33.1-286 - Sinking fund. - Virginia Statutes

§ 33.1-286. Sinking fund.

The tolls and all other revenues derived from the project or projects forwhich a single issue of bonds is issued, except such part thereof as may berequired to pay the cost of maintaining, repairing and operating such projector projects and to provide such reserves therefor as may be provided for inthe resolution authorizing the issuance of such bonds or in the trustindenture, shall be set aside at such regular intervals as may be provided insuch resolution or such trust indenture, in a sinking fund which is herebypledged to, and charged with the payment of: (1) the interest upon such bondsas such interest shall fall due, (2) the principal of the bonds as the sameshall fall due, (3) the necessary charges of paying agents for payingprincipal and interest, and (4) any premium upon bonds retired by call orpurchase as herein provided.

The use and disposition of such sinking fund shall be subject to suchregulations as may be provided in the resolution authorizing the issuance ofthe bonds or in the trust indenture but, except as may otherwise be providedin such resolution or trust indenture, such sinking fund shall be a fund forall such bonds without distinction or priority of one over another. Subjectto the provisions of the resolution authorizing the issuance of the bonds orof the trust indenture, any moneys in such sinking fund in excess of anamount equal to one year's interest on all bonds then outstanding may beapplied to the purchase or redemption of bonds. All bonds so purchased orredeemed shall forthwith be cancelled and shall not again be issued.

(Code 1950, § 33-246; 1970, c. 322.)