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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>348719</law_id><section_number>15.2-5357</section_number><catch_line>Further provisions as to trust indenture or bond resolution; security required of depository of proceeds of bonds</catch_line><edition url="https://vacode.org/2026/" slug="2026" current="TRUE" last_updated="2026-08-02">2026</edition><structure><unit label="title" level="1" order_by="46" identifier="15.2">Counties, Cities and Towns</unit><unit label="subtitle" level="2" order_by="4" identifier="IV">Other Governmental Entities</unit><unit label="chapter" level="3" order_by="11" identifier="53">Hospital Authorities</unit><unit label="article" level="4" order_by="3" identifier="3">Bonds</unit></structure><text>
						<section><p>In the discretion of the <span class="dictionary">authority</span>, any <span class="dictionary"><span class="dictionary">bonds</span></span> issued under the provisions of this chapter may be secured by a <span class="dictionary">trust indenture</span> by and between the <span class="dictionary">authority</span> and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within the Commonwealth. Such <span class="dictionary">trust indenture</span> or the resolution authorizing the issuance of such <span class="dictionary"><span class="dictionary">bonds</span></span> may pledge or assign the fees, rents and other charges to be received or proceeds of or rights under any <span class="dictionary">contract</span> or <span class="dictionary">contracts</span> pledged. Such <span class="dictionary">trust indenture</span> or resolution 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 <span class="dictionary">law</span>, including particularly the appointment of a receiver for any <span class="dictionary">hospital project</span> or other property of the <span class="dictionary">authority</span> from which the revenues have been pledged and such other provisions as have hereinabove been specifically authorized to be included in any <span class="dictionary">trust indenture</span> or resolution of the <span class="dictionary">authority</span>. Any bank or trust company incorporated under the <span class="dictionary">laws</span> of the Commonwealth acting as depository of the proceeds of <span class="dictionary"><span class="dictionary">bonds</span></span> or of revenues or other moneys may furnish such indemnifying <span class="dictionary"><span class="dictionary">bonds</span></span> or pledge such securities as may be required by the <span class="dictionary">authority</span>. Any such <span class="dictionary">trust indenture</span> or resolution may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict individual rights of action by bondholders. In addition to the foregoing, any such <span class="dictionary">trust indenture</span> or resolution may contain such other provisions as the <span class="dictionary">authority</span> may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such <span class="dictionary">trust indenture</span> or resolution may be treated as a part of the cost of the operation of a project.</p></section></text><history>Code 1950, &#xA7; 32-271.1; 1973, c. 462, &#xA7; 15.1-1592; 1979, c. 719; 1997, c. 587.</history><metadata></metadata></law>
