2006 Code of Virginia § 33.1-303 - Trust agreement

33.1-303. Trust agreement.

In the discretion of the Board any bonds issued under the provisions of thisarticle may be secured by a trust agreement by and between the Board and acorporate trustee, which may be any trust company or bank having the powersof a trust company within or without the Commonwealth. Such trust agreementor the resolution providing for the issuance of such bonds may pledge orassign the tolls and other revenues to be received including any other fundsmade available to the Board for such purpose, but shall not convey ormortgage any turnpike project or any part thereof. Such trust agreement orresolution providing for the issuance of such bonds may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Board in relation to theacquisition of property and the construction, improvement, maintenance,repair, operation and insurance of the turnpike project in connection withwhich such bonds shall have been authorized, and the rates of toll to becharged, and the custody, safeguarding and application of all moneys. Itshall be lawful for any bank or trust company incorporated under the laws ofthe Commonwealth which may act as depository of the proceeds of bonds or ofrevenues to furnish them indemnifying bonds or to pledge such securities asmay be required by the Board. Such trust agreement or resolution may containa covenant that, at all times while any bonds issued hereunder for theproject shall be outstanding, the Board will pay all costs of maintenance,repair and operation of such project from funds available to it for themaintenance of state highways. Any such trust agreement may set forth therights and remedies of the bondholders and of the trustee, and may restrictthe individual right of action by bondholders. In addition to the foregoing,any such trust agreement or resolution may contain such other provisions asthe Board may deem reasonable and proper for the security of the bondholders.All expenses incurred in carrying out the provisions of such trust agreementor resolution may be treated as a part of the cost of the operation of theturnpike project.

(Code 1950, 33-255.8; 1952, c. 223; 1954, c. 520; 1962, c. 552; 1970, c.322.)