15.2-5415 - Security for bonds; trust agreement; bond resolution.
§ 15.2-5415. Security for bonds; trust agreement; bond resolution.
In the discretion of any authority, any revenue bonds issued under theprovisions of this chapter may be secured by a trust agreement by and betweenthe authority and a corporate trustee. Such corporate trustee, and anydepository of funds of the authority, may be any trust company or bank havingthe powers of a trust company within the Commonwealth. The resolutionauthorizing the issuance of the bonds or the trust agreement may pledge orassign all or a portion of the revenues to be received by the authority inrespect of any project or projects but shall not convey or mortgage anyproject, may contain such provisions for protecting and enforcing the rightsand remedies of the bondholders as may be reasonable and proper and not inviolation of law, and may restrict the individual right of action bybondholders. The trust agreement or the resolution providing for the issuanceof such bonds may contain covenants including, but not limited to, thefollowing:
1. The pledge of all or any part of the revenues derived from the project orprojects to be financed by the bonds or from the electric system orfacilities of the authority;
2. The rents, rates, fees and charges to be established, maintained, andcollected, and the use and disposal of revenues, gifts, grants and fundsreceived or to be received by the authority;
3. The setting aside of reserves and the investment, regulation anddisposition thereof;
4. The custody, collection, securing, investment, and payment of any moneysheld for the payment of bonds;
5. Limitations or restrictions on the purposes to which the proceeds of thesale of bonds then or thereafter to be issued may be applied;
6. Limitations or restrictions on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured or the refunding ofoutstanding or other bonds;
7. The procedure, if any, by which the terms of any contract with bondholdersmay be amended, the percentage of bonds the bondholders of which must consentthereto, and the manner in which such consent may be given;
8. Events of default and the rights and liabilities arising thereupon, theterms and conditions upon which bonds issued under this chapter shall becomeor may be declared due before maturity, and the terms and conditions uponwhich such declaration and its consequences may be waived;
9. The preparation and maintenance of a budget;
10. The retention or employment of consulting engineers, independentauditors, and other technical consultants;
11. Limitations on or the prohibition of free service to any person, firm orcorporation, public or private;
12. The acquisition and disposal of property, and the appointment of areceiver of the funds and property of the authority in the event of a default;
13. Provisions for insurance and for accounting reports and the inspectionand audit thereof; and
14. The continuing operation and maintenance of the project or projects.
Any pledge made by an authority pursuant to this chapter shall be governed bythe laws of the Commonwealth.
(1979, c. 416, § 15.1-1618; 1997, c. 587.)