{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/15.2-5356.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/15.2-5356.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/15.2-5356.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/15.2-5356.html"}],"law_id":348718,"edition_id":2,"section_id":348718,"structure_id":50000,"section_number":"15.2-5356","catch_line":"Provisions of bonds and trust indentures","history":"Code 1950, \u00a7 32-271; 1973, c. 462, \u00a7 15.1-1591; 1979, c. 719; 1997, c. 587.","full_text":"In connection with the issuance of bonds or the incurring of any obligations and in order to secure the payment of such bonds or obligations, the authority shall have power:\n\n1\n\nTo pledge by resolution, trust indenture, or other contract, all or any part of its rents, fees, or revenues.\n\n2\n\nTo covenant to impose and maintain such schedule of fees and charges as will produce funds sufficient to pay operating costs and debt service.\n\n3\n\nTo covenant with respect to limitations on its right to sell, lease or otherwise dispose of any hospital project or other property of the authority or any part thereof or with respect to limitations on its right to undertake additional hospital projects.\n\n4\n\nTo covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or the right to which may thereafter come into existence or against permitting or suffering any lien thereon.\n\n5\n\nTo provide for the release of rents, fees, and revenues from any pledge and reserve rights and powers in, or the right to dispose of, property, the rents, fees and revenues from which are subject to a pledge.\n\n6\n\nTo covenant as to the bonds to be issued pursuant to any resolution, trust indenture, or other instrument and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof.\n\n7\n\nTo covenant as to what other, or additional, debt may be incurred by it.\n\n8\n\nTo provide for the terms, form, registration, exchange, execution and authentication of bonds.\n\n9\n\nTo provide for the replacement of lost, destroyed, or mutilated bonds.\n\n10\n\nTo covenant as to the use of any or all of its property, real or personal.\n\n11\n\nTo create or authorize the creation of special funds in which there shall be segregated: (i) the proceeds of any loan or grant; (ii) all of the rents, fees and revenues of any hospital project or projects or parts thereof; (iii) any moneys held for the payment of the costs of operation and maintenance of any such hospital projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof; (iv) any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for such payments; and (v) any moneys held for any other reserve or contingency; and to covenant as to the use and disposal of the moneys held in such funds.\n\n12\n\nTo redeem the bonds and covenant for their redemption and provide the terms and conditions thereof.\n\n13\n\nTo covenant against extending the time for the payment of its bonds or interest thereon, directly or indirectly, by any means or in any manner.\n\n14\n\nTo prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given.\n\n15\n\nTo covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.\n\n16\n\nTo vest in an obligee of the authority the right, in the event of the failure of the authority, to observe or perform any covenant on its part to be kept or performed, cure any such default and advance any moneys necessary for such purpose. The moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, lease or contract of the authority with reference thereto.\n\n17\n\nTo covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.\n\n18\n\nTo covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation.\n\n19\n\nTo covenant to surrender possession of all or any part of any hospital project or other property of the authority, the revenues from which have been pledged, upon the happening of any event of default (as defined in the contract) and to vest in an obligee the right without judicial proceeding to take possession; to use, operate, manage and control such hospital project or other property or any part thereof; to collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do; and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee.\n\n20\n\nTo vest in a trustee or trustees the right to enforce any covenant made to secure, to pay, or in relation to the bonds, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant.\n\n21\n\nTo make covenants other than and in addition to the covenants herein expressly authorized, of like or different character.\n\n22\n\nTo execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of the authority may reasonably require.\n\n23\n\nTo make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the authority, tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein. It is the intention hereof to give the authority power to do all things in the issuance of bonds and in the provisions for their security that are not inconsistent with the Constitution of Virginia.\n\n","order_by":null,"text":{"0":{"id":1299943,"text":"In connection with the issuance of bonds or the incurring of any obligations and in order to secure the payment of such bonds or obligations, the authority shall have power:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1299944,"text":"To pledge by resolution, trust indenture, or other contract, all or any part of its rents, fees, or revenues.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1299945,"text":"To covenant to impose and maintain such schedule of fees and charges as will produce funds sufficient to pay operating costs and debt service.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":1299946,"text":"To covenant with respect to limitations on its right to sell, lease or otherwise dispose of any hospital project or other property of the authority or any part thereof or with respect to limitations on its right to undertake additional hospital projects.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":1299947,"text":"To covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or the right to which may thereafter come into existence or against permitting or suffering any lien thereon.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":1299948,"text":"To provide for the release of rents, fees, and revenues from any pledge and reserve rights and powers in, or the right to dispose of, property, the rents, fees and revenues from which are subject to a pledge.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":1299949,"text":"To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, or other instrument and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":1299950,"text":"To covenant as to what other, or additional, debt may be incurred by it.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":1299951,"text":"To provide for the terms, form, registration, exchange, execution and authentication of bonds.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":1299952,"text":"To provide for the replacement of lost, destroyed, or mutilated bonds.","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":1299953,"text":"To covenant as to the use of any or all of its property, real or personal.","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":1299954,"text":"To create or authorize the creation of special funds in which there shall be segregated: (i) the proceeds of any loan or grant; (ii) all of the rents, fees and revenues of any hospital project or projects or parts thereof; (iii) any moneys held for the payment of the costs of operation and maintenance of any such hospital projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof; (iv) any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for such payments; and (v) any moneys held for any other reserve or contingency; and to covenant as to the use and disposal of the moneys held in such funds.","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":1299955,"text":"To redeem the bonds and covenant for their redemption and provide the terms and conditions thereof.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"13":{"id":1299956,"text":"To covenant against extending the time for the payment of its bonds or interest thereon, directly or indirectly, by any means or in any manner.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"14":{"id":1299957,"text":"To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given.","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"15":{"id":1299958,"text":"To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys.","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"16"},"16":{"id":1299959,"text":"To vest in an obligee of the authority the right, in the event of the failure of the authority, to observe or perform any covenant on its part to be kept or performed, cure any such default and advance any moneys necessary for such purpose. The moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, lease or contract of the authority with reference thereto.","type":"section","prefixes":["16"],"prefix":"16","entire_prefix":"16","prefix_anchor":"16","level":1,"prior_prefix":"15","next_prefix":"17"},"17":{"id":1299960,"text":"To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.","type":"section","prefixes":["17"],"prefix":"17","entire_prefix":"17","prefix_anchor":"17","level":1,"prior_prefix":"16","next_prefix":"18"},"18":{"id":1299961,"text":"To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation.","type":"section","prefixes":["18"],"prefix":"18","entire_prefix":"18","prefix_anchor":"18","level":1,"prior_prefix":"17","next_prefix":"19"},"19":{"id":1299962,"text":"To covenant to surrender possession of all or any part of any hospital project or other property of the authority, the revenues from which have been pledged, upon the happening of any event of default (as defined in the contract) and to vest in an obligee the right without judicial proceeding to take possession; to use, operate, manage and control such hospital project or other property or any part thereof; to collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do; and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee.","type":"section","prefixes":["19"],"prefix":"19","entire_prefix":"19","prefix_anchor":"19","level":1,"prior_prefix":"18","next_prefix":"20"},"20":{"id":1299963,"text":"To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay, or in relation to the bonds, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant.","type":"section","prefixes":["20"],"prefix":"20","entire_prefix":"20","prefix_anchor":"20","level":1,"prior_prefix":"19","next_prefix":"21"},"21":{"id":1299964,"text":"To make covenants other than and in addition to the covenants herein expressly authorized, of like or different character.","type":"section","prefixes":["21"],"prefix":"21","entire_prefix":"21","prefix_anchor":"21","level":1,"prior_prefix":"20","next_prefix":"22"},"22":{"id":1299965,"text":"To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government or any purchaser of the bonds of the authority may reasonably require.","type":"section","prefixes":["22"],"prefix":"22","entire_prefix":"22","prefix_anchor":"22","level":1,"prior_prefix":"21","next_prefix":"23"},"23":{"id":1299966,"text":"To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the authority, tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein. It is the intention hereof to give the authority power to do all things in the issuance of bonds and in the provisions for their security that are not inconsistent with the Constitution of Virginia.","type":"section","prefixes":["23"],"prefix":"23","entire_prefix":"23","prefix_anchor":"23","level":1,"prior_prefix":"22"}},"ancestry":[{"id":50000,"edition_id":2,"name":"Bonds","identifier":"3","label":"article","depth":4,"order_by":3,"parent_id":49997,"metadata":{"child_laws":19,"child_structures":0},"date_created":"2026-08-02 02:19:44","date_modified":"2026-08-02 12:29:52","permalink":{"id":1385999,"object_type":"structure","relational_id":50000,"identifier":"3","token":"15.2\/IV\/53\/3","url":"\/15.2\/IV\/53\/3\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49997,"edition_id":2,"name":"Hospital Authorities","identifier":"53","label":"chapter","depth":3,"order_by":11,"parent_id":49964,"metadata":{"child_laws":70,"child_structures":4},"date_created":"2026-08-02 02:19:39","date_modified":"2026-08-02 12:29:52","permalink":{"id":1385801,"object_type":"structure","relational_id":49997,"identifier":"53","token":"15.2\/IV\/53","url":"\/15.2\/IV\/53\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49964,"edition_id":2,"name":"Other Governmental Entities","identifier":"IV","label":"subtitle","depth":2,"order_by":4,"parent_id":49831,"metadata":{"child_laws":721,"child_structures":68},"date_created":"2026-08-02 02:19:12","date_modified":"2026-08-02 12:29:48","permalink":{"id":1384899,"object_type":"structure","relational_id":49964,"identifier":"IV","token":"15.2\/IV","url":"\/15.2\/IV\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49831,"edition_id":2,"name":"Counties, Cities and Towns","identifier":"15.2","label":"title","depth":1,"order_by":46,"parent_id":null,"metadata":{"child_laws":2297,"child_structures":225},"date_created":"2026-08-02 02:16:22","date_modified":"2026-08-02 12:29:22","permalink":{"id":1378281,"object_type":"structure","relational_id":49831,"identifier":"15.2","token":"15.2","url":"\/15.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":348707,"structure_id":50000,"section_number":"15.2-5346","catch_line":"Authority to issue","url":"\/15.2-5346\/","token":"15.2\/IV\/53\/3\/15.2-5346","metadata":false},{"id":348708,"structure_id":50000,"section_number":"15.2-5347","catch_line":"How payable","url":"\/15.2-5347\/","token":"15.2\/IV\/53\/3\/15.2-5347","metadata":false},{"id":348709,"structure_id":50000,"section_number":"15.2-5348","catch_line":"Commissioners not liable","url":"\/15.2-5348\/","token":"15.2\/IV\/53\/3\/15.2-5348","metadata":false},{"id":348710,"structure_id":50000,"section_number":"15.2-5349","catch_line":"Bond indebtedness","url":"\/15.2-5349\/","token":"15.2\/IV\/53\/3\/15.2-5349","metadata":false},{"id":348712,"structure_id":50000,"section_number":"15.2-5350","catch_line":"Form","url":"\/15.2-5350\/","token":"15.2\/IV\/53\/3\/15.2-5350","metadata":false},{"id":348713,"structure_id":50000,"section_number":"15.2-5351","catch_line":"Sale","url":"\/15.2-5351\/","token":"15.2\/IV\/53\/3\/15.2-5351","metadata":false},{"id":348714,"structure_id":50000,"section_number":"15.2-5352","catch_line":"Interim certificates","url":"\/15.2-5352\/","token":"15.2\/IV\/53\/3\/15.2-5352","metadata":false},{"id":348715,"structure_id":50000,"section_number":"15.2-5353","catch_line":"Signature of former officers","url":"\/15.2-5353\/","token":"15.2\/IV\/53\/3\/15.2-5353","metadata":false},{"id":348716,"structure_id":50000,"section_number":"15.2-5354","catch_line":"Purchase by authority","url":"\/15.2-5354\/","token":"15.2\/IV\/53\/3\/15.2-5354","metadata":false},{"id":348717,"structure_id":50000,"section_number":"15.2-5355","catch_line":"Negotiability","url":"\/15.2-5355\/","token":"15.2\/IV\/53\/3\/15.2-5355","metadata":false},{"id":348718,"structure_id":50000,"section_number":"15.2-5356","catch_line":"Provisions of bonds and trust indentures","url":"\/15.2-5356\/","token":"15.2\/IV\/53\/3\/15.2-5356","metadata":false},{"id":348719,"structure_id":50000,"section_number":"15.2-5357","catch_line":"Further provisions as to trust indenture or bond resolution; security required of depository of proceeds of bonds","url":"\/15.2-5357\/","token":"15.2\/IV\/53\/3\/15.2-5357","metadata":false},{"id":348720,"structure_id":50000,"section_number":"15.2-5358","catch_line":"Fees, rents and charges for use of project and facilities; sinking fund","url":"\/15.2-5358\/","token":"15.2\/IV\/53\/3\/15.2-5358","metadata":false},{"id":348721,"structure_id":50000,"section_number":"15.2-5359","catch_line":"Moneys received deemed trust funds","url":"\/15.2-5359\/","token":"15.2\/IV\/53\/3\/15.2-5359","metadata":false},{"id":348723,"structure_id":50000,"section_number":"15.2-5360","catch_line":"Protection and enforcement of rights and duties under chapter","url":"\/15.2-5360\/","token":"15.2\/IV\/53\/3\/15.2-5360","metadata":false},{"id":348724,"structure_id":50000,"section_number":"15.2-5361","catch_line":"Exemption from taxation","url":"\/15.2-5361\/","token":"15.2\/IV\/53\/3\/15.2-5361","metadata":false},{"id":348725,"structure_id":50000,"section_number":"15.2-5362","catch_line":"Bonds legal investments; deposit with public agencies","url":"\/15.2-5362\/","token":"15.2\/IV\/53\/3\/15.2-5362","metadata":false},{"id":348726,"structure_id":50000,"section_number":"15.2-5363","catch_line":"Chapter supplemental; application of other laws; consent of local governing bodies or other agencies not required","url":"\/15.2-5363\/","token":"15.2\/IV\/53\/3\/15.2-5363","metadata":false},{"id":348727,"structure_id":50000,"section_number":"15.2-5364","catch_line":"Liberal construction","url":"\/15.2-5364\/","token":"15.2\/IV\/53\/3\/15.2-5364","metadata":false}],"previous_section":{"id":348717,"structure_id":50000,"section_number":"15.2-5355","catch_line":"Negotiability","url":"\/15.2-5355\/","token":"15.2\/IV\/53\/3\/15.2-5355","metadata":false},"next_section":{"id":348719,"structure_id":50000,"section_number":"15.2-5357","catch_line":"Further provisions as to trust indenture or bond resolution; security required of depository of proceeds of bonds","url":"\/15.2-5357\/","token":"15.2\/IV\/53\/3\/15.2-5357","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/15.2-5356\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1973, chapter 462; in 1979, chapter 719; in 1997, chapter 587<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1386041,"object_type":"law","relational_id":348718,"identifier":"15.2-5356","token":"15.2\/IV\/53\/3\/15.2-5356","url":"\/15.2-5356\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/15.2-5356\/","token":"15.2\/IV\/53\/3\/15.2-5356","dublin_core":{"Title":"Provisions of bonds and trust indentures","Type":"Text","Format":"text\/html","Identifier":"\u00a7 15.2-5356","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

In connection with the issuance of bonds<\/span><\/span> or the incurring of any obligations and in order<\/span> to secure the payment of such bonds<\/span><\/span> or obligations, the authority<\/span> shall have power:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To pledge by resolution, trust indenture<\/span>, or other contract<\/span>, all or any part of its rents, fees, or revenues. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To covenant to impose and maintain such schedule of fees and charges as will produce funds sufficient to pay operating costs and debt service. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To covenant with respect to limitations on its right to sell, lease or otherwise dispose of any hospital project<\/span> or other property of the authority<\/span> or any part thereof or with respect to limitations on its right to undertake additional hospital projects<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> To covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or the right to which may thereafter come into existence or against permitting or suffering any lien<\/span> thereon. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> To provide for the release of rents, fees, and revenues from any pledge and reserve rights and powers in, or the right to dispose of, property, the rents, fees and revenues from which are subject to a pledge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> To covenant as to the bonds<\/span><\/span> to be issued pursuant to any resolution, trust indenture<\/span>, or other instrument and as to the issuance of such bonds<\/span><\/span> in escrow or otherwise, and as to the use and disposition<\/span> of the proceeds thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> To covenant as to what other, or additional, debt may be incurred by it. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> To provide for the terms, form, registration, exchange, execution and authentication of bonds<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> To provide for the replacement of lost, destroyed, or mutilated bonds<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> To covenant as to the use of any or all of its property, real or personal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> To create or authorize the creation of special funds in which there shall be segregated: (i) the proceeds of any loan or grant; (ii) all of the rents, fees and revenues of any hospital project<\/span> or projects or parts thereof; (iii) any moneys held for the payment of the costs of operation and maintenance of any such hospital projects<\/span> or as a reserve for the meeting of contingencies in the operation and maintenance thereof; (iv) any moneys held for the payment of the principal and interest on its bonds<\/span><\/span> or the sums due under its leases or as a reserve for such payments; and (v) any moneys held for any other reserve or contingency; and to covenant as to the use and disposal of the moneys held in such funds. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> To redeem the bonds<\/span><\/span> and covenant for their redemption<\/span> and provide the terms and conditions thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> To covenant against extending the time for the payment of its bonds<\/span><\/span> or interest thereon, directly or indirectly, by any means or in any manner. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> To prescribe the procedure, if any, by which the terms of any contract<\/span> with bondholders may be amended or abrogated, the amount of bonds<\/span><\/span> the holders of which must consent thereto and the manner in which such consent may be given. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition<\/span> of insurance moneys. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> To vest in an obligee of the authority<\/span> the right, in the event of the failure of the authority, to observe or perform any covenant on its part to be kept or performed, cure any such default<\/span> and advance any moneys necessary for such purpose. The moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture<\/span>, lease or contract<\/span> of the authority with reference thereto. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

17.<\/span> To covenant and prescribe as to the events of default<\/span> and terms and conditions upon which any or all of its bonds<\/span><\/span> shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

18.<\/span> To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

19.<\/span> To covenant to surrender possession<\/span> of all or any part of any hospital project<\/span> or other property of the authority, the revenues from which have been pledged, upon the happening of any event of default<\/span> (as defined in the contract<\/span>) and to vest in an obligee the right without judicial proceeding to take possession<\/span>; to use, operate, manage and control such hospital project<\/span> or other property or any part thereof; to collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do; and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

20.<\/span> To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay, or in relation to the bonds<\/span><\/span>, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds<\/span><\/span> or any proportion of them may enforce any such covenant. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

21.<\/span> To make covenants other than and in addition to the covenants herein expressly authorized, of like or different character. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

22.<\/span> To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties, which may contain such covenants and provisions, in addition to those above specified, as the government<\/span> or any purchaser of the bonds<\/span><\/span> of the authority may reasonably require. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

23.<\/span> To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order<\/span> to secure its bonds<\/span><\/span> or, in the absolute discretion of the authority, tend to make the bonds<\/span><\/span> more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein. It is the intention hereof to give the authority power to do all things in the issuance of bonds<\/span><\/span> and in the provisions for their security that are not inconsistent with the Constitution of Virginia. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROVISIONS OF BONDS AND TRUST INDENTURES (\u00a7 15.2-5356)\n\nIn connection with the issuance of bonds or the incurring of any obligations and\nin order to secure the payment of such bonds or obligations, the authority shall\nhave power:\n\n1. To pledge by resolution, trust indenture, or other contract, all or any part\nof its rents, fees, or revenues.\n\n2. To covenant to impose and maintain such schedule of fees and charges as will\nproduce funds sufficient to pay operating costs and debt service.\n\n3. To covenant with respect to limitations on its right to sell, lease or\notherwise dispose of any hospital project or other property of the authority or\nany part thereof or with respect to limitations on its right to undertake\nadditional hospital projects.\n\n4. To covenant against pledging all or any part of its rents, fees and revenues\nto which its right then exists or the right to which may thereafter come into\nexistence or against permitting or suffering any lien thereon.\n\n5. To provide for the release of rents, fees, and revenues from any pledge and\nreserve rights and powers in, or the right to dispose of, property, the rents,\nfees and revenues from which are subject to a pledge.\n\n6. To covenant as to the bonds to be issued pursuant to any resolution, trust\nindenture, or other instrument and as to the issuance of such bonds in escrow or\notherwise, and as to the use and disposition of the proceeds thereof.\n\n7. To covenant as to what other, or additional, debt may be incurred by it.\n\n8. To provide for the terms, form, registration, exchange, execution and\nauthentication of bonds.\n\n9. To provide for the replacement of lost, destroyed, or mutilated bonds.\n\n10. To covenant as to the use of any or all of its property, real or personal.\n\n11. To create or authorize the creation of special funds in which there shall be\nsegregated: (i) the proceeds of any loan or grant; (ii) all of the rents, fees\nand revenues of any hospital project or projects or parts thereof; (iii) any\nmoneys held for the payment of the costs of operation and maintenance of any\nsuch hospital projects or as a reserve for the meeting of contingencies in the\noperation and maintenance thereof; (iv) any moneys held for the payment of the\nprincipal and interest on its bonds or the sums due under its leases or as a\nreserve for such payments; and (v) any moneys held for any other reserve or\ncontingency; and to covenant as to the use and disposal of the moneys held in\nsuch funds.\n\n12. To redeem the bonds and covenant for their redemption and provide the terms\nand conditions thereof.\n\n13. To covenant against extending the time for the payment of its bonds or\ninterest thereon, directly or indirectly, by any means or in any manner.\n\n14. To prescribe the procedure, if any, by which the terms of any contract with\nbondholders may be amended or abrogated, the amount of bonds the holders of\nwhich must consent thereto and the manner in which such consent may be given.\n\n15. To covenant as to the maintenance of its property, the replacement thereof,\nthe insurance to be carried thereon and the use and disposition of insurance\nmoneys.\n\n16. To vest in an obligee of the authority the right, in the event of the\nfailure of the authority, to observe or perform any covenant on its part to be\nkept or performed, cure any such default and advance any moneys necessary for\nsuch purpose. The moneys so advanced may be made an additional obligation of the\nauthority with such interest, security and priority as may be provided in any\ntrust indenture, lease or contract of the authority with reference thereto.\n\n17. To covenant and prescribe as to the events of default and terms and\nconditions upon which any or all of its bonds shall become or may be declared\ndue before maturity and as to the terms and conditions upon which such\ndeclaration and its consequences may be waived.\n\n18. To covenant as to the rights, liabilities, powers and duties arising upon\nthe breach by it of any covenant, condition, or obligation.\n\n19. To covenant to surrender possession of all or any part of any hospital\nproject or other property of the authority, the revenues from which have been\npledged, upon the happening of any event of default (as defined in the contract)\nand to vest in an obligee the right without judicial proceeding to take\npossession; to use, operate, manage and control such hospital project or other\nproperty or any part thereof; to collect and receive all rents, fees and\nrevenues arising therefrom in the same manner as the authority itself might do;\nand to dispose of the moneys collected in accordance with the agreement of the\nauthority with such obligee.\n\n20. To vest in a trustee or trustees the right to enforce any covenant made to\nsecure, to pay, or in relation to the bonds, to provide for the powers and\nduties of such trustee or trustees, to limit liabilities thereof and to provide\nthe terms and conditions upon which the trustee or trustees or the holders of\nbonds or any proportion of them may enforce any such covenant.\n\n21. To make covenants other than and in addition to the covenants herein\nexpressly authorized, of like or different character.\n\n22. To execute all instruments necessary or convenient in the exercise of the\npowers herein granted or in the performance of its covenants or duties, which\nmay contain such covenants and provisions, in addition to those above specified,\nas the government or any purchaser of the bonds of the authority may reasonably\nrequire.\n\n23. To make such covenants and to do any and all such acts and things as may be\nnecessary or convenient or desirable in order to secure its bonds or, in the\nabsolute discretion of the authority, tend to make the bonds more marketable,\nnotwithstanding that such covenants, acts or things may not be enumerated\nherein. It is the intention hereof to give the authority power to do all things\nin the issuance of bonds and in the provisions for their security that are not\ninconsistent with the Constitution of Virginia.\n\nHISTORY: Code 1950, \u00a7 32-271; 1973, c. 462, \u00a7 15.1-1591; 1979, c. 719; 1997,\nc. 587.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}