                                 CODE OF VIRGINIA

PROCEEDS OF BONDS AND REVENUES HELD IN TRUST FOR CERTAIN PURPOSES (§ 62.1-143)

All moneys received pursuant to the provisions of this chapter, whether as
proceeds from the sale of revenue bonds or refunding bonds or as revenues, shall
be deemed to be trust funds to be held and applied solely as provided in this
chapter. The Authority shall, in the resolution authorizing such bonds or in the
trust agreement securing such bonds, provide for the payment of the proceeds of
the sale of the bonds and the revenues to be received to a trustee, which shall
be any trust company or bank having the powers of a trust company within or
without the Commonwealth, who shall act as trustee of the funds, and hold and
apply the same to the purposes of this chapter, subject to such regulations as
this chapter and such resolution or trust agreement may provide. In the case of
the proceeds of the sale of revenue bonds or revenues, the trustee may invest
and reinvest such funds pending their need for the construction of the project
in securities that are legal investments under the laws of the Commonwealth for
funds held by fiduciaries. 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 assure 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, and carried out, any balance of such proceeds and
interest, income and profits, if any, earned or realized on the investments
thereof may be returned to the Authority for use by it in any lawful manner.

HISTORY: Code 1950, § 62-106.15; 1954, c. 667; 1968, c. 1981, c. 590.