CHAPTER 528

AN ACT to amend and reenact § 2-181 of the Code of 1950 relat-
ing to deposits by banks with State Treasurer of certain
bonds in lieu of surety bonds so as to permit, in certain
circumstances, such deposits with the Federal Reserve Bank
of Richmond.

[ H 618 ]

Approved April 7, 1950

Be it enacted by the General Assembly of Virginia:
1. That § 2-181 of the Code of 1950 be amended and re-
enacted as follows:

§ 2-181. Deposit in lieu of surety bond.—Any such bank,
however, may deposit with the State Treasurer, or, with the
approval of the State Treasurer with the Federal Reserve Bank
of Richmond, to be held subject to the order of the State
Treasurer, in lieu of such bond, registered or coupon bonds of
the State of Virginia or State highway certificates, registered or
coupon bonds of any municipality, county or subdivision thereof
of the Commonwealth of Virginia, issued in compliance with the
statutes, authorizing the same, or registered or coupon bonds
of the United States, or interest-bearing United States Treasury
notes, registered in the case of registered bonds in the name of
the bank making such deposit, or bonds of the Home Owners’
Loan Corporation, and of any other corporation or agency
created pursuant to an act or acts of the Congress of the United
States, provided such bonds are guaranteed by the Federal Gov-
ernment as to both principal and interest and the evidence of
such guarantee as appears on the face of such bonds. All such
bonds and notes shall be taken at the market value on the date
of deposit, and shall be held upon the same condition and trust
for the protection and indemnity of, and for the payment of
interest to the State, stipulated above in relation to the bond
given under § 2-179. Such banks shall at the same time deliver
to the State Treasurer a power of attorney authorizing him to
transfer the bonds and notes deposited, or any part thereof, for
the purpose of paying any of the liabilities provided for in this
itle.

The State Treasurer shall, in the month of December of
each year, examine all securities so deposited with him or held
as hereinafter provided for the purpose of ascertaining whether
any of them have depreciated or been reduced in value, and
forthwith require any such bank to make good any depreciation
or reduction in value of the securities.