CODE OF VIRGINIA

TRUST AGREEMENT SECURING BONDS (§ 10.1-1610)

In the discretion of the Authority any bonds issued under the provisions of this
chapter may be secured by a trust agreement between the Authority and a
corporate trustee, which may be any trust company or bank having the powers of a
trust company.  The trust agreement or the resolution providing for the issuance
of bonds may pledge or assign the revenues to be received and provide for the
mortgage of any project or property or any part thereof.  However, the Authority
shall have no power to encumber its real property or create any estate or
interest therein other than encumbrances on structures not extending to the real
property upon which such structures are located.  The trust agreement or
resolution may contain reasonable, proper and lawful provisions for protecting
and enforcing the rights and remedies of the bondholders. The trust agreement or
resolution may include covenants setting forth the duties of the Authority in
relation to the acquisition of property and the planning, development,
acquisition, construction, rehabilitation, establishment, improvement,
extension, enlargement, maintenance, repair, operation and insurance of the
project in connection with which such bonds have been authorized, the rates and
fees to be charged, the custody, safeguarding and application of all moneys, and
conditions or limitations with respect to the issuance of additional bonds.  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 revenue,
to furnish such indemnifying bonds or to pledge such securities as may be
required by the Authority. The trust agreement may set forth the rights of
action by bondholders and other provisions the Authority deems reasonable and
proper for the security of the bondholders. All expenses incurred in carrying
out the provisions of the trust agreement or resolution may be treated as a part
of the operation of the project.

HISTORY: 1986, c. 360, § 10-158.7; 1988, c. 891; 1991, c. 706.