15.2-2609 - Covenants relating to issuance of revenue bonds. - Virginia Statutes

§ 15.2-2609. Covenants relating to issuance of revenue bonds.

The governing body of any locality proposing to issue bonds for anyrevenue-producing undertaking may covenant in the ordinance, resolution,trust agreement, indenture or other instrument providing for the issuance ofthe bonds that the rates, rents, fees or other charges for the services andfacilities furnished by, for the use of, or in connection with theundertaking shall be fixed and maintained at the level that will producesufficient revenue to pay the cost of operation and administration, the costof insurance against loss by injury to persons or property, and the principalof and premium, if any, and interest on the bonds when due and payable, andto provide reserves for such purposes. The ordinance, resolution, trustagreement, indenture or other instrument, in order to assure the faithfulobservance of such covenant, may provide for the creation of a commission, orthe appointment of a receiver, vested with such powers as to the managementof the undertaking, or the fixing of rates, rents, fees or other charges, orboth, as the governing body may deem proper.

(Code 1950, § 15-666.27; 1958, c. 640; 1962, c. 623, § 15.1-184; 1991, c.668, § 15.1-227.11; 1997, c. 587.)