CHAPTER 162

An Act to amend the Code of Virginia by adding a section numbered
18-281.1, providing for the conversion of certain mutual fire insurance
companies to nonstock corporations, the procedure thereunder, and
the effect thereof.

[ H 382]

Approved March 5, 1954

Be it enacted by the General Assembly of Virginia: ;

1, That the Code of Virginia be amended by adding a section numbered
13-231.1 as follows:

§ 13-231.1. In the case of any corporation or association chartered
by special act of the General Assembly authorized and having the power
to insure on the mutual plan dwelling houses, barns, and other buildings,
with their contents, and horses, mules, and cattle, of persons holding
policies in such corporation or association, against loss by fire or lightning,
and further providing for capital stock to be divided into shares, such
corporation or association may, by an affirmative vote of the holders of
two-thirds of such shares of stock, amend such charter so as to be subject
to the provisions of Chapter 15, Title 38.1, so as to become a corporation
not organized for profit, in which no capital stock is required, or to be
issued, as though originally incorporated under the provisions of this
chapter, by following the requirements and provisions of Chapter 4 of
this Title. The certificate required by that chapter shall also set forth the
same information as is required by § 13-221, but need not be presented to
a judge for his endorsement, and upon its approval by the State Corpora-
tion Commission, as and in the manner provided by Chapter 4 of this title,
the corporation shall be considered and treated for all purposes as organ-
ized and existing under the provisions of this chapter, and the certificate
herein provided for, setting forth the information required by § 13-221,
shall thereupon become its charter, and it shall have all the rights, powers
and privileges, and be subject to the same provisions of law, as if incor-
porated under the provisions of this chapter.

Subject to the provisions of § 158 of the Constitution of Virginia,
any such corporation incorporated under the laws of this State prior to
the adoption of the present Constitution and acting under this section of
the Code shall, in addition, have all the rights, powers and privileges con-
tained in its original charter, or any amcndments thereof, except the
right to have or issue shares of stock and be operated for profit.

2. An emergency exists and this act is in force from its passage.
An Act to amend the Code of Virginia by adding thereto a section num-
bered 15-615.1, so as to authorize certain investments of the proceeds
of certain bond issues pending application of such proceeds to author-

ized purposes.
[H 527]

Approved March 5, 1954
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a section
numbered 15-615.1, as follows:

§ 15-615.1. Pending the application of the proceeds of any bonds
of any city or town, authorized under the provisions of this article, to the
purpose or purposes for which such bonds have been authorized, all or any
part of such proceeds may be invested, upon resolution of the governing
body of the city or town authorizing such bonds, in direct obligations of,
or obligations the principal of and the interest on which are uncondition-
ally guaranteed by the United States government which shall mature, or
which shall be subject to the redemption by the holder thereof at the
option of such holder, not later than eighteen months after the date of
such investment. Any obligation so purchased as investment of the pro-
ceeds of such bonds shall be deemed at all times to be a part of such
proceeds, and the interest accruing thereon and any profit realized from
such investment shall be credited to such proceeds. Any obligation so
purchased shall he held by the treasurer of the city or town as custodian
thereof and shall be sold by the city or town treasurer upon resolution of
the governing board of the city or town directing such sale, at the best
price obtainable, or presented for redemption, whenever it shall be neces-
sary, as determined by such resolution, so to do in order to provide
moneys to meet the purposes for which the bonds of the city or town shall
have been authorized.