CHAPTER 442

An Act to amend and reenact §§ 58-944 as amended, and 58-947 of the
Code of Virginia, relating to bond or pledge of securities required of
depositories of county funds and the amount thereof. CH 524]

Approved March 29, 1958

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-944 as amended, and 58-947 of the Code of Virginia, be
amended and reenacted as follows:

§ 58-944. No money received by a county treasurer shall be deposited
with any depository of the treasurer’s county selected and approved as
provided in § 58-943 until such depository shall have given bond with the
same conditions as those required for bonds given by State depositories who
elect to give bond to protect money deposited with them by the State Treas-
urer pursuant ‘to the provisions of §§ 2-179 to 2-182 or until such deposi-
tory shall have pledged and deposited in the manner and to the extent
hereinafter provided and for the protection of the money deposited with
it pursuant to the provisions of this section securities of the character
authorized as legal investments under the laws of this Commonwealth for
public sinking funds.

Provided, however, that:

(a) All securities offered by a depository shall have the approval of
the county finance board or of the county board of supervisors, if in such
county all functions of the finance board are vested in the board of super-
visors, which approval may, in the board’s discretion, be by general authori-
zation to the depository to substitute from time to time, (1) for any securi-
ties on deposit, securities that are obligations of or guaranteed by the
United States, or (2) for securities on deposit that are obligations of or
guaranteed by the State of Virginia or Virginia counties, cities, towns,
districts or other public bodies, securities that are either obligations of or
guaranteed by the United States or obligations of or guaranteed by the
State of Virginia or Virginia counties, cities, towns, districts or other
public bodies, provided that each security substituted shall comply with the
requirements of § 2-297 and, at the time of substitution, shall be of market
value at least equal to the market value of the security for which substi-
tuted. Market value may be determined as the mean between the bid and
offered quotations furnished by a recognized dealer in securities on the date
of the substitution. The Board may at any time revoke its general authori-
zation and require approval of substitution in each case; and .

(b) Any such depository, in lieu of complying with the preceding part
of this section, may, by its board of directors, adopt a resolution before
such public funds are deposited therein to the effect that, in the event of
the insolvency or failure of such depository, such public funds deposited
therein subsequent to the adoption of such resolution shall, in the distribu-
tion of the assets of such depository, be paid in full before any other deposi-
tors shall be paid deposits made in such depository subsequent to the same
date and the adoption of such resolution shall be deemed to constitute a
binding obligation on the part of such depository; but at no time shall such
public funds be on deposit in any such depository availing itself of the
provisions of this proviso to an amount in excess of sixty per centum of the
capital and surplus of such depository unless and until such excess be
secured as provided by the provisions of this section which precede this
proviso.

§ 58-947. The amount of bond given or the market value of securities
pledged by any depository as aforesaid shall at all times be at least equal
in amount to the amount of money on deposit with the depository, less such
amount thereof as shall be insured by the Federal Deposit Insurance Cor-
poration, a corporation created by an Act of the Congress of the United
States, approved June sixteenth, nineteen hundred and thirty-three, and
known as the banking act of nineteen hundred and thirty-three. *