2.2-2265 - Trust agreement securing bonds.
§ 2.2-2265. Trust agreement securing bonds.
In the discretion of the Authority any bonds issued under the provisions ofthis article may be secured by a trust agreement by and between the Authorityand a corporate trustee, which may be any trust company or bank having thepowers of a trust company within or without the Commonwealth. The trustagreement or the resolution providing for the issuance of the bonds maypledge or assign the revenues to be received, but shall not convey ormortgage any project or any part thereof. The trust agreement or resolutionproviding for the issuance of such bonds may contain such provisions forprotecting and enforcing the rights and remedies of the bondholders as may bereasonable and proper and not in violation of law, including covenantssetting forth the duties of the Authority in relation to the acquisition ofproperty and the acquisition, construction, establishment, improvement,extension, enlargement, maintenance, repair, operation and insurance of theproject in connection with which the bonds have been authorized, the ratesand fees to be charged, the custody, safeguarding and application of allmoneys, and conditions or limitations with respect to the issuance ofadditional bonds. It shall be lawful for any bank or trust companyincorporated under the laws of the Commonwealth which may act as depositoryof the proceeds of bonds or of revenues to furnish the indemnifying bonds orto pledge the securities required by the Authority. Any such trust agreementmay set forth the rights of action by bondholders. In addition to theforegoing, any such trust agreement or resolution may contain such otherprovisions as the Authority deems reasonable and proper for the security ofthe bondholders. All expenses incurred in carrying out the provisions of atrust agreement or resolution may be treated as a part of the cost of theoperation of the project.
(1981, c. 569, § 2.1-234.15; 2001, c. 844.)