V.I. Code tit. 22, § 1508 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 59 - Virgin Islands Windstorm and Earthquake Insurance Authority|§ 1508. Specific powers with respect to bonds

 (a) Pursuant to the authority vested in the Government of the Virgin Islands by section 8(b)(i) of the Revised Organic Act of the Virgin Islands, as amended, the Government of the Virgin Islands hereby grants and empowers the Authority to issue and sell bonds from time to time and have outstanding at any one time, exclusive of bonds issued solely for the purpose of exchanging the same in return for the cancellation of bonds either issued by the Authority or assumed by it, bonds not in excess of $25,000,000, in aggregate principal amount, in addition to all sums that the Legislature of the Virgin Islands has authorized or may authorize separately for particular purposes; provided, however, that refunding bonds of the Authority issued solely for the purpose of applying the proceeds thereof to the payment for, or purchase of, bonds issued by the Authority or assumed by it, shall not be included in computing any such limitation until six (6) months after their sale. (b) Payment of the bonds of the Authority may be secured by a pledge of or a mortgage or other lien on all or any part of its real or personal properties, notes, loans, contracts, gross or net rates, fees, revenues, other income or bond proceeds to which the rights of the Authority then exist or may thereafter come into existence, by pledge of or lien on any bonds, notes, lease or sale obligations or other obligations of the Government of the Virgin Islands or any agency, instrumentality, commission, authority, or political subdivision thereof, or on any loan, guaranty, grant, or contribution, or parts thereof, from the United States, any agency, instrumentality, commission, authority or other political subdivision thereof, the Government of the Virgin Islands or by letter of credit, insurance or other credit enhancement device or any other source. It is the intention hereof that any pledge of revenues or other monies, or of a revenue producing contract or contracts made by the Authority to secure bonds or any other obligation of the Authority shall be valid and binding from the time when the pledge is made; that the revenues, or other monies or proceeds of any contract or contracts so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. (c) In accordance with section 8(b) of the Revised Organic Act of the Virgin Islands, as amended, the bonds shall be exempt as to principal and interest from taxation by the Government of the Virgin Islands, or by any political subdivision of the Virgin Islands. (d) Bonds shall be authorized by resolution or resolutions of the Board, and shall comply with all pertinent provisions of the Revised Organic Act of the Virgin Islands, as amended, or such other provisions of applicable federal law as may be in effect at the time. Except as otherwise provided for by said act or other federal law, bonds may be issued in one or more series and shall bear such date or dates, mature in such amounts and at such time or times, be subject to redemption prior to maturity at such time or times and upon such terms, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be issued as serial bonds, sinking fund bonds or term bonds or any combination thereof, be noninterest bearing or bear interest at such rate or rates payable currently or compounded, including rates that vary in accordance with a formula or procedure set forth or referred to in the bonds, be general obligations of the Authority payable out of any revenues of such Authority, subject only to any agreement with the holders of particular bonds, pledging any particular revenues of the Authority, or be revenue bonds secured in such manner as the Authority may determine, be executed by manual or facsimile signature of the chairman of the Authority in such manner, and be payable in such medium of payment, at such place or places, may be declared or become due at such time before the maturity date thereof, may be authenticated in such manner and upon compliance with such conditions, and may contain such other terms and covenants as the Board may provide. (e) The bonds shall be sold at public or private sale, as permitted by the Revised Organic Act of the Virgin Islands, as amended, or other applicable federal laws, at such price or prices as the Authority may determine. (f) In case any of the members or officers of the Authority whose signatures appear on any bonds or coupons shall cease to be such members or officers before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such members or officers had remained in office until such delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued by the Authority pursuant to this chapter shall be negotiable for all purposes, subject only to the provisions of bonds for registration. (g) Neither the members of the Authority nor any person duly authorized to execute the bonds shall be liable personally on the bonds or be subject to any liability by reason of the issuance thereof. (h) In any suit, action, or proceedings involving the validity or enforceability of any bond of the Authority or the security therefor, any such bond reciting in substance that it has been issued by the Authority to aid in financing a designated facility, program or project shall be conclusively deemed to have been issued for such purpose, and the facility, program or project shall be conclusively deemed to have been undertaken or acquired in accordance with the provisions of this chapter. (i) Upon the issuance of the bonds, the Authority to issue the bonds, the regularity thereof, the validity of any pledge or lien, in connection therewith, and the validity and legality of the resolution authorizing the bonds and the proceedings so adopted shall be conclusively presumed. (j) In any resolution, trust indenture or other contractual commitment authorizing the issuance of bonds, the Authority may contract with the holders of the bonds to undertake and obligate itself by such commitments, as long as the bonds are outstanding and unpaid, as are deemed by the Board to be necessary or appropriate for the protection of the bondholders and the marketability of the bonds, and, specifically in addition to any other provisions, may: (1) covenant as to the disposition of the entire gross or net revenues and present or future income of the Authority, of any loans made or bonds purchased by the Authority or of any other property, real or personal, of the Authority, including the pledging of all or any part thereof to secure payment of the bonds and the interest thereon; (2) covenant against making, permitting or suffering any pledge or other lien on all or any part of its receipts, revenues or other income, or loans made or bonds purchased or other real or personal property to which its right or title then exists or may thereafter come into existence; covenant with respect to limitations on any sale, lease or other disposition of the property of the Authority or any part or parts thereof; and covenant as to what other or additional debts or obligations may be incurred by it; (3) covenant as to the bonds then or thereafter to be issued, as to the issuance of such bonds in escrow or otherwise, as to the use and disposition of the proceeds thereof, and as to the limitations on the issuance of additional bonds; covenant against extending the time for the payment of its bonds or interest thereon; and covenant for redemption of the bonds and provide for the terms and conditions thereof; (4) covenant as to the rates, fees, rentals, and other charges to be fixed and collected, the amount to be raised each year or other period of time thereby, and as to the use and disposition to be made thereof; (5) create or authorize the creation of special funds or reserves for moneys held for debt service, reserves, or other purposes; and covenant as to the use, disposition and investment of the moneys held in such funds; (6) covenant as to the use, maintenance and replacement of any or all of its real or personal property, the amount and kind of insurance to be carried thereon and the use and disposition of insurance moneys; (7) prescribe the procedure, if any, by which the terms of the bonds, resolution, or any other contract with the bondholders may be modified, the amount of bonds, the holders of which must consent thereto, and the manner in which such covenant may be given; (8) covenant as to and prescribe the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived; (9) covenant as to the rights, liabilities, powers and duties arising upon the nonperformance by the Authority of any of its covenants, conditions, or obligations, including the rights and remedies of bondholders which may be in addition to remedies specified in this chapter; (10) vest in a trustee or trustees the right to enforce the payment of the bonds or any covenants securing or relating to the bonds and the right, in the event of a default by the Authority, to take possession of and use, operate and manage the Authority or any part or parts thereof or any funds connected therewith, to enforce the terms and conditions of any loans of the Authority then outstanding, and to collect the rates, fees, revenues, or other income arising therefrom and to dispose of such moneys in accordance with the agreement of the Authority with the holders of the bonds; provide for the powers and duties of such trustee or trustees which may be a national banking association or a bank or trust company organized under the laws of the United States, or of the Virgin Islands or any state of the United States, and limit the liabilities thereof; and provide the terms and conditions upon which the holders of the bonds or any proportion of them may enforce any covenant or rights securing or relating to the bonds; and (11) exercise all or any part or combination of the powers herein granted; make covenants and do any and all such acts and things not inconsistent with this chapter as may be necessary and desirable in order to secure its bonds, or as may tend to make the bonds more marketable notwithstanding that such covenants, acts or things may not be enumerated herein.