§ 33.1-286. Sinking fund
The tolls and all other revenues derived from the project or projects for which a single issue of bonds is issued, except such part thereof as may be required to pay the cost of maintaining, repairing and operating such project or projects and to provide such reserves therefor as may be provided for in the resolution authorizing the issuance of such bonds or in the trust indenture, shall be set aside at such regular intervals as may be provided in such resolution or such trust indenture, in a sinking fund which is hereby pledged to, and charged with the payment of: (1) the interest upon such bonds as such interest shall fall due, (2) the principal of the bonds as the same shall fall due, (3) the necessary charges of paying agents for paying principal and interest, and (4) any premium upon bonds retired by call or purchase as herein provided.
The use and disposition of such sinking fund shall be subject to such regulations as may be provided in the resolution authorizing the issuance of the bonds or in the trust indenture but, except as may otherwise be provided in such resolution or trust indenture, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another. Subject to the provisions of the resolution authorizing the issuance of the bonds or of the trust indenture, any moneys in such sinking fund in excess of an amount equal to one year's interest on all bonds then outstanding may be applied to the purchase or redemption of bonds. All bonds so purchased or redeemed shall forthwith be cancelled and shall not again be issued.
(Code 1950, § 33-246; 1970, c. 322.)Sections: Previous 33.1-280 33.1-281 33.1-282 33.1-283 33.1-284 33.1-285 33.1-285.1 33.1-286 33.1-287 33.1-288 33.1-289 33.1-290 33.1-291 33.1-292 33.1-293 Next
Last modified: April 3, 2009