CHAPTER 515

AN ACT to amend and reenact § 38-49 of the Code of 1950,
relating to payment of claims out of deposit by insurance
companies so as to provide for notice of hearing to the
insurance company.

[ H 463 ]

Approved April 7, 1950

Be it enacted by the General Assembly of Virginia:
1. That § 38-49 of the Code of 1950 be amended and reenacted
as follows:

§ 38-49. If any company which has deposited bonds under
§§ 38-39 or 38-41 fails to pay any of its liabilities after such
liabilities * have been ascertained by any agreement of the
parties, binding on * the company, or by judgment, order or
decree of a court of competent jurisdiction, against * the com-
pany, not appealed from, superseded or stayed, the State Treas-
urer shall, upon the application of the * person to whom the
debt or money is due, proceed, after giving notice as hereinafter
provided, to sell at auction such amount of bonds as, with any
interest in his hands, will pay the sums due and expenses of
sale, and out of the proceeds of sale pay such sums and expenses.

The State Treasurer shall give the company, or its agent
in this State, ten days’ notice, by mail or personally, of the time
and place of the * sale, and the sale shall be advertised daily for
ten days in some newspaper published in the City of Richmond.
The Company shall be required to make good forthwith any
deficit in the amount of its deposit caused by the sale. The State
Treasurer shall report to the Commission in writing the amount
and kind of bonds sold in accordance with the provisions of this
section, and the amount and kind of bonds deposited to make
good * ‘the deficit.

2. An emergency exists and this act is in force from passage.