53.1-95.11 - Trust agreements.
§ 53.1-95.11. Trust agreements.
In the discretion of an authority created pursuant to this article, any bondsissued under the provisions of this article may be secured by a trustagreement by and between the authority and a corporate trustee, which may beany trust company or bank having the powers of a trust company within orwithout the Commonwealth. Such trust agreement or the resolution providingfor the issuance of such bonds may pledge or assign the charges and otherrevenues to be received, but shall not convey or mortgage the project or anypart thereof. Such trust agreement or resolution providing for the issuanceof such 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 project,the rates to be charged for services, and the custody, safeguarding, andapplication of all moneys. It shall be lawful for any bank or trust companyincorporated under the laws of the Commonwealth which may act as depositoryof the proceeds of bonds or of revenues to furnish such indemnifying bonds orto pledge such securities as may be required by the authority. Any suchtrust agreement may set forth the rights and remedies of the bondholders andof the trustee, and may restrict the individual right of action bybondholders. In addition to the foregoing, any such trust agreement orresolution 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 project.
(1990, c. 837.)