Chap. 570.--An ACT to amend section 753 of the Code of Virginia, as amended, ir
relation to State depositories.

Approved April 2, 1902.

1. Be it enacted by the general assembly of Virginia, That section
seven hundred and fifty-three of the Code of Virginia, as amended and
re-enacted by an act entitled an act to amend and re-enact section seven
hundred and fifty-three of the Code of Virginia, relating to State deposi-
tories, be amended and re-enacted so as to read as follows:

§ 753. State depositories; their bonds; when moneys to be transferred :
when governor may designate temporary depositories; 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 depositories—to-wit: The Planters National Bank
of Richmond, Virginia, the First National Bank of Richmond, the Na-
tional Bank of Virginia, the Merchants National Bank, the American
National Bank of Richmond, Virginia, and the State Bank of Virginia,
Radford Trust Company of Radford, Virginia, the National Exchange
Bank of Roanoke, 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 person other than the bank itself in 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 Com-
monwealth, 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 depository.

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 gov-
ernor refuses to approve and accept the same, or if, at any time after
such bond has been given by the depository and accepted by the governor,
the depository 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 here-
inafter required, or to discharge any other duty or meet any other obli-
gation pertaining to it as such depository, in any such case all moneys on
deposit in the said bank to the credit of the Commonwealth shall be im-
mediately transferred from the said bank to such of the other banks be-
fore designated 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 depositories fail or refuse to
give the bonds hereinafter 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 depository 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 provisions be made, moneys paid
into or out of the public treasury may, if the governor deem it necessary,
and so instruct the treasurer, be received 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 temporary depositories such banks or bankers as will con-
sent to pay interest on the public deposits as hereinafter required, and
are competent to continue the system of receipts and disbursements re-
quired by law; but he shall require of any such temporary depository,
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 prescribed for the bond to be given by one of the banks named as
State depositories as aforesaid.

The governor, whenever, in his opinion, the bond of any depository is
insufficient, may require of such depository 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 depository fail or re-
fuse to give such new bond, or an additional bond, when required, the
public money on deposit with such depository shall be transferred to one
or more of the State depositories, or if there be none such at the time au-
thorized to receive such deposits, to such depository 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 inquiry through such agencies as he
may employ as to the solvency of the obligors and the sufficiency of the
bond in all respects. The Commonwealth 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 pro-
ceedings shall be conducted by the treasurer instead of the auditor.

2. This act shall be n force from its passage.