Chap. 400.—An ACT to amend and re-enact section 350 of the Tax Code of Vir-
ginia, relating to the receipt and disbursement of money paid to county treas-
urers for the accounts of the Commonwealth and the counties. [H B 133]

Approved March 30, 1932

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

Section 350. All money payable to and received by a county treas-
urer pursuant to law shall be deposited, paid out, and disbursed by him
in the manner hereinafter provided.
(a) All money received by a county treasurer for the account of
either the Commonwealth or the treasurer’s county, except such
amount thereof as shall be necessary for the payment in cash of orders
or warrants lawfully drawn upon the treasurer and matured lawful
bonds, notes, or obligations of the treasurer’s county, for the payment
of which funds are available, shall be deposited by the treasurer as
promptly as practical after its receipt in such bank or banks as 1s, or
are, authorized by this section to act as depository or depositories there-
for. All deposits made pursuant to this provision shall be made in the
name of the treasurer’s county. ,

(b) For the purposes hereinafter indicated, there is hereby created
for each county of the Commonwealth a county finance board, which
shall consist of the chairman of the board of supervisors, the treasurer,
and a citizen of the county of proven integrity and business ability.
The chairman of the board of supervisors and the county treasurer
shall be ex-officio members of the count oa the citizen
member thereof shall be appointed by the circuit court of the county
or by the judge thereof in vacation. The first citizen member of the
county finance board shall be appointed for a term to expire December
thirty-first nineteen hundred and thirty-three. Thereafter the term
of the appointment of such member shall be four years, but the circuit
court of the county, or the judge thereof in vacation, in his discretion,
may remove for cause any such member and appoint some other quali-
fied citizen of the county in his stead for the unexpired portion of
his term.

The chairman of the board of supervisors shall be the chairman of
the county finance board and the clerk of the board of supervisors shall
be ex-officio clerk thereof. Said board shall meet at such times and at
such places as the chairman or a majority of the members of said board
may appoint, and the clerk shall record the activities and proceedings
of said board in a suitable record book which shall be provided for the
purpose by the board of supervisors.

(c) The depository or depositories for the money received by a
county treasurer shall be selected by the county treasurer and approved
by the county finance board, and said board shall have and hereby is
granted authority to withdraw its approval of any depository if in its
judgment the protection and safety of the money held by such deposi-
tory requires such action; and if and when such action is taken with
respect to any depository the treasurer shall forthwith withdraw from
such depository all money on deposit therewith and deposit the same
with an approved depository.

(d) No money received by a county treasurer shall be deposited
with any depository of the treasurer’s county selected and approved as
provided in subsection (c) hereof until such depository shall have given
bond with the same conditions as those required for bonds given by
State depositories who elect to give bond to protect money deposited
with them by the State treasurer pursuant to the provisions of section
twenty-one hundred and fifty-eight of the Code of Virginia, as amend-
ed, or until such depository shall have pledged and deposited in the
manner and to the extent hereinafter provided and tor the protectio™
of the money deposited with it pursuant to the provisions of this sec-
tion; (1) securities of the character required to protect deposits made
by the State treasurer pursuant to the provisions of section twenty-one
hundred and fifty-eight of the Code of Virginia, as amended ; (2) secu-
rities of the character described in section fifty-four hundred and
thirty-one of the Code of Virginia, as amended, except those described
in subsection seventh thereof, and/or (3) legally issued short-term
notes or other obligations of any county or. municipality of this Com-
monwealth; provided, however, that all securities offered by a depost-
tory shall have the approval of the county finance board; and provided,
further, that any such depository, in lieu of complying with the preced-
ing part of this subsection (d), may, by its boards of directors, adopt
a resolution before such public funds are deposited therein, to the effect
that, in the event of the insolvency or failure of such depository, such
public funds hereafter deposited therein shall, in the distribution of
the assets of such depository, be paid in full before any other deposi-
tors shall be paid deposits hereafter made in such depository, and the
adoption of such resolution shall be deemed to constitute a binding
obligation on the part of such depository; but at no time shall such
public funds be on deposit in any such depository availing itself of the
provisions of this proviso to an amount in excess of sixty percentum
of the capital and surplus of such depository unless and until such
excess be secured and provided by the provisions of this subsection (d)
which precede this proviso.

(e) All securities pledged by any depository to protect money
deposited with it under the provisions of this section shall be deposited
in escrow with some bank or trust company in this Commonwealth,
other than the depository, which shall be acceptable to and approved
by the depository and the county finance board and shall be accom-
panied by powers of attorney authorizing such bank or trust company,
in event of any default by the depository, to deliver said securities to
the county finance board and empowering 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.

(f{) The amount of bond given or the value of securities pledged
by any depository as aforesaid shall at no time be less than the amount
of money on deposit with the depository. For the purpose of this sub-
section the various classes of securities which may be pledged to secure
money deposited under the provisions of this section shall be valued
as follows: :

(1) Those securities described in section twenty-one hundred and
fifty-eight of the Code of Virginia and those described in subsections
first, second, third, and fourth, of section fifty-four hundred and thirty-
one of the Code of Virginia shall be valued at market value.

(2) Those securities described in subsections fifth, eighth, ninth,
and tenth of section fifty-four hundred and thirty-one of the Code of
Virginia shall be valued at eighty per cent of market value.

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(3) The short-term notes or other obligations of the counties and
municipalities of this Commonwealth described in subsection (d) here-
of shall be valued at eighty per cent of par, provided, however, that
when any county’s obligations of this character are pledged and de-
posited to secure money deposited by or on behalf of the same county,
such obligations may be valued at par.

(4) The securities described in subsection sixth of section fifty-
four hundred and thirty-one of the Code of Virginia shall be valued
at two-thirds of the face amount thereof; provided, however, that in
no case shall the allowable value of securities of the class referred to
in this subsection be greater than twenty-five per cent of the aggregate
value of all securities, including those referred to in this subsection,
pledged and deposited in such case.

(g) No treasurer or executive officer of any depository shall permit
the amount of money on deposit with any depository at any time
pursuant to the provisions of this section to exceed the amount of
bond given or the value, computed as hereinbefore provided, of the
securities pledged and deposited to secure such money.

(h) At the end of each month each county treasurer shall report
to the county finance board the amount of money on deposit with each
depository and the character and value of the security held to protect
the same.

(1) Each depository of each county shall, in the discretion of the
county finance board pay interest on money deposited under the provi-
sions of this section, the rate of such interest to be agreed upon be-
tween the treasurer and the depository and approved by the county
finance board.

(j) Money deposited under the provisions of this section shall be
disbursed only upon checks signed by the county treasurer and drawn
in payment of lawfully issued and properly drawn orders or warrants
and lawfully issued, properly drawn, and matured bonds, notes, or
other obligations of the county, for the payment of which funds are
available; provided, however, that this subsection shall not be con-
strued as preventing any county treasurer from transferring, by check,
money from one approved depository to another, or from settling with
the Commonwealth, without an order from the board of supervisors of
his county, for State revenues and/or other items collected and remit-
table by him to the treasurer of the Commonwealth, or from paying
to the treasurer of the Commonwealth, without an order from the
board of supervisors of his county, any amount or amounts pursuant
to provisions of law; provided, also, however, that any board of super-
visors desiring to do so may require the checks issued pursuant to the
provisions of this subsection to be countersigned and appoint such
person or persons as it may desire for the purpose; provided, further,
however, that this subsection shall not be-construed as imposing upon
any depository any obligation to determine whether any check issued
pursuant to the provisions of this subsection was issued for any pur-
pose or purposes other than those specified herein or as imposing any
liability upon any such depository for paying any check so issued.

(k) After this section becomes effective, no county treasurer shall
be held liable for any loss of public money, deposited as provided by
this section due to the default, failure, or insolvency of a depository ;
provided, however, the board of supervisors of any county at any
regular or special meeting thereof, may by resolution adopted by a
majority of their elected members suspend the operation of this act
for a period of not exceeding three months from the time this act
becomes a law.

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