CHAPTER 421

An Act to amend and reenact § 9 of Chapter 494, Acts of Assembly, 1960,
approved March 81, 1960 (incorporated in the Code of Virginia by
reference as § 28-9.2:1), which created the State Education Assist-
ance Authority, and to amend the said chapter by adding §§ 9-a, 9-b
and 9-c, creating a trust fund, providing for the expenditure of cer-
tain funds, providing how the trust fund is to be invested, designating
the State Treasurer as custodian of the Authority’s assets and pre-
scribing method of payments.

[fH 110]

Approved March 31, 1962

Be it enacted by the General Assembly of Virginia:

1. That § 9 of Chapter 494, Acts of Assembly, 1960, approved March 31,
1960 (incorporated by reference in the Code of Virginia as § 23-9.2:1), be
amended and reenacted and that the said chapter be amended by adding
§§ 9-a, 9-b and 9-c, as follows:

§ 9. The appropriation made to the Authority under this act shall
be used exclusively for the purpose of acquiring contingent or vested rights
in obligations which it may acquire under this act; such appropriations,
payments, revenue and interest as well as other income received in con-
nection with such obligations is hereby established as a trust fund. Such
fund shall be used for the purposes of the Authority other than mainte-
mance and operation.
§ 9-a. The maintenance and operating expenses of the Authority
shall be paid from funds specifically appropriated for such purposes. No
part of the trust fund established under § 9 shall be expended for such
purposes.

§ 9-b(1) The Authority shall be the trustee of the trust fund hereby
created and shall have full power to invest and reinvest such funds, subject
to the limitation that no investment shall be made, except upon the exer-
cise of bona fide discretion, in securities which, at the time of making the
investment, are, by statute, permitted for the investment of reserves of
domestic life insurance companies. Subject to such limitation, the Author-
ity shall have full power to hold, purchase, sell, assign, transfer or dis-
pose of, any of the securities or investments in which any of the funds
created herein have been invested, as well as of the proceeds of such in-
vestments and any moneys belonging to such funds.

(2) In lieu of exercising all of the powers hereunder with respect to
the investment and reinvestment of the several funds, the Authority may
delegate such powers to the Treasury Board, in which event the Treasury
Board shall exercise the investment powers as prescribed herein.

§ 9-c. The State Treasurer shall be the custodian of the assets of
the Authority. All payments from the accounts thereof shall be made by
him on warrants of the Comptroller issued upon vouchers signed by such
persons as are designated by the Authority. A duly attested copy of a
resolution of the Authority designating such persons and bearing on its
face the specimen signatures of such persons shall be filed with the
Comptroller as his authority for issuing warrants upon such vouchers.