15.2-6315 - Provisions for securing payment of bonds.
§ 15.2-6315. Provisions for securing payment of bonds.
In order to secure the payment of such bonds, the authority shall have powerby provision or provisions included in any resolution authorizing said bondsor in any indenture made to secure their payment:
1. To pledge all or any part of its gross or net rents, fees or revenues towhich its right then exists or may thereafter come into existence.
2. To mortgage all or any part of its real or personal property, then ownedor thereafter acquired.
3. To covenant against pledging all or any part of its rents, fees andrevenues, or against mortgaging all or any part of its real or personalproperty to which its right or title then exists or may thereafter come intoexistence or against permitting or suffering any lien on such revenues orproperty; to covenant with respect to limitations on its right to sell, leaseor otherwise dispose of any property or any part thereof; and to covenant asto what other or additional debts or obligations may be incurred by it.
4. To covenant as to the bonds to be issued and as to the issuance of suchbonds in escrow or otherwise, and as to the use and disposition of theproceeds thereof; to provide for the replacement of lost, destroyed ormutilated bonds; to covenant against extending the time of the payment of itsbonds or interest thereon; and to redeem the bonds, and to covenant for theirredemption and to provide the terms and conditions thereof.
5. To covenant as to the rents and fees to be charged in the operation of aspecific project or facility, the amount to be raised each year or otherperiod of time by rents, fees, and other revenues, and as to the use anddisposition to be made thereof; to create or to authorize the creation ofspecial funds for moneys held for construction or operating costs, debtservice, reserves, or other purposes, and to covenant as to the use anddisposition of the moneys held in such funds.
6. To prescribe the procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the amount of bonds the holdersof which must consent thereto and the manner in which such consent may begiven.
7. To covenant as to the use of any or all of its real or personal property;and to covenant as to the maintenance of its real and personal property, thereplacement thereof, the insurance to be carried thereon and the use anddisposition of insurance moneys.
8. To covenant as to the rights, liabilities, powers and duties arising uponthe breach by it of any covenant, condition, or obligation; and to covenantand prescribe as to events of default and terms and conditions upon which anyor all of its bonds or obligations shall become or may be declared due beforematurity, and as to the terms and conditions upon which such declaration andits consequences may be waived.
9. To vest in a trustee or trustees or the holders of bonds or any proportionof them the right to enforce the payment of the bonds or any covenantssecuring or relating to the bonds; to vest in a trustee or trustees theright, in the event of a default by the authority, to take possession anduse, operate and manage any property or part thereof, and to collect therents and revenues arising therefrom and to dispose of such moneys inaccordance with the agreement of the authority with said trustee; to providefor the powers and duties of a trustee or trustees and to limit theliabilities thereof; and to provide the terms and conditions upon which thetrustee or trustees or the holders of bonds or any portion of them mayenforce any covenant or rights securing or relating to the bonds.
10. To exercise all or any part or combination of the powers herein granted;and to make covenants other than and in addition to the covenants hereinexpressly authorized, of like or different character; to make such covenantand to do any and all such acts and things as may be necessary or convenientor desirable in order to secure its bonds, or in the absolute discretion ofthe authority as will tend to make the bonds more marketable notwithstandingthat such covenants, acts or things may not be enumerated herein.
(Code 1950, § 15-953; 1954, c. 645; 1962, c. 623, § 15.1-1336; 1997, c. 587.)