and interest on such bonds of
the HDA to which the assets have been pledged, 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 and premium, if any, and interest on such bonds of the HDA. Any
assets of the Fund transferred in trust as set forth above and any payments of
principal, interest or earnings received thereon shall remain part of the Fund
but shall be subject to the pledge to secure the bonds of the HDA and shall be
held by the trustee to which they are pledged until no longer required for such
purpose by the terms of the pledge. On or before January 10 of each year, the
HDA shall transfer, or shall cause the trustee to transfer, to the Fund any
assets transferred or held in trust as set forth above which are no longer
required to be held in trust pursuant to the terms of the pledge.

HISTORY: 1988, c. 687; 2013, c. 754.