15.2-5133 - Trust agreement; bond resolution.
§ 15.2-5133. Trust agreement; bond resolution.
In the discretion of the authority, any revenue bonds issued under theprovisions of this chapter may be secured by a trust agreement by and betweenthe authority and a corporate trustee, which may be any trust company or bankhaving the powers of a trust company within or outside the Commonwealth. Theresolution authorizing the issuance of the bonds or the trust agreement maypledge or assign the revenues to be received. The resolution or trustagreement shall not convey or mortgage any stormwater control system or wateror waste system or any part thereof, or any improvement financed pursuant to§ 15.2-5158 which is, or will be, dedicated to a public entity other than theauthority financing such improvement. However, a bond issued by a communitydevelopment authority pursuant to subdivision A 2 of § 15.2-5158 may pledgeor assign a mortgage in other real property or improvements not otherwiseproscribed hereunder and may contain such provisions for protecting andenforcing the rights and remedies of the bondholders as may be reasonable andproper and not in violation of law. Such provisions may include covenantssetting forth the duties of the authority in relation to the acquisition,construction, improvement, maintenance, operation, repair and insurance ofthe system or systems for which such bonds are issued and provisions for thecustody, safeguarding and application of all moneys and for the employment ofconsulting engineers in connection with such construction, reconstruction, oroperation. The resolution or trust agreement may set forth the rights andremedies of the bondholders, and may restrict the individual right of actionby bondholders as is customary in trust agreements or trust indenturessecuring bonds or debentures of corporations. The resolution or trustagreement may also contain such other provisions as the authority deemsreasonable and proper for the security of the bondholders. Except asotherwise provided in this chapter, the authority may provide for the paymentof the proceeds of the sale of the bonds and its revenues to such officer,board or depositary as it may designate for the custody thereof, and for themethod of disbursement thereof, with such safeguards and restrictions as itmay determine. All expenses incurred in carrying out the provisions of theresolution or trust agreement may be treated as part of the cost of operation.
(Code 1950, § 15-764.21; 1950, p. 1323; 1962, c. 623, § 15.1-1259; 1993, c.850; 1997, cc. 527, 573, 587; 2009, c. 473.)