Chap. 139.——An ACT to amend and re-enact Section 5325 of the Code of Vir-
ginia, in relation to investment of funds by guardians, and to enlarge the
section to apply to other fiduciaries. [fH B 191]

Approved March 14, 1938

1. Be it enacted by the General Assembly of Virginia, That sec-
tion fifty-three hundred and twenty-five of the Code of Virginia be
amended and re-enacted so as to read as follows:

Section 5325. Whenever a guardian shall collect any principal
or interest belonging to his ward, he shall have sixty days to invest
or loan the same, and shall not be charged with interest thereon until
the expiration of said time, unless he shall have made the investment
or loan previous thereto, in which case, he shall be charged with inter-
est from the time the investment or loan is made; provided, however,
that such guardian or any other fiduciary shall only be required to exer-
cise reasonable diligence in lending or investing trust funds, and if such
guardian or other fiduciary is reasonably diligent in lending or invest-
ing such funds he shall be accountable only for such interest and profits
as may be earned. If any funds be loaned at a rate of interest less
than six per centum per annum without the previous consent of the
court having jurisdiction of said trust funds, except in the classes of
securities bearing less than that rate of interest now or hereafter per-
mitted by law, the burden shall be on the guardian or other fiduciary,
before his settlement is approved by the court, to show to the satis-
faction of the court that after exercising reasonable diligence he was
unable to lend said funds at six per centum interest on good security
and that the rate of interest secured was reasonable and proper under
all of the circumstances and fair to the beneficiary or beneficiaries of
the funds. ,

This section shall not be construed as altering the provisions of
any will, deed or other instrument giving to the guardian or other
fiduciary discretion as to the rate of interest, character of security,
nature of investment under the trust, or time within which the trust
funds are to be loaned or invested.