62.1-141 - Trust agreement securing bonds; provisions of agreement or bond resolution; depository of proceeds or revenues; expenses.
§ 62.1-141. Trust agreement securing bonds; provisions of agreement or bondresolution; depository of proceeds or revenues; expenses.
In the discretion of the Authority any bonds issued under the provisions ofthis chapter 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. Such trustagreement or the resolution providing for the issuance of such bonds maypledge or assign the revenues to be received, but shall not convey ormortgage the port facilities or any part thereof; provided, however, theAuthority may make a purchase-money agreement giving a chattel mortgage orlien on personal property or operating equipment purchased for use in itsfacilities. Such trust agreement or resolution providing for the issuance ofsuch bonds may contain such 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 theAuthority in relation to the acquisition of property and the construction,improvement, maintenance, repair, operation and insurance of the portfacilities or the portion thereof in connection with which such bonds shallhave been authorized, the rates to be charged, the custody, safeguarding andapplication of all moneys, and conditions or limitations with respect to theissuance 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 bonds or of revenues to furnish suchindemnifying bonds or to pledge such securities as may be required by theAuthority. Any such trust agreement may set forth the rights and remedies ofthe bondholders and of the trustee, and may restrict the individual right ofaction by bondholders. In addition to the foregoing, any such trust agreementor resolution may contain such other provisions as the Authority may deemreasonable and proper for the security of the bondholders. All expensesincurred in carrying out the provisions of such trust agreement or resolutionmay be treated as a part of the cost of the operation of the port facilitiesor portion thereof.
(Code 1950, § 62-106.13; 1954, c. 667; 1968, c. 659; 1974, c. 148.)