Chap. 117.—An ACT to amend and re-enact Sections 2 and 8 of Chapter 375 of the
Acts of Assembly of 1942, approved April 1, 1942, to extend the time in which
the development of projects may be initiated thereunder. [H 124]

Approved March 2, 1944

Be it enacted by the General Assembly of Virginia:

1. That sections two and eight of chapter three hundred seventy-
five of the Acts of Assembly of nineteen hundred forty-two, approved
April first, nineteen hundred forty-two, be amended and re-enacted, as
follows:

Section 2. Defense Housing by Housing Authorities—Any hous-
ing authority may undertake the development or administration, or both,
of projects to assure the availability of safe and sanitary dwellings for
persons engaged in national-defense activities whom the housing author-
ity determines would not otherwise be able ta secure safe and sanitary
dwellings within the vicinity thereof, but no housing authority shall
initiate the development of any such project pursuant to this act after
December thirty-first, nineteen hundred and forty-six.

In the ownership, development or administration of such projects,
a housing authority shall have all the rights, powers, privileges and 1m-
munities that such authority has under any provision of law relating to
the ownership, development or administration of slum clearance and
housing projects for persons of low income, in the same manner as
though all the provisions of law applicable to slum clearance and housing
projects for persons of low income were applicable to projects developed
or administered to assure the availability of safe and sanitary dwellings
for persons engaged in national-defense activities as provided in this Act :
provided, that during the period (herein called the “National-Defense
Period”) that a housing authority finds (which finding shall be conclu-
sive in any suit, action or proceeding) that within its area of operation,
or any part thereof, there is an acute shortage of safe and sanitary dwell-
ings which impedes the national-defense program in this Commonwealth
and that the necessary safe and sanitary dwellings would not otherwise be
provided when needed for persons engaged in national-defense activities.
any project developed or administered by such housing authority (or by
any housing authority cooperating with it) in such area, with the finan-
cial aid of the Federal Government (or as agent for the Federal Govern-
ment as hereinafter provided), shall not be subject to the limitations pro-
vided in section ten and the second sentence of section nine of the Hous-
ing Authorities Law; and provided further, that, during the National-
Defense Period, a housing authority may make payments in such amounts
as it finds necessary or desirable for any services, facilities, works, privi-
leges or improvements furnished for or in connection with any such
project. In the development or the administration of projects hereunder
or in otherwise carrying out the purposes hereof, any housing authority
of any city, town or county may exercise its powers within the territorial
boundaries of such city, town or county, and in any area within ten
miles from said boundaries, with the approval of the governing body of
the area affected thereby, exclusive of any area within the territorial
boundaries of any other city, town or county in which there is a housing
authority. After the National-Defense Period, any such projects owned
and administered by a housing authority shall be administered for the
purposes and in accordance with the provisions of the Housing Author-
ities Law, except as otherwise provided in the preceding sentence of this
section two. This Act shall consitute an independent authorization for
a housing authority to undertake the development or administration of
projects to assure the availability of safe and sanitary dwellings for per-
sons engaged in national-defense activities as provided in this Act and for
a housing authority to cooperate with, or act as agent for, the Federal
Government in the development or administration of similar projects by
the Federal Government.

Section 8. Definitions—(a) ‘Persons engaged in national-defense
activities’, as used in this Act, shall include (without limiting the gen-
eralitvy thereof) enlisted men in the military and naval services of the
United States and emplovees of the War and Navy Departments as-
signed to duty at military or naval reservations, posts or bases ; and work-
ers engaged or to be engaged in industries connected with and essential
to the national-defense program; and shall include the families of the
aforesaid persons who are living with them.

(b) “Persons of low income”, as used in this Act, shall mean per-
sons or families who lack the amount of income which is necessary (as
determined by the housing authority undertaking the housing project )
to enable them, without financial assistance, to live in decent, safe ancl
sanitary dwellings, without overcrowding.

(c) “Development”, as used in this Act, shall mean anv and all
undertakings necessary for the planning, land acquisition, demolition,
financing, construction or equipment in connection with the project (in-
cluding the negotiation or award of contracts therefor), and shall include
the acquisition of any project (in whole or in part) from the Federal
Government.

(d) “Administration”, as used in this Act, shall mean any and all
undertakings necessary for management, operation or maintenance, in
connection with any project, and shall include the leasing of any project
(in whole or in part) from the Federal Government.

(e) “Federal Government”, as used in this Act, shall mean the
United States of America or any agency or instrumentality, corporate or
otherwise, of the United States of America.

(f) The development of a project shall be deemed to be “initiated”,
within the meaning of this Act, if a housing authority has issued any
bonds, notes or other obligations with respect to financing the develop-
ment of such project of the authority, or has contracted with the Federal
Government with respect to the exercise of powers hereunder in the de-
velopment of such project of the Federal Government for which an alloca-
tion of funds has been made prior to December thirty-first, nineteen
hundred and forty-six.

(g) “Housing Authority”, as used in this Act, shall mean any hous-
ing authority established or hereafter established pursuant to the Hous-
ing Authorities Law.

(h) “Housing Authorities Law’, as used in this Act, shall mean
Chapter three hundred and ten, Acts of the General Assembly of nine-
teen hundred and thirty-eight, and any amendments thereto.

A

Chap. 118—An ACT to amend and re-enact Section 4260 of the Code of Virginia,
as amended, relating to death benefit and emergency funds of certain life in-
surance and casualty companies. {H 177]

Approved March 2, 1944

Be it enacted by the General Assembly of Virginia:

1. That section forty-two hundred sixty of the Code of Virginia, as
amended, be amended and re-enacted, as follows:

Section 4260. Death benefit or emergency fund.—(a) In addition
to provision for liability incurred on account of claims reported but not
settled, claims incurred but not reported, and premiums, dues, or assess-
ments collected in advance, every such corporation, company, society or
association shall accumulate and maintain a reserve or emergency fund,
which in the preparation of financial statements shall be considered a
liability of such corporation of at least ten thousand dollars provided that
any such corporation which shall not be possessed of a fund or reserve
of this amount on December thirty-first, nineteen hundred forty-three
shall set aside out of its net receipts from premiums, dues or assessments
from policyholders or members for the twelve months ended December
thirty-first, nineteen hundred forty-four, not less than five per centum
of such receipts, and if any such corporation, company, society or associa-
tion be not then possessed of a fund or reserve of ten thousand dollars,
it shall set aside out of its net receipts as aforesaid for the twelve months
next ensuing, the further sum of not less than five per centum of its re-
ceipts, or such amount as is necessary to cause the total amount of the
reserve to equal ten thousand dollars, whichever amount is the greater,
but the corporation shall not be required to increase the reserve to more
than ten thousand dollars, or ten per centum of the receipts, whichever
amount 1s greater.

(b) In addition to provision for liability incurred on account of
claims reported but not settled, claims incurred but not reported, and
premiums, dues, or assessments collected in advance, every such corpora-
tion, company, society or association which 1s possessed of a reserve or
emergency fund which, in the preparation of financial statements, is con-
sidered a liability of the corporation, set aside under the terms of the
law in effect prior to the enactment of this amendment, which fund ex-
ceeded ten thousand dollars on December thirty-first, nineteen hundred
forty-three, shall set aside out of its net receipts from premiums, dues.
or assessments from policyholders or members for the twelve months
ended December thirty-first, nineteen hundred forty-four, such amount
as is necessary to cause the total amount of the reserve to equal ten per
centum of the receipts, or in lieu thereof, five per centum of the receipts.
whichever amount is the lesser.

(c) Every such corporation shall for each calendar year thereafter
add to such fund or reserve not less than five per centum of its net re-
ceipts from premiums, dues, or assessments from policies of life insur-
ance and not less than two and one-half per centum of its net receipts
from premiums, dues, or assessments, from policies other than life insur-
ance premiums on which are payable monthly or more frequently than
monthly, and ten per centum of similar receipts from similar policies, the
premiums on which are payable less frequently than monthly, until the
total reserve fund so accumulated shall equal fifteen per centum of the
total benefits provided in the outstanding policies or certificates of life in-
surance and fifteen per centum of the net receipts from premiums, dues.
or assessments from policies other than life insurance, premiums on
which are pavable monthly or more frequently than monthly, and fifty
per centum of similar receipts from similar policies, the premiums on
which are payable less frequently than monthly, for the calendar vear.
provided that when such corporation has issued policies of life insurance
on a legal reserve basis the net receipts from such policies shall not be
considered in the calculation of the reserve or fund, but the company
shall be required to maintain only the reserve provided for in the policy
contracts.

(1) When the reserve or emergency fund accumulated in accord-
ance with the provisions contained in paragraphs (a). (b) and (c) equals
the maximum amounts, provided in section (c), it shall be maintained at
not less than such maximum amounts: provided that no such corpora-
tion, company, society, or association shall be required, in any one year,
to set aside more than five per centum of its net receipts from premiums,
dues or assessments, from policies of life insurance, other than policies or
certificates issued on a legal reserve basis, and two and one-half per
centum of its net receipts from premiums, dues or assessments, from
policies other than life insurance, the premiums on which are payable
monthly or more frequently than monthly, and ten per centum of similar
receipts from similar policies, the premiums on which are payable less
frequently than monthly, except as provided in paragraph (a).

(e) Paragraphs (a), (b), (c) and (d) of this section shall not be
construed to require any such corporation to accumulate or maintain
any reserve or fund as to any pure assessment policies on which the as-
sessments are collected after the death of the named insured.