33.1-284 - Trust indenture.
§ 33.1-284. Trust indenture.
In the discretion of the Board, each or any issue of revenue bonds may besecured by a trust indenture by and between the Board and a corporatetrustee, which may be any trust company or bank having trust powers within oroutside of the Commonwealth. Such trust indenture may pledge tolls andrevenues to be received, but no such trust indenture shall convey or mortgageany project or any part thereof. Either the resolution providing for theissuance of revenue bonds or such trust indenture may contain such provisionsfor protecting and enforcing the rights and remedies of the bondholders asmay be reasonable and proper and not in violation of law, including covenantssetting forth the duties of the Board in relation to the acquisition,construction, improvement, maintenance, operation, repair and insurance ofthe projects and the custody, safeguarding and application of all moneys.Such resolution or trust indenture may also provide that the project orprojects shall be acquired, or acquired and improved, or constructed, andpaid for under the supervision and approval of consulting engineers employedor designated by the Board and satisfactory to the original purchasers of thebonds issued therefor and may also require that the security given bycontractors and by any depository of the proceeds of the bonds or revenues ofthe project or projects or other moneys pertaining thereto be satisfactory tosuch purchasers. Any bank or trust company within or outside of theCommonwealth may act as such depository and furnish such indemnifying bondsor pledge such securities as may be required by the Board. Such indenture mayset forth the rights and remedies of the bondholders and of the trustee andmay restrict the individual right of action of bondholders as is customary intrust indentures securing bonds and debentures of corporations. In additionto the foregoing, such trust indenture may contain such other provisions asthe Board may deem reasonable and proper for the security of the bondholders.Except as in this article otherwise provided, the Board may provide, byresolution or by such trust indenture, that after the payment of the proceedsof the sale of the bonds and the revenues of the project or projects into thestate treasury the Board will immediately transfer or pay same over to suchofficer, board or depository as it may determine for the custody thereof andfor the method of disbursement thereof, with such safeguards and restrictionsas it may determine. All expenses incurred in carrying out such trustindenture may be treated as a part of the cost of maintenance, operation andrepairs of the project or projects affected by such indenture.
(Code 1950, § 33-244; 1970, c. 322; 2000, cc. 1019, 1044.)