Chap. 271.—An ACT to amend and re-enact section 2158 of the Code of Virginia,
as last amended by an act approved March 5, 1928, relating to security to be
given by depositories of State money. } [H B 112]

Approved March 24, 1932

I. Be it enacted by the general assembly of Virginia, That section
twenty-one hundred and fifty-eight of the Code of Virginia, as last
amended by an act approved March fifth, nineteen hundred and twenty-
eight, be amended and re-enacted so as to read as follows:

Section 2158. No money shall be deposited in either of said banks
until it shall have secured some person other than the bank itself in its
behalf to enter into a bond, approved and accepted by the finance
board, for a sum in the penalty of at least five thousand dollars, which
sum, however, shall at all times be equal to the amount of money of
the Commonwealth that is on deposit in any such designated State
depository, with condition faithfully to account for and pay over when
and as required whatever amount may at the time such bond is given,
be on deposit in said bank to the credit of the Commonwealth, and
such other sums as may thereafter be deposited in said bank on behalf
of the Commonwealth, and for the faithful discharge by said bank of
all duties and obligations pertaining to it as such depository, and with
the further condition to pay the State interest at the rate of not less
than two per centum per annum on daily balances and with the rate of
two and one-half per centum per annum to be again restored at the
end of the biennium ending June thirtieth, nineteen hundred and thirty-
four. Every such bank shall give as security on its bond, some guar-
anty or surety company doing business in this State.

Any such bank, however, may deposit with the treasurer of the
State, in lieu of such bond, registered or coupon bonds of the State of
Virginia or State highway certificates, registered or coupon bonds of
any municipality, county or subdivision thereof, of the Commonwealth
of Virginia, issued in compliance with the statutes authorizing same,
or registered or coupon bonds of the United States, or interest bearing
United States treasury notes registered in the case of registered bonds
in the name of the bank making such deposit; or gold notes of the
National Credit Corporation, not to exceed ten per centum of the gross
amount of security required, said bonds or notes to be taken at the
market value on date of deposit, to be held upon the same condition
and trust for the protection and indemnity of the State, stipulated above
in relation to the bond to be given hereunder; and shall at the same
time deliver to the treasurer a power of attorney authorizing him to
transfer said bonds or any part thereof, for the purpose of paving any
of the liabilities provided for in this title. The treasurer shall, in the
month of December in each year examine all securities so deposited
with him or held as hereinafter provided for the purpose of ascertain-
ing whether any of them have depreciated or been reduced in value,
and forthwith require any such bank to make good any depreciation or
reduction in value of said securities. The State shall be responsible
for the safe-keeping of all bonds deposited with the treasurer of the
State, and if said bonds or any part of them shall be lost, destroyed, or
misappropriated the State shall make good such loss to the bank mak-
ing the deposit.

The treasurer may in his discretion and only when he deems it an
emergency instead of requiring the actual delivery to him of the securi-
ties above enumerated, take from any such bank an order duly executed
by and under the seal of the said bank, directed to any bank either in
the State of Virginia or without the State, directing and. authorizing
the latter bank to segregate such securities as shall be designated in the
said order and belonging to the former bank, from other securities
which the latter bank may hold, and to hold such securities, until re-
leased by the treasurer of Virginia, or his duly authorized deputy, upon
the same condition and trust for the protection and indemnity of the
State stipulated above in relation to the bond to be given under this
section; provided the treasurer shall in each case first satisfy himself
that such securities belonging to the former bank are held by the said
latter bank, and shall secure from the said bank holding such securities
an agreement to so hold such designated securities subject to and upon
the conditions herein set forth.

The treasurer is further authorized in his discretion and only in
cases of emergencies to accept bonds or notes of railroads or industrial
corporations which are legal investment for State and national banks
and which have not defaulted on interest payments within the past five
years, but in no case shall the bonds or notes of railroads or industrial
corporations, herein mentioned, be held, at any one time, for more than
sixty consecutive days.

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