CHAPTER 92

An Act to amend and reenact §§ 15-666.48 and 15-666.52 of the Code of
Virginia, relating to temporary investment of proceeds of bond issues
and to the deposit of or investment of certain funds. 'S 1817

Approved February 25, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 15-666.48 and 15-666.52 of the Code of Virginia be amended
and reenacted as follows:

§ 15-666.48. Pending the application of the proceeds of any bonds
authorized under the provisions of this chapter 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 unit au-
thorizing 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 redemption by the holder thereof at the option
of such holder, not later than twenty-four 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 or chief financial officer of the unit as custodian
thereof or by the trust department of a bank or trust company, designated
by the governing body of the county and authorized to conduct a trust
business in this State, as custodian thereof in safe keeping for the account
of the treasurer, and shall be sold by * such treasurer or financial officer
upon resolution of the governing body of the unit directing such sale, at
the best price obtainable, 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 unit shall have been
authorized.

§ 15-666.52. All proceeds received from the sale of bonds of any unit
issued under the provisions of this chapter and all moneys collected for the
payment of bonds issued under the provisions of this chapter, whether
from the proceeds of taxes levied for such purpose or from revenues or
special assessments pledged for such purpose, shall be deposited in escrow
with some solvent bank or trust company in this Commonwealth which
shall be acceptable to the governing body or shall be deposited in a solvent
bank or banks in conformity with their charters in the case of munic-
ipalities and general law in the case of counties, 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 the Commonwealth, or by the deposit as collateral se-
curity of direct obligations of, or obligations the principal of and the
interest on which are unconditionally guaranteed by, the United States
Government, or other marketable securities eligible as security for the
deposit of trust funds under regulations of the Board of Governors of the
Federal Reserve System, having a market value (exclusive of accrued
interest) not less than the amount of such deposit. It shall be lawful for
any bank or trust company incorporated under the laws of the Common-
wealth which may act as a depository of such moneys to furnish such
surety bonds or to pledge such securities as may be required by the govern-
ing body. In lieu of retaining such moneys on deposit, the governing body
may invest all or part of such moneys 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 redemption by the holder
thereof at the option of such holder, not later than twenty-four months
after the date of such investment.