CHAPTER 184

AN ACT to amend and reenact §§ 2-154.1, 2-288, 15-21, 15-605.10, 15-615.1,
15-688, 15-652, 22-102, 28-82, 28-81 and 51-125 of the Code of Vir-
ginia; to amend the Code of Virginia by adding in Title 2 thereof a
new chapter numbered 17 consisting of two sections numbered 2-297
and 2-298; to amend and reenact § 11 of Chapter $08 of the Acts of
Assembly of 1944, approved March 29, 1944; to amend and reenact
§ 11 of Chapter 161 of the Acts of Assembly of 1946, approved
March 11, 1946; to amend and reenact § 9 of Chapter 278 of the Acts
of Assembly of 1946, approved March 26,1946; and to repeal §§ 2-291,
2-292, 2-298, 15-22, as amended, 15-589, 15-590, 22-56, 82-254,
88-255.86, and 88-255.57 of the Code of Virginia, all relating to invest-
ment of funds under the control of certain public officials. [H 150]

Approved February 29, 1956

Be it enacted by the General Assembly of Virginia:

1. That §8§ 2-154.1, 2-288, 15-21, 15-605.10, 15-615.1, 15-638, 15-652,
22-102, 23-82, 23-81, and 51-125 of the Code of Virginia be amended and
reenacted and that the Code of Virginia be amended by adding in Title 2
thereof a new chapter numbered 17 consisting of 2 sections numbered
2-297 and 2-298 as follows: 5s

§ 2-154.1. The Governor and State Treasurer, acting jointly, are
authorized and empowered, whenever in their opinion there are funds in
the State treasury in excess of the amount required to meet the current
needs and demands of the State, to invest such excess funds in * securities
that are legal investments under the laws of the State for public funds.
The funds shall be invested in such * of said securities as, in their judg-
ment, will be readily convertible into money.

§ 2-288.The moneys belonging to the Sinking Fund shall be invested
‘by the Treasury Board in * securities that are legal investments under
the laws of the Commonwealth for sinking funds, and all interest received
on such investments shall become a part of the Sinking Fund. The princi-
pal of, and interest on, all of the funded bonds of the Commonwealth shall

paid by the Treasury Board out of the Sinking Fund provided for that
purpose, and there is hereby appropriated out of the Sinking Fund a sum
sufficient for that purpose.

§ 15-21. The boards of supervisors of the counties and the councils
of the cities and towns of this Commonwealth may invest sinking funds
in their hands or under their control, respectively, in * securities that are
legal investments under the laws of the Commonwealth for public sinking
funds, to such extent as any such body so investing the same shall deem
proper or expedient.

Nothing in this section shall be deemed to repeal any provision of
any city or town charter prohibiting the investment of any sinking fund
in any of the securities, investment in which is otherwise hereby author-
ize

d.

§ 15-605.10. Pending the application of the proceeds of any bonds
authorized under the provisions of this article to the purpose or purposes
for which such bonds have been authorized, all or any part of such pro-

s may be invested, upon resolution of the governing body of the
county authorizing such bonds, in * securities that are legal investments
under the laws of the Commonwealth for public sinking funds, which
shall mature, or which shall be subject to the redemption by the holder
thereof at the option of such holder, not later than eighteen months after
the date of such investment. Any * security so purchased as investment
of the proceeds of such bonds shall be deemed at all times to be a part of
CH. 184] ACTS OF ASSEMBLY 183

such proceeds, and the interest accruing thereon and any profit realized
from such investment shall be credited to such proceeds. Any * security
so purchased shall be held by the treasurer of the county as custodian
thereof and shall be sold by the county treasurer upon resolution of the
governing board of the county directing such sale, at the best price obtain-
able, or presented for redemption, whenever it shall be necessary, as
determined by such resolution, so to do in order to provide moneys to
meet the purposes for which the bonds of the county shall have been
authorized.

§ 15-615.1. Pending the application of the proceeds of any bonds
of any city or town, authorized under the provisions of this article, to
the purpose or purposes for which such bonds have been authorized, all
or any part of such proceeds may be invested upon resolution of _the
governing body of the city or town authorizing such bonds, in * securities
that are legal investments under the laws of the Commonwealth for public
sinking funds, which shall mature, or which shall be subject to the re-
demption by the holder thereof at the option of such holder, not later
than eighteen months after the date of such investment. Any * security
so purchased as investment of the proceeds of such bonds shall be deemed
at all times to be a part of such proceeds, and the interest accruing
thereon and any profit realized from such investment shall be credited to
such proceeds. Any * security so purchased shall be held by the treasurer,
director of finance or other chief finance officer of the city or town as
custodian thereof and shall be sold by the city or town treasurer, director
of finance or other chief finance officer, upon resolution of the governing
board of the city or town directing such sale, at the best price obtainable,
or presented for redemption, whenever it shall be necessary, as deter-
mined by such resolution, so to do in order to provide moneys to meet the
purposes for which the bonds of the city or town shall have been
authorized.

§ 15-638. All money collected for the payment of refunding bonds
issued under this article, whether from the proceeds of taxes levied for
such purpose or from the proceeds of delinquent taxes pledged for such
purpose, shall be deposited in a solvent bank or banks either within or
without the city or town, and shall be secured either by a surety bond
or bonds given the council for the protection of the deposit written by
some solvent surety or fidelity company authorized to do business in this
State, or by the deposit of collateral security acceptable to the council of
not less in amount than the deposit so secured; provided that the fore-
going provisions of this section shall be construed as an additional or
supplementary requirement for the security of such funds and shall not
operate to release the responsible officials from the necessity of compliance
with any other applicable provisions of law.

In lieu of retaining such sinking funds on deposit as in this section
provided, the council may invest all or part of such funds in * securities
that are legal investments under the laws of the Commonwealth for public
sinking funds.

§ 15-652. All money collected for the payment of refunding bonds
issued under this article, whether from the proceeds of taxes levied for
such purpose or from the proceeds of delinquent taxes pledged for such
purpose, shall be deposited in a solvent bank or banks either within or
without the county, and shall be secured either by a surety bond or bonds
given the governing body for the protection of the deposit written by
some solvent surety or fidelity company authorized to do business in this
State, or by deposit of collateral security acceptable to the governing body
not less in amount than the deposit so secured; provided, that the fore-
going provisions of this section shall be construed as an additional or
supplementary requirement for the security of such funds and shall not
operate to release the responsible officials from the necessity of com-
pliance with any other applicable provisions of law. . . .

In lieu of retaining such sinking funds on deposit as in this section
provided, the governing body may invest all or part of such funds in *
securities that are legal investments under the laws of the Commonwealth
for public sinking funds. .

§ 22-102. The State Board shall invest the capital and unappropri-
ated income of the Literary Fund in * securities that are legal invest-
ments under the laws of the State for public sinking funds. Whenever,
in accordance with this section, bonds made by one or more of the county
boards or city school boards of the several counties or cities of the State
are purchased on account of the Literary Fund, a lien in favor of the
fund is hereby created against all of the funds and income of the county
or city, as well as upon the property upon which the loan is made. The
State Board may call in any such investment, or any heretofore made, and
reinvest the same as aforesaid, whenever deemed proper, for the preser-
vation, security or improvement of the Fund. Whenever, in accordance
with this section, the board shall invest * in bonds of this State, no
premium shall be required or paid on such investment. All securities for
money belonging to the Literary Fund shall be deposited with the State
Treasurer for safekeeping, who shall return with his annual report, a
list thereof with a statement of their value.

§ 23-82. Whenever any person shall deposit in the State treasury,
or bequeath money to be so deposited, or devise or bequeath property
to be sold and the proceeds to be so deposited, for the benefit of any of
the educational institutions in the State, to such an amount that the in-
terest thereof will be sufficient to educate and maintain thereat one or
more cadets or students, the fund shall be invested in * securities that are
legal investments under the laws of the State for public funds in the
name and for the benefit of the institution.

§ 23-81. Any person may deposit in the State treasury, or bequeath
money, stocks or public bonds of any kind to be so deposited, or grant,
devise or bequeath property, real or personal, to be sold and the proceeds
to be so deposited, in sums not less than one hundred dollars, which shall
be invested in * securities that are legal investments under the laws of
the State for public funds for the benefit of the University, and in such
case the interest or dividends accruing on such * investments shall be
paid to the rector and visitors of the University, to be by them appro-
priated to the general purposes thereof, unless some particular appro-
priation shall have been designated by the donor or testator, as herein-
after provided. .

§ 51-125. Any and all cash assets and funds on hand at any time,
not necessary for immediate payment of pensions or benefits hereunder,
shall be invested in * securities that are legal investments under the laws
of the Commonwealth for public sinking funds. Any and all funds raised
by any policemen’s pension and retirement board created under this chap-
ter, for the payment of pensions and benefits, shall be paid over to the
treasurer of such board and deposited by him to the credit of the board,
and paid out by him as hereinbefore provided.

CHAP 17

Investment of Public Funds
§ 2-297. The Commonwealth, all public officers, municipal corpora-
tions, political subdivisions and all public bodies of the Commonwealth
may properly and legally invest any sinking funds belonging to them or
within their control in the following securities:
(1) Obligations of the Commonwealth—Bonds, notes and other evi-
dences of indebtedness of the State of Virginia, and securities uncondt-
CH. 184] ACTS OF ASSEMBLY 185

tionally guaranteed as to the payment of principal and interest by the
State of Virginia.

_ (2) Obligations of the United States, etc—Bonds, notes and other
obligations of the United States, and securities unconditionally guaran-
teed as to the payment of principal and interest by the United States, or
any agency thereof.

(8) Obligations of Virginia counties, cities, ete—Bonds, notes and
other evidences of indebtedness of any county, city, town, district, author-
tty or other public body of the State of Virginia upon which there ts no
default; provided, that such bonds, notes and other evidences of indebted-
ness of any county, city, town, district, authority or other public body are
either direct legal obligations of, or those unconditionally guaranteed as
to the payment of principal and interest by the county, city, town, district,
authority or other public body in question; and revenue bonds issued by
agencies or authorities of the State of Virginia or its political subdivisions
upon which there is no default.

(4) Obligations of International Bank for Reconstruction and Devel-
opment—Bonds and other obligations issued, guaranteed or assumed by
the International Bank for Reconstruction and Development.

§ 2-298. The Commonwealth, all public officers, municipal corpora-
tions, political subdivisions and all public bodies of the Commonwealth
may properly and legally invest any and all moneys or other funds belong-
ing to them or within their control other than sinking funds in securities
that are legal investments for fiduciaries under the provisions of clauses
(1), (2), (8), (4), (5) and (24) of § 26-40 of the Code of Virginia, as
amended, but this section shall not apply to retirement funds to be invested
pursuant to § 51-76.

2. That Section 11 of Chapter 303 of the Acts of Assembly of nineteen
hundred forty-four, approved March 29, 1944, be amended and reenacted
as follows:

Section 11. Any and all cash assets and funds on hand at any time
not necessary for immediate payment of pensions or benefits hereunder
shall be invested in * securities that are legal investments under the laws
of the Commonwealth for public sinking funds.

Any and all funds raised by any policemen’s pension and retirement
board created under this act for the payment of pensions and benefits
shall be paid over to the treasurer of the board and deposited by him to
its credit and paid out by him as hereinbefore provided.

3. That Section 11 of Chapter 161 of the Acts of Assembly of 1946,
approved March 11, 1946, be amended and reenacted as follows:

Section 11. Any and all cash assets and funds on hand at any time
not necessary for immediate payment of pensions or benefits hereunder
may be invested in * securities that are legal investments under the laws
of the Commonwealth for public sinking funds.

Any and all funds raised by any board created under this act for the
payment of pensions and benefits shall be paid over to the treasurer of
the board and deposited by him to its credit and paid out by him as here-
inbefore provided.

4. That Section 9 of Chapter 278 of the Acts of Assembly of 1946,
approved March 26, 1946, be amended and reenacted as follows:

Section 9. Any and all cash assets and funds on hand at any time
not necessary for immediate payment of pensions or benefits hereunder
may be invested in * securities that are legal investments under the laws
of the Commonwealth for public sinking funds.

Any and all funds raised by any board created under this act for the
payment of pensions and benefits shall be paid over to the treasurer of
the board and deposited by him to its credit and paid out by him as here
inbefore provided.
5. That §§ 2-291, 2-292, 2-298, 15-22, as amended, 15-589, 15-590, 22-56,
82-254, 38-255.36 and 33-255.57 are hereby repealed.