Chap. 256.—An ACT to amend and re-enact section 753 of the code of Virginia
relating to state depositaries.

Approved February 3, 1900.

1. Be it enacted by the general assembly of Virginia, That section
seven hundred and fifty-three of the code of Virginia be amended and
re-enacted so as to read as follows: |

& 753. State depositaries; their bonds; when moneys to be trans-
ferred; when governor may designate temporary depositaries; when new
bonds. State's remedy on bonds. —Moneys to be hereafter paid into the
public treasury of the state shall be deposited in the following banks,
hereby designated as state depositaries, to wit: the planters national
bank of Richmond, Virginia, the first national bank of Richmond, the
national bank of Virginia, the merchants national bank and the Ameri-
can national bank of Richmond, Virginia, or in any or either of them.
But no such money shall be deposited in either of the said banks until
it shall have procured some persons other than the bank itself, im its
behalf, to enter into a bond, approved and accepted by the governor, in
the penalty of five hundred thousand dollars, with condition faithfully
to account for and pay over, when and as required, whatever amount
may, at the time such bond is given, be on deposit in said bank to the
credit of the commonw ealth, and such other sums as may thereafter be
deposited in said bank on behalf of the commonwealth, and with further
condition for the faithful discharge by the said bank of all the duties
and obligations pertaining to it as such depositary. If either of the said
banks fail or refuse to procure such bond, to be given within ten days
after being notified by the governor that the bond is required, or if,
when the bond has been procured to be given, the governor refuses to
approve and accept the same, or if, at any time after such bond has been
given by the depositary and accepted by the governor, the depositary
fail or refuse to pay the checks of the treasurer, upon the warrant of
the proper auditor, or to pay the interest on deposits as hereinafter re-
quired, or to discharge any other duty or meet any other obligation per-
taining to it as such “depositary ; in any such case all moneys on deposit
in the said bank to the credit of the conmonwealth shall be immediately
transferred from the said bank to such of the other banks before desig-

nated as have furnished the bond aforesaid and not broken its condition,
or to any, or either of them, and no further deposit of the public money
shall be made in such bank. If each and all of the said designated de-
positaries fail or refuse to give the bonds hereinbefore required, or if,
where such bonds have been given and accepted, there has been a breach
of the condition of each and all of them, or if, at any time, the treasurer
shall have reason to believe that none of them is a safe depositary of the
public money in any such case, the treasurer shall certify that fact to
the governor in a written communication to him, and thereafter shall
keep the public money in such place or places as the governor by writing
shall direct, until further provisions be made by law. Until such pro-
visions be made, moneys paid into or out of the public treasury, mav,
if the governor deem it neces sary and so instruct the treasurer, be re-
ceived and paid on the warrant of the proper auditor, requiring the
treasurer to receive or pay the same, without any deposit made or check
drawn, as prescribed by the preceding section. It shall, however, be the
duty of the governor, in such cases, if practicable, to designate as tem-
porary depositaries such banks or bankers as will consent to pay interest
on the public deposits as hereinafter required, and are competent to
continue the system of receipts and disbursements required by law; but
he shall require of any such temporary depositary and any other that
may be designated by him under the provisions of this section, bond
with good security, in a penalty sufficient to cover the amount of the
public money to be deposited, with the same condition as that pre-
scribed for the bond to be given by one of the banks named as state de-
positaries as aforesaid. The governor, whenever in his opinion the bond
of any depositary is insufficient, may require of such depositary a new
bond, or an additional bond, with sufficient surety, to be given within a
reasonable time, in such penalty as the governor shall prescribe; and if
the depositary fail or refuse to give such new bond, or an additional
bond, when required, the public money on deposit with such depositary
shall be transferred to one or more of the state depositaries, or, if there
be none such at the time authorized to receive such deposits, to such
depositary as he may designate. Before the governor shall approve and
accept any bond tendered under the provisions of this section, he shall
take the opinion of the attorney-general thereon, and institute an in-
quiry, through such agencies as he may employ, as to the solvency of
the obligors and the sufficiency of the bond in all respects. The com-
monwealth shall have the like remedy upon any bond given under this
section in all respects as provided by law in respect to the bond of a
county or city treasurer failing to pay the amount of public taxes with
which he is chargeable, except that the proceedings shall be conducted
by the treasurer instead of the auditor.
2. This act shall be in force from its passage.