Chap. 281.—An ACT to provide that bonds and other obligations issued by a hous-
ing authority pursuant to the housing authorities law and any amendment thereto
of the Commonwealth of Virginia or issued by any other public housing author-
ity or agency in the United States, when secured by a pledge of annual contribu-
tions to be paid by the United States Government, shall be security for all public
deposits and negotiable and legal investments for the Commonwealth and public
officers, municipal corporations, political subdivisions, and public bodies, all
banks, bankers, trust companies, savings banks and institutions, building and
loan associations, savings and loan associations, investment companies and other
persons carrying on a banking business, all insurance companies, insurance asso-
ciations and other persons carrying on an insurance business. [S B 151]

Approved March 20, 1942

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. Housing Bonds to be Legal Investments, Legal Security
and Negotiable-——The Commonwealth and all public officers, municipal
corporations, political subdivisions (other than housing authorities), and
public bodies, all banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan associations,
investment companies and other persons carrying on a banking business,
all insurance companies, except domestic life insurance companies may
legally invest any sinking funds, moneys or other funds belonging to
them or within their control in any bonds or other obligations issued by a
hgusing authority pursuant to the housing authorities law (Chapter 310,
Acts of the General Assembly of 1938) and any amendments thereto, or
issued by any public housing authority or agency in the United States,
when such bonds or other obligations are secured by a pledge of annual
contributions to be paid by the United States Government or any agency
thereof, and such bonds and other obligations shall be authorized security
for all public deposits and shall be fully negotiable in this Commonwealth;
it being the purpose of this act to authorize any persons, firms, corpora-
tions, associations, political subdivisions, bodies and officers, public or
srivate, to use any funds owned or controlled by them, including (but
10t limited to) sinking, insurance, investment, retirement, compensation,
yension funds, and funds held on deposit, for the purchase of any such
yonds or other obligations and that any such bonds or other obligations
shall be authorized security for all public deposits and shall be fully
negotiable in this Commonwealth; provided, however, that nothing con-
ained in this act with regard to legal investments shall be construed as
relieving any person, firm or corporation from any duty of exercising
reasonable care in selecting securities.

Section 2. Severability—Notwithstanding any other evidence of
legislative intent, it is hereby declared to be the controlling legislative
intent that if any provision of this act, or the application thereof to any
person or circumstances, is held invalid, the remainder of the act and the
application of such provision to persons or circumstances other than those
as to which it is held invalid ; shall not be affected thereby.

Section 3. Act Controlling—Insofar as the provisions of this act
are inconsistent with the provisions of any other law, the provisions of
this act shall be controlling.