Chap. 154.-—-An ACT to amend and re-enact Sections 5317 and 5325 of the Code
of Virginia, as amended, such sections relating to the appointment of guardians,
their powers and duties, and the investment of fiduciary funds. [H B 156]

Approved March 11, 1946

Be it enacted by the General Assembly of Virginia:

1. That sections fifty-three hundred seventeen and fifty-three hun-
dred twenty-five of the Code of Virginia, as amended, be amended and re-
enacted, as follows:

Section 5317. How appointment made.—If the minor is under the
age of fourteen years, the court or official thereof having authority for
appointment of guardians under the preceding section may nominate as
well as appoint his guardian; if he is above that age he may, in the pres-
ence of the court, or of such official, or in writing acknowledged before
any officer qualified to take acknowledgments, nominate his own guardian,
who, if approved by the court, or by such official, shall be appointed ac-
cordingly ; but if the guardian nominated by the minor be not appointed
or if the minor reside without the State, or if, after being summoned by
the court or by such official, he does not nominate a person deemed suit-
able and competent by the clerk or judge making the appointment, a
guardian may be nominated and appointed in the same manner as if the
minor were under the age of fourteen years. In no case shall any person
be appointed guardian unless the court or official thereunto authorized
and acting is satisfied that he is competent to perform the duties of his
office.

Section 5325. Time within which guardian or other fiduciary to in-
vest funds; reasonable diligence required.— Whenever a guardian or other
fiduciary charged with the investment of funds collects any principal he
shall have a reasonable time not exceeding four months to invest or loan
same, and shall not be charged with interest thereon until the expiration
of such time ; provided that such guardian or any other fiduciary shall only
be required to exercise reasonable diligence in lending or investing trust
funds, and if such guardian or other fiduciary is reasonably diligent in
lending or investing such funds he shall be accountable only for such
interest and profits as are earned. If any funds be loaned at a rate of
interest less than six per centum per annum without the previous consent
of the court having jurisdiction of said trust funds, except in the classes
ot securities bearing less than that rate of interest now or hereafter per-
mitted by law, the burden shall be on the guardian or other fiduciary
before his settlement is approved by the commissioner of accounts to
show to the satisfaction of the commissioner that after exercising reason-
able diligence he was unable to lend the funds at six per centum interest
on good security and that the rate of interest secured was reasonable and
proper under all of the circumstances and fair to the beneficiary or bene-
ficiaries of the funds.

This section shall not be construed as altering the provisions of any
will, deed or other instrument giving to the guardian or other fiduciary
discretion as to the rate of interest, character of security, nature of in-
vestment under.the trust, or time within which the trust funds are to be
loaned or invested.