15.2-2426 - Pledge of loans to secure bonds of Authority.
§ 15.2-2426. Pledge of loans to secure bonds of Authority.
The Authority is empowered at any time and from time to time to transfer fromthe Fund to banks or trust companies designated by the Authority any or allassets of the Fund to be held in trust as security for the payment of theprincipal and premium, if any, and interest on any or all of the bonds (asdefined in § 62.1-199) of the Authority. The interests of the Fund in anyobligations so transferred shall be subordinate to the rights of the trusteeunder the pledge. To the extent funds are not available from other sourcespledged for such purpose, any payments of principal and interest received onthe assets transferred or held in trust may be applied by the trustee thereofto the payment of the principal and premium, if any, and interest on suchbonds of the Authority to which the obligations have been pledged, and, ifsuch payments are insufficient for such purpose, the trustee is empowered tosell any or all of such assets and apply the net proceeds from the sale tothe payment of the principal and premium, if any, and interest on such bondsof the Authority. Any assets of the Fund transferred in trust as set forthabove and any payments of principal, interest, or earnings received thereonshall remain part of the Fund but shall be subject to the pledge to securethe bonds of the Authority and shall be held by the trustee to which they arepledged until no longer required for such purpose by the terms of the pledge.On or before January 10 each year, the Authority shall transfer, or shallcause the trustee to transfer, to the Fund any assets transferred or held intrust as set forth above that are no longer required to be held in trustpursuant to the terms of the pledge.
(2009, c. 131.)