CODE OF VIRGINIA

(EFFECTIVE OCTOBER 1, 2016) POWERS AND DUTIES; RATES, RENTS, FEES AND CHARGES;
SINKING FUND (§ 23.1-1229)

A. The Authority may fix, revise, charge, and collect rates, rents, fees, and
charges for the use of and the services furnished by each project and contract
with any person, partnership, association, corporation, or other public or
private body to perform such acts. The aggregate of such rates, rents, fees, and
charges shall be fixed and adjusted to provide funds that, when combined with
other revenues, is sufficient to (i) pay the uncovered cost of maintaining,
repairing, and operating each portion of the project; (ii) pay the principal of
and the interest on outstanding revenue bonds of the Authority as such principal
and interest becomes due and payable; and (iii) create and maintain reserves
required or provided for in any resolution authorizing, or trust agreement
securing, such revenue bonds of the Authority. No such rate, rent, fee, or
charge shall be subject to supervision or regulation by any department,
commission, board, body, bureau, or agency of the Commonwealth other than the
Authority.

B. The Authority shall set aside in a sinking fund or other similar fund a
sufficient amount of the revenues derived from a project, except the part of
such revenues that is necessary to pay the cost of maintenance, repair, and
operation of the project, provide reserves, or make renewals, replacements,
extensions, enlargements, and improvements as set forth in the resolution
authorizing the issuance of any revenue bonds of the Authority or in the trust
agreement securing such revenue bonds. The Authority shall pledge such sinking
fund or other similar fund to pay the principal of and the interest on such
revenue bonds as such principal and interest becomes due and the redemption or
purchase price of bonds retired by call or purchase as provided in the
resolution authorizing the issuance of any revenue bonds of the Authority or in
the trust agreement securing such revenue bonds. Such pledge is valid and
binding from the time when the pledge is made. The rates, rents, fees, and
charges and other revenues or moneys so pledged and received by the Authority
shall immediately be subject to the lien of such pledge without any physical
delivery or further act. The lien of any such pledge is valid and binding
against all parties having claims of any kind in tort, contract, or otherwise
against the Authority, irrespective of whether such parties have notice of such
lien. No resolution authorizing the issuance of any revenue bonds of the
Authority or trust agreement by which a pledge is created need be filed or
recorded except in the records of the Authority. The use and disposition of
moneys to the credit of such sinking fund or other similar fund is subject to
the provisions of the resolution authorizing the issuance of such bonds or of
such trust agreement. Such sinking fund or other similar fund is a fund for all
such revenue bonds issued to finance a project by a participating institution,
without distinction or priority of one revenue bond over another, but the
Authority may provide in any such resolution or trust agreement (i) that such
sinking fund or other similar fund is the fund for a particular project by a
participating institution and the revenue bonds issued to finance a particular
project and (ii) for the issuance of revenue bonds having a subordinate lien to
other revenue bonds of the Authority with respect to the security authorized
and, in such case, the Authority may create separate or other similar funds with
respect to such subordinate lien bonds.

HISTORY: 1972, c. 686, § 23-30.50; 2016, cc. 532, 588, 658.