Chap. 93.—An ACT to amend and re-enact section 2158 of the Code of Vir-
ginia, as amended, in relation to State depositories. [S B 122]

Approved March 5, 1928

1. Be it enacted by the general assembly of Virginia, That
section twenty-one hundred and fifty-eight of the Code of Virginia,
as amended, be further amended and re-enacted so as to read as
follows:

Section 2158. No money shall be deposited in either of said
banks until it shall have secured some person other than the bank
itself in its behalf to enter into a bond, approved and accepted by the
hnance board, for a sum in the penalty of at least five thousand dol-
lars, which sum, however, shall at all times be equal to the amount
of money of the Commonwealth that is on deposit in any such desig-
nated State depository, 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 Commonwealth, and such other sums as may thereafter be
deposited in said bank on behalf of the Commonwealth, and with
further condition to pay the State interest at the rate of not less
than two and one-half per centum per annum on daily balances,
and for the faithful discharge by said bank of all the duties and
obligations pertaining to it as such depository; but every such
bank shall give as surety on its bond, some guaranty or security
company doing business in this State. Any such bank, however,
may deposit with the treasurer of the State, in lieu of such bond,
registered or coupon bonds of the State of Virginia or State high-
way certificates, registered or coupon bonds of any municipality,
county or subdivision thereof, of the Commonwealth of Virginia,
issued in compliance with statutes authorizing same, or registered
or coupon bonds of the United States, or interest bearing United
States treasury notes registered in the case of registered bonds in
the name of the bank making such deposit, said bonds or notes to
be taken at the market value on date of deposit, to be held upon
the same condition and trust for the protection and indemnity of
the State stipulated above in relation to the bond to be given here-
under; and shall at the same time deliver to the treasurer a power
of attorney authorizing him to transfer said bonds or any part
thereof, for the purpose of paying any of the liabilities provided
for in this title. The treasurer shall, in the month of December in
each year examine all securities so deposited with him for the
purpose of ascertaining whether any of them have depreciated or
been reduced in value, and forthwith require any such bank to
make good any depreciation or reduction in value of said securities.
The State shall be responsible for the safe-keeping of all bonds
deposited with the treasurer of the State, and if said bonds or any
part of them shall be lost, destroyed, or misappropriated the State
shall make good such loss to the bank making the deposit.

The treasurer is further authorized in his discretion and only in
cases of emergencies to accept bonds or notes of railroads or in-
dustrial corporations which are legal investments for State and
national banks and which have not defaulted on interest payments
within the past five years, but in no case shall the bonds or notes
of railroads or industrial corporations, herein mentioned, be held,
at any one time, for more than sixty consecutive days.