                                 CODE OF VIRGINIA

PLEDGE OF LOANS TO SECURE BONDS OF AUTHORITY (§ 5.1-30.6)

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 § 62.1-199, issued to finance any project. 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. 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. Any assets of the
Fund pledged, assigned or 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, 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: 1999, c. 897.