CODE OF VIRGINIA

TRUST INDENTURE (§ 33.2-1717)

In the discretion of the Board, each or any issue of revenue bonds may be
secured by a trust indenture by and between the Board and a corporate trustee,
which may be any trust company or bank having trust powers within or outside of
the Commonwealth. Such trust indenture may pledge tolls and revenues to be
received, but no such trust indenture shall convey or mortgage any project or
any part thereof. Either the resolution providing for the issuance of revenue
bonds or such trust indenture 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 Board in relation to the acquisition, construction, improvement,
maintenance, operation, repair, and insurance of the projects and the custody,
safeguarding, and application of all moneys. Such resolution or trust indenture
may also provide that the project shall be acquired, or acquired and improved,
or constructed, and paid for under the supervision and approval of consulting
engineers employed or designated by the Board and satisfactory to the original
purchasers of the bonds issued therefor and may also require that the security
given by contractors and by any depository of the proceeds of the bonds or
revenues of the project or other moneys pertaining thereto be satisfactory to
such purchasers. Any bank or trust company within or without the Commonwealth
may act as such depository and furnish such indemnifying bonds or pledge such
securities as may be required by the Board. Such indenture may set forth the
rights and remedies of the bondholders and of the trustee and may restrict the
individual right of action of bondholders as is customary in trust indentures
securing bonds and debentures of corporations. In addition to the foregoing,
such trust indenture may contain such other provisions as the Board may deem
reasonable and proper for the security of the bondholders. Except as otherwise
provided in this chapter, the Board may provide, by resolution or by such trust
indenture, that after the payment of the proceeds of the sale of the bonds and
the revenues of the project into the state treasury the Board will immediately
transfer or pay same over to such officer, board, or depository as it may
determine for the custody thereof and for the method of disbursement thereof,
with such safeguards and restrictions as it may determine. All expenses incurred
in carrying out such trust indenture may be treated as a part of the cost of
maintenance, operation, and repairs of the project affected by such indenture.

HISTORY: Code 1950, § 33-244; 1970, c. 322, § 33.1-284; 2000, cc. 1019, 1044;
2014, c. 805.