10.1-1610 - Trust agreement securing bonds.
§ 10.1-1610. Trust agreement securing bonds.
In the discretion of the Authority any bonds issued under the provisions ofthis chapter may be secured by a trust agreement between the Authority and acorporate trustee, which may be any trust company or bank having the powersof a trust company. The trust agreement or the resolution providing for theissuance of bonds may pledge or assign the revenues to be received andprovide for the mortgage of any project or property or any part thereof.However, the Authority shall have no power to encumber its real property orcreate any estate or interest therein other than encumbrances on structuresnot extending to the real property upon which such structures are located.The trust agreement or resolution may contain reasonable, proper and lawfulprovisions for protecting and enforcing the rights and remedies of thebondholders. The trust agreement or resolution may include covenants settingforth the duties of the Authority in relation to the acquisition of propertyand the planning, development, acquisition, construction, rehabilitation,establishment, improvement, extension, enlargement, maintenance, repair,operation and insurance of the project in connection with which such bondshave been authorized, the rates and fees to be charged, the custody,safeguarding and application of all moneys, and conditions or limitationswith respect to the issuance of additional bonds. It shall be lawful for anybank or trust company incorporated under the laws of the Commonwealth whichmay act as depository of the proceeds of bonds or of revenue, to furnish suchindemnifying bonds or to pledge such securities as may be required by theAuthority. The trust agreement may set forth the rights of action bybondholders and other provisions the Authority deems reasonable and properfor the security of the bondholders. All expenses incurred in carrying outthe provisions of the trust agreement or resolution may be treated as a partof the operation of the project.
(1986, c. 360, § 10-158.7; 1988, c. 891; 1991, c. 706.)