15.2-5609 - Trust indenture or agreement to secure payment of bonds.
§ 15.2-5609. Trust indenture or agreement to secure payment of bonds.
In the discretion of the authority, any bonds issued under the provisions ofthis chapter may be secured by a trust indenture by way of conveyance, deedof trust or mortgage of any project or any other property of the authority,whether or not financed in whole or in part from the proceeds of such bonds,or by a trust agreement by and between the authority and a corporate trustee,which may be any trust company or bank having the powers of a trust companywithin or outside the Commonwealth or by both such conveyance, deed of trustor mortgage and indenture or trust agreement. Such trust indenture oragreement, or the resolution providing for the issuance of such bonds maypledge or assign fees, rents, charges and receipts, collected by, payable toor otherwise derived by the authority, and all other moneys and income ofwhatever kind or character collected by, payable to or otherwise derived fromany project. Such trust indenture or agreement, or resolution providing forthe issuance of such bonds, 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, including covenants setting forth theduties of the authority in relation to the acquisition of property and theconstruction, improvement, maintenance, repair, operation and issuance of anyproject or other property of the authority, and the rates of fees, rents andother charges to be charged, and the custody, safeguarding and application ofall moneys of the authority, and conditions or limitations with respect tothe issuance of additional bonds. It shall be lawful for any bank or trustcompany incorporated under the laws of the Commonwealth which may act asdepository of the proceeds of such bonds or of other revenues of theauthority to furnish indemnifying bonds or to pledge such securities as maybe required by the authority. Such trust indenture or agreement or resolutionmay set forth the rights and remedies of the bondholders and of the trustee,and may restrict the individual right of action by bondholders.
In addition to the foregoing, such trust indenture or agreement or resolutionmay contain such other provisions as the authority may deem reasonable andproper for the security of the bondholders. All expenses incurred in carryingout the provisions of such trust indenture or agreement or resolution may betreated as a part of the cost of a project.
(Code 1950, § 15-714.22; 1962, c. 393, § 10, § 15.1-1280; 1973, c. 238; 1997,c. 587.)