                                 CODE OF VIRGINIA

MONEYS RECEIVED DEEMED TRUST FUNDS (§ 5.1-2.10)

All moneys received pursuant to the authority of this chapter, whether as
proceeds from the sale of bonds or as revenues, shall be deemed to be trust
funds to be held and applied solely as provided in this chapter. The resolution
authorizing the bonds of any issue or the trust agreement securing such bonds
shall provide that any officer with whom, or any bank or trust company with
which, such moneys shall be deposited shall act as trustee of such moneys and
shall hold and apply the same for the purposes hereof, subject to such
regulations as this chapter and such resolution or trust agreement may provide.
In the case of revenues or the proceeds from the sale of revenue bonds, the
trustee may invest and reinvest such funds in securities that are legal
investments under the laws of the Commonwealth for funds held by fiduciaries
pending their need for the construction of the projects. In the case of the
proceeds of the sale of refunding bonds, the trustee may invest and reinvest
such funds in direct obligations of, or obligations the principal of and the
interest on which are guaranteed by, the United States of America. Such money
and the interest, income and profits, if any, earned on such investment shall be
available for the payment of all or any part of the principal, interest and
redemption premium, if any, of the bonds being refunded. The proceeds of the
sale of refunding bonds shall be so invested and applied as to ensure that the
principal, interest and redemption premium, if any, on the bonds being refunded
shall be paid in full on their respective maturity, redemption or interest
payment dates. After the terms of the trust have been fully satisfied, any
balance of such proceeds, interest, income and profits, if any, realized on the
investments thereof may be returned to the Board for use by it in any lawful
manner.

HISTORY: 1980, c. 750; 1982, c. 563.