36-35 - Contracts and covenants with federal government, etc.; agreements to sell. - Virginia Statutes

§ 36-35. Contracts and covenants with federal government, etc.; agreements tosell.

In any contract or amendatory or superseding contract for a loan and annualcontributions heretofore or hereafter entered into between a housingauthority and the federal government with respect to any housing projectundertaken by the housing authority, any such housing authority is authorizedto make such covenants (including covenants with holders of obligations ofthe authority issued for purposes of the project involved) and to confer uponthe federal government such rights and remedies, as the housing authoritydeems necessary to assure the fulfillment of the purposes for which theproject was undertaken. In any such contract, the housing authority may,notwithstanding any other provisions of law, agree to sell and convey theproject (including all lands appertaining thereto) to which such contractrelates to the federal government upon the occurrence of such conditions, orupon such defaults on obligations for which any of the annual contributionsprovided in such contract are pledged, as may be prescribed in such contract,and at a price (which may include the assumption by the federal government ofthe payment, when due, of the principal of and interest on outstandingobligations of the housing authority issued for purposes of the projectinvolved) determined as prescribed therein and upon such other terms andconditions as are therein provided. Any such housing authority is herebyauthorized to enter into such supplementary contracts, and to execute suchconveyances, as may be necessary to carry out the provisions hereof.Notwithstanding any other provisions of law, any contracts or supplementarycontracts or conveyances made or executed pursuant to the provisions of thissection shall not be or constitute a mortgage within the meaning or for thepurposes of any of the laws of this Commonwealth.

(1942, p. 326; Michie Code 1942, § 3145(4o).)