Chap. 444.—An ACT to amend and re-enact Section 4214 of the Code of Virginia,
relating to the lien of policyholders on deposits of insurance companies with
the State Treasurer and the enforcement thereof. [S B 297]

Approved March 30, 1936

1. Be it enacted by the General Assembly of Virginia, That section
forty-two hundred and fourteen of the Code of Virginia be amended
and re-enacted so as to read as follows:

Section 4214. Policyholders to Have Lien on Deposits; Enforce-
ment thereof—The bonds required to be deposited by section forty-
two hundred and eleven shall be held as security for liabilities incurred
or to be incurred by the companies mentioned in such section, to this
State and the political subdivisions thereof, to the citizens and in-
habitants of this State, and to other persons, natural and artificial,
owning property in this State who may sustain a loss in consequence
of the failure of such company to meet its obligations incurred in this
State, to secure policyholders, ratably and without preference, and,
subordinate to the claims of said policyholders, to secure, ratably and
without preference, the general creditors of any such company, and
they shall have a lien thereon for the amounts due or to become due
to them, respectively, in consquence of any failure of such company to
discharge its liabilities to them, respectively, and shall be entitled to be
paid ratably out of the proceeds of said bonds, if such proceeds be not
sufficient to discharge all of such liabilities; and whenever any such
company, depositing bonds as aforesaid, shall have become insolvent or
bankrupt, or shall have made an assignment for the benefit of its
creditors, any person given a lien by this section may file a bill in the
circuit court of the city of Richmond for the benefit of himself and
all others given a lien by this section to subject said bonds to the pay-
ment of the liens thereon. The treasurer shall be a party to the suit,
and the fund shall be distributed by the court.