15.2-5356 - Provisions of bonds and trust indentures.
§ 15.2-5356. Provisions of bonds and trust indentures.
In connection with the issuance of bonds or the incurring of any obligationsand in order to secure the payment of such bonds or obligations, theauthority shall have power:
1. To pledge by resolution, trust indenture, or other contract, all or anypart of its rents, fees, or revenues.
2. To covenant to impose and maintain such schedule of fees and charges aswill produce funds sufficient to pay operating costs and debt service.
3. To covenant with respect to limitations on its right to sell, lease orotherwise dispose of any hospital project or other property of the authorityor any part thereof or with respect to limitations on its right to undertakeadditional hospital projects.
4. To covenant against pledging all or any part of its rents, fees andrevenues to which its right then exists or the right to which may thereaftercome into existence or against permitting or suffering any lien thereon.
5. To provide for the release of rents, fees, and revenues from any pledgeand reserve rights and powers in, or the right to dispose of, property, therents, fees and revenues from which are subject to a pledge.
6. To covenant as to the bonds to be issued pursuant to any resolution, trustindenture, or other instrument and as to the issuance of such bonds in escrowor otherwise, and as to the use and disposition of the proceeds thereof.
7. To covenant as to what other, or additional, debt may be incurred by it.
8. To provide for the terms, form, registration, exchange, execution andauthentication of bonds.
9. To provide for the replacement of lost, destroyed, or mutilated bonds.
10. To covenant as to the use of any or all of its property, real or personal.
11. To create or authorize the creation of special funds in which there shallbe segregated: (i) the proceeds of any loan or grant; (ii) all of the rents,fees and revenues of any hospital project or projects or parts thereof; (iii)any moneys held for the payment of the costs of operation and maintenance ofany such hospital projects or as a reserve for the meeting of contingenciesin the operation and maintenance thereof; (iv) any moneys held for thepayment of the principal and interest on its bonds or the sums due under itsleases or as a reserve for such payments; and (v) any moneys held for anyother reserve or contingency; and to covenant as to the use and disposal ofthe moneys held in such funds.
12. To redeem the bonds and covenant for their redemption and provide theterms and conditions thereof.
13. To covenant against extending the time for the payment of its bonds orinterest thereon, directly or indirectly, by any means or in any manner.
14. 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.
15. To covenant as to the maintenance of its property, the replacementthereof, the insurance to be carried thereon and the use and disposition ofinsurance moneys.
16. To vest in an obligee of the authority the right, in the event of thefailure of the authority, to observe or perform any covenant on its part tobe kept or performed, cure any such default and advance any moneys necessaryfor such purpose. The moneys so advanced may be made an additional obligationof the authority with such interest, security and priority as may be providedin any trust indenture, lease or contract of the authority with referencethereto.
17. To covenant and prescribe as to the events of default and terms andconditions upon which any or all of its bonds shall become or may be declareddue before maturity and as to the terms and conditions upon which suchdeclaration and its consequences may be waived.
18. To covenant as to the rights, liabilities, powers and duties arising uponthe breach by it of any covenant, condition, or obligation.
19. To covenant to surrender possession of all or any part of any hospitalproject or other property of the authority, the revenues from which have beenpledged, upon the happening of any event of default (as defined in thecontract) and to vest in an obligee the right without judicial proceeding totake possession; to use, operate, manage and control such hospital project orother property or any part thereof; to collect and receive all rents, feesand revenues arising therefrom in the same manner as the authority itselfmight do; and to dispose of the moneys collected in accordance with theagreement of the authority with such obligee.
20. To vest in a trustee or trustees the right to enforce any covenant madeto secure, to pay, or in relation to the bonds, to provide for the powers andduties of such trustee or trustees, to limit liabilities thereof and toprovide the terms and conditions upon which the trustee or trustees or theholders of bonds or any proportion of them may enforce any such covenant.
21. To make covenants other than and in addition to the covenants hereinexpressly authorized, of like or different character.
22. To execute all instruments necessary or convenient in the exercise of thepowers herein granted or in the performance of its covenants or duties, whichmay contain such covenants and provisions, in addition to those abovespecified, as the government or any purchaser of the bonds of the authoritymay reasonably require.
23. To make such covenants and to do any and all such acts and things as maybe necessary or convenient or desirable in order to secure its bonds or, inthe absolute discretion of the authority, tend to make the bonds moremarketable, notwithstanding that such covenants, acts or things may not beenumerated herein. It is the intention hereof to give the authority power todo all things in the issuance of bonds and in the provisions for theirsecurity that are not inconsistent with the Constitution of Virginia.
(Code 1950, § 32-271; 1973, c. 462, § 15.1-1591; 1979, c. 719; 1997, c. 587.)