Code of Virginia § 15.2-5209. Provisions to secure payment of bonds.

190 words·~1 min read·/va/title-15-2/chapter-52/15-2-5209

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Any commission resolution authorizing the issuance of any bonds may contain provisions, which shall be a part of the contract with the holders of the bonds,

(i)pledging any or all revenues of the hospital or health center to secure the payment of the interest on such bonds and to create a sinking fund to retire the principal thereof at maturity;

(ii)providing for the granting of a lien on, or the creation of a security interest in, any property, real or personal, of the commission as security for the payment of the principal of, and interest on, such bonds and the due and punctual performance of any agreements made in connection therewith;

(iii)providing for such schedule of fees and charges as will produce funds sufficient to pay operating costs and debt service until such bonds are retired; and

(iv)prescribing the rights, obligations, powers and duties of the commission, the trustee under any trust indenture under which the bonds are issued, and the bondholders, in connection with or pertaining to such bonds.

Code 1950, § 32-283; 1979, c. 719, § 15.1-1523; 1994, c. 759 ; 1997, c. 587.