                                 CODE OF VIRGINIA

PROVISIONS OF BONDS, TRUST INDENTURES AND MORTGAGES (§ 36-31)

In connection with the issuance of bonds or the incurring of obligations under
leases and in order to secure the payment of such bonds or obligations, an
authority, in addition to its other powers, shall have power:

a. To pledge all or any part of its gross or net rents, fees or revenues to
which its right then exists or may thereafter come into existence.

b. To mortgage all or any part of its real or personal property, then owned or
thereafter acquired.

c. To covenant against pledging all or any part of its rents, fees and revenues,
or against mortgaging all or any part of its real or personal property, to which
its right or title then exists or may thereafter come into existence or against
permitting or suffering any lien on such revenues or property; to covenant with
respect to limitations on its right to sell, lease or otherwise dispose of any
housing project or any part thereof; and to covenant as to what other, or
additional debts or obligations may be incurred by it.

d. To covenant as to the bonds to be issued and as to the issuance of such bonds
in escrow or otherwise, and as to the use and disposition of the proceeds
thereof; to provide for the replacement of lost, destroyed or mutilated bonds;
to covenant against extending the time for the payment of its bonds or interest
thereon; and to redeem the bonds, and to covenant for their redemption and to
provide the terms and conditions thereof.

e. To covenant (subject to the limitations contained in this chapter) as to the
rents and fees to be charged in the operation of a housing project or projects,
the amount to be raised each year or other period of time by rents, fees and
other revenues, and as to the use and disposition to be made thereof; to create
or to authorize the creation of special funds for moneys held for construction
or operating costs, debt service, reserves, or other purposes, and to covenant
as to the use and disposition of the moneys held in such funds.

f. To prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of
which must consent thereto and the manner in which such consent may be given.

g. To covenant as to the use of any or all of its real or personal property; and
to covenant as to the maintenance of its real and personal property, the
replacement thereof, the insurance to be carried thereon and the use and
disposition of insurance moneys.

h. To covenant as to the rights, liabilities, powers and duties arising upon the
breach by it of any covenant, condition, or obligation; and to covenant and
prescribe as to events of default and terms and conditions upon which any or all
of its bonds or obligations shall become or may be declared due before maturity,
and as to the terms and conditions upon which such declaration and its
consequences may be waived.

i. To vest in a trust or trustees or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants securing or
relating to the bonds; to vest in a trustee or trustees the right, in the event
of a default by the authority, to take possession and use, operate and manage
any housing project or part thereof, and to collect the rents and revenues
arising therefrom and to dispose of such moneys in accordance with the agreement
of the authority with the trustee; to provide for the powers and duties of a
trustee or trustees and to limit the liabilities thereof; and to provide the
terms and conditions upon which the trustee or trustees or the holders of bonds
or any portion of them may enforce any covenant or right securing or relating to
the bonds.

j. To exercise all or any part or combination of the powers herein granted; and
to make covenants other than and in addition to the covenants herein expressly
authorized, of like or different character.

HISTORY: 1938, p. 455; Michie Code 1942, § 3145(16).