CHAPTER 84

AN ACT to amend and reenact §§ 2-181, as amended, and 58-944 of the
Code of Virginia, relating to depositories of public funds and to repeal
§ 2-188 of the Code of Virginia, relating to certain securities which
may be posted with the treasurer by depositories of public funds.
Be it enacted by the General Assembly of Virginia:

1. That §§ 2-181, as amended, and 58-944 of the Code of Virginia be
amended and reenacted as follows:

§ 2-181. Any such bank, however, may deposit with the State Treas-
urer, or, with the approval of the State Treasurer, with the Federal Re-
serve Bank of Richmond, to be held subject to the order of the State
Treasurer, in lieu of such bond * securities of the character authorized as
legal investments under the laws of this Commonwealth for public sinking
funds. All such * securities shall be taken at the market value on the
date of deposit, and shall be held upon the same condition and trust for
the protection and indemnity of, and for the payment of interest to the
State, stipulated above in relation to the bond given under § 2-179. Such
banks shall at the same time deliver to the State Treasurer a power of
attorney authorizing him to transfer the * securities deposited, or any
part thereof, for the purpose of paying any of the liabilities provided for
in this title.

The State Treasurer shall, in the month of December of each year,
examine all securities so deposited with him or held as hereinafter pro-
vided for the purpose of ascertaining whether any of them have depre-
ciated or been reduced in value, and forthwith require any such bank to
make good any depreciation or reduction in value of the securities.

§ 58-944. No money received by a county treasurer shall be depos-
ited with any depository of the treasurer’s county selected and approved
as provided in § 68-948 until such depository shall have given bond with
the same conditions as those required for bonds given by State deposi-
tories who elect to give bond to protect money deposited with them by the
State Treasurer pursuant to the provisions of §§ 2-179 to * 2-182 or
until such depository shall have pledged and deposited in the manner and
to the extent hereinafter provided and for the protection of the money
deposited with it pursuant to the provisions of this section * securities of
the character authorized as legal investments under the laws of this Com-
monwealth for public sinking funds.

Provided, however, that:

(a) All securities offered by a depository shall have the approval of
the county finance board; and

(b) Any such depository, in lieu of complying with the preceding

art of this section, may, by its board of directors, adopt a resolution
Pefore such public funds are deposited therein to the effect that, in the
event of the insolvency or failure of such depository, such public funds
deposited therein subsequent to the adoption of such resolution shall, in
the distribution of the assets of such depository, be paid in full before any
other depositors shall be paid deposits made in such depository subsequent
to the same date and the adoption of such resolution shall be deemed to
constitute a binding obligation on the part of such depository; but at no
time shall such public funds be on deposit in any such depository availing
itself of the provisions of this proviso to an amount in excess of sixty per
centum of the capital and surplus of such depository unless and until such
excess be secured as provided by the provisions of this section which
precede this proviso.
2. § 2-183 of the Code of Virginia is hereby repealed.