CHAPTER 93

An Act to amend the Code of Virginia by adding thereto section num-
bered 58-948.8, and to amend and reenact § 58-945 of the Code of
Virginia; the new section authorizing the governing bodies of counties
to provide that certain county-owned securities may be held by
custodians, providing who may be such custodians, and prescribing
certain conditions for the sale and purchase of securities by such cus-
todians; and the amended section relating to the deposit of securities
pledged by depositories and custodians of counties. ss 186

[S 1382]

Approved February 25, 1960

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto section
numbered 58-943.3, and that § 58-945 of the Code of Virginia be amended
and reenacted, as follows:

§ 58-948.38. Notwithstanding any other provision of law to the con-
trary, the governing body of any county may by resolution provide that
any or all securities owned by the several funds of such county may be
held either by the treasurer of such county as custodian thereof or by the
trust department of a bank or trust company designated by the governing
body and authorized to conduct a trust business in this State, as cus-
todian thereof in safe keeping for the account of the treasurer.

Every such custodian is authorized, when so directed by the governing
body of the county, to sell any securities so held and, with the proceeds
therefrom, or with other funds of the county coming into his or its hands
pursuant to the provisions of this section, to purchase other securities; pro-
vided, however, that the terms of every such purchase and sale shall be as
directed by the governing body of the county.

This section shall not be construed to relieve any such governing body
from any requirement of law relating to the deposit and investment of
county funds, except as herein provided.

All of the requirements and provisions of this article relating to the
bonding of depositories and security to be given upon such bond shall
apply mutatis mutandis to each bank and trust company which is a cus-
todian under the provisions of this section.

§ 58-945. All securities pledged by any depository or custodian to
protect money or securities deposited with it under the provisions of this
article shall be deposited in escrow with some bank or trust company in
this Commonwealth, other than the depository or custodian, which shall be
acceptable to and approved by the depository or custodian and the county
finance board and shall be accompanied by powers of attorney authorizing
such bank or trust company, in event of any default by the depository
or custodian, to deliver the securities to the county finance board and em-
powering such board to sell, transfer and deliver all or any part of such
securities in such manner as it may elect for the satisfaction of any claim
that may arise from such default.