V.I. Code tit. 29, § 1310 (2019)
2019 US Virgin Islands Code|Title 29 - Public Planning and Development|Chapter 23 - Hotel Development Program|§ 1310. Hotel Development Notes security

 (a) A series of Hotel Development Notes may be secured by a trust agreement or trust indenture between the Notes Issuer and a trustee having trust powers, or by a secured loan agreement or other instrument giving power to the trustee by means of which the Notes Issuer may do the following: (1) Make and enter into any and all agreements and covenant with the trustee or the holders of the Hotel Development Notes that the Notes Issuer may determine to be necessary or desirable, including, without limitation, covenants and agreement as to any of the following: (A) the application, investment, deposit, use and disposition of the proceeds of Hotel Development Notes and the other monies, securities, and property; (B) the assignment by the Notes Issuer of its rights in any agreement; (C) the terms and conditions upon which additional Hotel Development Notes may be issued by the Notes Issuer; provided that the term of any Hotel Development Notes may not exceed 30 years from the date of issuance; (D) providing for the appointment of a trustee to act on behalf of noteholders; and (E) vesting in a trustee, for the benefit of the holders of Hotel Development Notes, or in the noteholders directly, such rights and remedies as the Notes Issuer determines. (2) Pledge, mortgage or assign monies, agreements, property or other assets of the PFA or the Government, either presently in hand or to be received in the future, or both. (3) Provide for bond insurance and letters of credit, or otherwise enhance the credit of and security for the payment of its Hotel Development Notes; and (4) Provide for any other matters of like or different character that in any way affects the security for or payment of the Hotel Development Notes. (b)  (1) The Government pledges to contract and agree with the holders of any Hotel Development Notes issued pursuant to this chapter that, subject to the provisions of the financing documents, the Government may not limit or alter the basis upon which available revenues are received, allocated, applied and pledged pursuant to this chapter; may not impair the contractual obligations of the Notes Issuer to fulfill the terms of any agreement made with the holders of the Hotel Development Notes, may not in any way impair the rights or remedies of the holders, and may not in any way alter the exemptions from taxation provided for in this chapter, until the Hotel Development Notes and the interest on the Hotel Development Notes, with interest on any unpaid installment of interest and all costs and expenses in connection with any suit, action or proceeding by or on behalf of the holders, are fully met and discharged. (2) The Notes Issuer may include the pledge and agreement of the Government as part of the contract with the holders of any of its notes. This chapter constitutes a contract between the Government and the holder of the Hotel Development Notes authorized by this chapter. (3) To the extent that any acts or resolutions of the PFA may be in conflict with this chapter, this chapter is controlling. (c) Any pledge made by the Notes Issuer with respect to its Hotel Development Notes is valid and binding from the time the pledge is made. The money or property so pledged and thereafter received is immediately subject to the lien of the pledge without physical delivery or further act, and the lien of the pledge is valid and binding as against all parties having any claim of any kind in tort, contract or otherwise against the Notes Issuer irrespective of whether the parties have notice. Neither the resolution, trust agreement, nor any other instrument by which a pledge is created is required to be recorded or filed under the provisions of the Uniform Commercial Code to be valid, binding, and effective against the parties. (d) Pursuant to the authority granted in section 8(b) of the Revised Organic Act of the Virgin Islands, the principal and interest of Hotel Development Notes issued under this chapter are exempt from taxation by the Government of the Virgin Islands.