                                 CODE OF VIRGINIA

TRUST AGREEMENTS (§ 53.1-95.11)

In the discretion of an authority created pursuant to this article, any bonds
issued under the provisions of this article may be secured by a trust agreement
by and between the authority and a corporate trustee, which may be any trust
company or bank having the powers of a trust company within or without the
Commonwealth. Such trust agreement or the resolution providing for the issuance
of such bonds may pledge or assign the charges and other revenues to be
received, but shall not convey or mortgage the project or any part thereof. Such
trust agreement or resolution providing for the issuance of such bonds may
contain such provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority in relation to the
acquisition of property and the construction, improvement, maintenance, repair,
operation, and insurance of the project, the rates to be charged for services,
and the custody, safeguarding, and application of all moneys. It shall be lawful
for any bank or trust company incorporated under the laws of the Commonwealth
which may act as depository of the proceeds of bonds or of revenues to furnish
such indemnifying bonds or to pledge such securities as may be required by the
authority. Any such trust agreement may set forth the rights and remedies of the
bondholders and of the trustee, and may restrict the individual right of action
by bondholders. In addition to the foregoing, any such trust agreement or
resolution may contain such other provisions as the authority may deem
reasonable and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of such trust agreement or resolution may be
treated as a part of the cost of the operation of the project.

HISTORY: 1990, c. 837.