10.1-306 - Trust indenture; provisions applicable to bond resolution.
§ 10.1-306. Trust indenture; provisions applicable to bond resolution.
Any issue of revenue bonds may be secured by a trust indenture by and betweenthe Director, in the name of the Commonwealth, and a corporate trustee, whichmay be any trust company or bank having the powers of a trust company. Thetrust indenture may pledge fees and charges to be received from the use ofand for the services rendered by any camp and recreational facilities to beacquired or constructed from the proceeds of such revenue bonds, but no trustindenture shall convey or mortgage any camping or recreational facilities orany part thereof.
Either the resolution providing for the issuance of revenue bonds or thetrust indenture may contain provisions for protecting and enforcing therights and remedies of the bondholders as may be reasonable and proper andnot in violation of law, including covenants setting forth the duties of theDirector in relation to the acquisition, construction, improvement,maintenance, operation, repair and insurance of such facilities, and thecustody, safeguarding and application of all moneys. The trust indenture mayalso provide that camping and recreational facilities shall be acquired,constructed, enlarged or improved, and paid for under the supervision andapproval of consulting engineers employed or designated by the Director, inthe name of the Commonwealth, and satisfactory to the original purchasers ofthe bonds issued. The trust indenture may further require that the securitygiven by contractors and by any depository of the proceeds of the bonds orrevenues of the camping and recreational facilities or other moneyspertaining to the facilities be satisfactory to the purchasers. It shall belawful for any bank or trust company incorporated under the laws of thisCommonwealth to act as depository and to furnish indemnifying bonds or topledge securities required by the Director. Such indenture may set forth therights and remedies of the bondholders and of the trustee, and may restrictthe individual right of action of bondholders as is customary in trustindentures securing bonds and debentures of corporations.
In addition, the indenture may contain other provisions that the Directordeems reasonable and proper for the security of the bondholders.
(Code 1950, § 10-105; 1986, c. 498; 1988, c. 891.)