CODE OF VIRGINIA

SPECIAL REMEDIES OF BONDHOLDERS (§ 21-200)

(a. The provisions of this section shall be applicable to a series of bonds of a
commission only if the resolution or resolutions authorizing such series of
bonds shall provide in substance that the holders of the bonds of such series
shall be entitled to all the benefits, and be subject to the provisions of this
section.

(b. In the event that the commission shall default in the payment of the
principal of or interest on any bonds of such series after the same shall become
due, whether at maturity or upon call for redemption, and such default shall
continue for a period of thirty days, or in the event that the commission shall
fail or refuse to comply with the provisions of this chapter relating to or
affecting the payment or security of such bonds or the collection of fees, rents
or charges, or other revenues therefor, or shall fail or refuse to carry out and
perform the terms of any contract with the holders of any of such bonds, and
such failure or refusal shall continue for a period of thirty days after written
notice of its existence and nature to the commission the holders of twenty-five
per centum in aggregate principal amount of such bonds then outstanding, by
instrument or instruments filed with the Governor and proved or acknowledged in
the same manner as a deed to be recorded, may appoint a trustee to represent the
holders of all bonds of such series for the purposes herein provided.

(c. Such trustee may, and upon written request of the holders of twenty-five per
centum in principal amount of the bonds of such series then outstanding shall,
in his or its name:

   (1.  By mandamus or other suit, action or proceeding at law or in equity,
   enforce all rights of the holders of such bonds, including the right to
   require the commission to collect fees, rents and other charges adequate to
   carry out any agreement as to, or pledge of, such fees, rents or other
   charges, or the revenues therefrom, and to require the commission to carry out
   and perform the terms of any contract with the holders of such bonds or its
   duties under this chapter;

   (2.  Bring suit upon all or any part of such bonds;

   (3.  By action or suit in equity, require the commission to account as if it
   were the trustee of an express trust for the holders of such bonds;

   (4.  By action or suit in equity, enjoin any act or thing which may be
   unlawful or in violation of the rights of the holders of such bonds;

   (5.  Declare all such bonds due and payable, whether or not in advance of
   maturity, and, if all defaults shall be made good, then with the consent of
   the holders of twenty-five per centum of the principal amount of such bonds
   then outstanding, annul such declaration and its consequences, provided that
   before declaring such bonds due and payable, the trustee shall first give
   thirty days’ notice in writing to the commission.

(d. If the resolution or resolutions authorizing such series of bonds shall
contain the provision authorized by subsection (a) of this section and shall
further provide in substance that any trustee appointed pursuant to this section
shall have the powers provided by this subsection, then such trustee, whether or
not all of the bonds of such series shall have been declared due and payable,
shall be entitled as of right to the appointment of a receiver, who may enter
upon and take possession of any facilities or property operated by the
commission, any of the revenues from the operation of which are pledged for the
security of such bonds, and operate and maintain the same and fix, charge,
collect and receive all fees, rents and other charges and other revenues
thereafter arising from such operation in the same manner as the commission
itself might do, and shall deposit all moneys collected in a separate account
and apply the same in accordance with the duties and contracts of the commission
in such manner as the court appointing such receiver shall direct.

(e. In any suit, action or proceeding by such trustee, the fees, counsel fees
and expenses of such trustee and of the receiver, if any, shall constitute
taxable costs and disbursements, and all costs and disbursements, allowed by the
court shall be a first charge upon any fees, rents and other charges, and
revenues of the commission pledged for the payment or security of such bonds.

(f. Such trustee shall, in addition to the foregoing, have and possess all of
the powers necessary or appropriate for the exercise of any functions
specifically set forth herein or incident to the general representation of the
holders of the bonds of such series in the enforcement and protection of their
rights.

HISTORY: 1938, p. 521; Michie Code 1942, § 1560pp.