Code of Virginia - Title 33.1 Highways, Bridges And Ferries - Section 33.1-303 Trust agreement

§ 33.1-303. Trust agreement

In the discretion of the Board any bonds issued under the provisions of this article may be secured by a trust agreement by and between the Board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the tolls and other revenues to be received including any other funds made available to the Board for such purpose, but shall not convey or mortgage any turnpike project or any part thereof. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Board in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the turnpike project in connection with which such bonds shall have been authorized, and the rates of toll to be charged, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which may act as depository of the proceeds of bonds or of revenues to furnish them indemnifying bonds or to pledge such securities as may be required by the Board. Such trust agreement or resolution may contain a covenant that, at all times while any bonds issued hereunder for the project shall be outstanding, the Board will pay all costs of maintenance, repair and operation of such project from funds available to it for the maintenance of state highways. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Board may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the operation of the turnpike project.

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

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Last modified: April 3, 2009