Chap. 100.—An ACT to amend and re-enact sections 2158 and 2162 of the Cod
of Virginia, as heretofore amended, relating to public moneys and State de.
positories. [S B 174

Approved March 10, 1934

1. Be it enacted by the General Assembly of Virginia, That section:
twenty-one hundred and fifty-eight and twenty-one hundred and sixty:
two of the Code of Virginia, as heretofore amended, be amended anc
re-enacted so as to read as follows:

Section 2158. No money shall be deposited in either of said bank:
until it shall have secured some person other than the bank itself in it!
behalf to enter into a bond, approved and accepted by the finance board
with condition faithfully to account for and pay over when and as re
quired whatever amount may, at the time such bond is given, be ot
deposit in said bank to the credit of the Commonwealth, and such othe
sums as may thereafter be deposited in said bank on behalf of th
Commonwealth, and for the faithiul discharge by said bank of a
duties and obligatjons pertaining to it as such depository, and with the
further condition to pay the State interest at the rate of not less thar
three-fourths of one per cent per annum on active State deposits, at
the rate of not less than one and one-fourth per cent per annum on semi-
active State deposits, and at the rate of not less than one and three-
fourths per cent per annum on inactive State deposits, on daily balances
payable monthly. The State Finance Board may, however, in its dis-
cretion, from time to time, contract for higher rates to be paid upon
State deposits.

For the purpose of this section, an active State deposit shall be one
in which checks and cash, or either, are deposited to the credit of the
Commonwealth and on which checks of the Commonwealth are drawn:
a semi-active State deposit is one in which checks and cash, or either,
are deposited to the credit of the Commonwealth and on which drafts
are drawn at frequent intervals; and an inactive State deposit is one
in which funds of the Commonwealth are deposited by draft and with-
drawn by draft only.

Every such bank shall give as security on its bond, some guaranty
or surety company doing business in this State. The penalty of any
such bond, or the amount of the securities which may be deposited in
lieu thereof, as hereinafter provided for, shall be at least five thousand
dollars and must at all times be equal in amount to the amount of
money of the Commonwealth that is on deposit in any such designated
State depository, less such amount as shall be insured, by evidence sat-
isfactory to the State Treasurer, by the Federal Deposit Insurance Cor-
poration, a corporation created pursuant to an act of the Congress of the
United States, approved June sixteenth, nineteen hundred and thirty-
three, and known as the banking act of nineteen hundred and thirty-
three.

Any such bank, however, may deposit with the Treasurer of the
Commonwealth of Virginia, in lieu of such bond, registered or coupon
bonds of the State of Virginia or State highway certificates, registered
or coupon bonds of any municipality, county or sub-division thereof, of
the Commonwealth of Virginia, issued in compliance with the 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, or
bonds of the Home Owners’ Loan Corporation, a corporation created
pursuant to an act of the Congress of the United States, approved
June thirteenth, nineteen hundred and thirty-three, said bonds and notes
to be taken at the market value on the date of deposit, to be held upon
the same condition and trust for the protection and indemnity of, and
for the payment of interest to, the State, stipulated above in relation to
the bond to be given hereunder, provided, however, bonds of the said
Home Owners’ Loan Corporation shall be taken at ninety per centum
of the market value thereof on date of deposit, and shall not exceed
fifty per cent of the security required of any State depository; 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 pay-

ing any of the liabilities provided for in this title. The Treasurer shall,
in the month of December in each year, examine all securities so de-
posited with him or held as hereinafter provided for the purpose of as-
certaining whether any of them have depreciated or been reduced in
value, and forthwith require any such bank to make good any deprecia-
tion or reduction in value of said securities. The State shall be respon-
sible 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 may, in his discretion and only when he deems it
an emergency instead of requiring the actual delivery to him of the se-
curities above enumerated, take from any such bank an order duly
executed by and under the seal of the said bank, directed to any bank
either in the State of Virginia or without the State, directing and au-
thorizing the latter bank to segregate such securities as shall be desig-
nated in the said order and belonging to the former bank, from other
securities which the latter bank may hold, and to hold such securities
until released by the Treasurer of Virginia, or his duly authorized
deputy, upon the same condition and trust for the protection and in-
demnity of the State stipulated above in relation to the bond to be
given under this section; provided the Treasurer shall in each case first
satisfy himself that such securities belonging to the former bank are
held by the said latter bank, and shall secure from the said bank holding
such securities an agreement to so hold such designated securities sub-
ject to and upon the conditions herein set forth. |

The Treasurer is further authorized in his discretion and only in
cases of emergencies to accept bonds or notes of railroads or industrial
corporations which are legal investment 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.

Section 2162. As soon as the State depositories, or any of them, have
given the bonds required of them under the preceding sections, and
such bonds have been approved and accepted by the finance board, all
public moneys on deposit with other depositories shall be transferred to
such of the State depositories as have given bonds (which have been
approved and accepted as aforesaid), or to any or either of them. Al
transfers of public moneys, under the provisions of this or the preceding
sections shall be made upon draft drawn by the Treasurer or his duly
authorized deputies, and so drawn that the money shall not go intc
the hands of the Treasurer ; but the transfer shall be made in the mode
selected by the depository receiving the money and at the risk and ex-
pense of said depository.

2. This act shall be in force on and after July first, nineteen hundred
and thirty-four. —