State Codes and Statutes
Statutes > Virginia > Title-62-1 > Chapter-22 > 62-1-231§ 62.1-231. Pledge of loans to secure bonds of Authority.
The Authority is empowered at any time and from time to time to transfer fromthe Fund to banks or trust companies designated by the Authority any or allof the assets of the Fund to be held in trust as security for the payment ofthe principal of and premium, if any, and interest on any or all of the bonds(as defined in § 62.1-199) of the Authority. The interests of the Fund in anyobligations so transferred shall be subordinate to the rights of the trusteeunder the pledge. To the extent funds are not available from other sourcespledged for such purpose, any payments of principal and interest received onthe assets transferred or held in trust may be applied by the trustee thereofto the payment of the principal of and premium, if any, and interest on suchbonds of the Authority to which the obligations have been pledged, and, ifsuch payments are insufficient for such purpose, the trustee is empowered tosell any or all of such assets and apply the net proceeds from the sale tothe payment of the principal of and premium, if any, and interest on suchbonds of the Authority. Any assets of the Fund transferred in trust as setforth above and any payments of principal, interest or earnings receivedthereon shall remain part of the Fund but shall be subject to the pledge tosecure the bonds of the Authority and shall be held by the trustee to whichthey are pledged until no longer required for such purpose by the terms ofthe pledge. On or before the tenth day of January in each year, the Authorityshall transfer, or shall cause the trustee to transfer, to the Fund anyassets transferred or held in trust as set forth above which are no longerrequired to be held in trust pursuant to the terms of the pledge.
(1986, c. 415.)
