CHAPTER 50

An Act to amend and reenact § 51-111.24, as amended, of the Code of
Virginia, relating to the Board of Trustees of the Virginia Supple-
mental Retirement System, so as to permit certain investments.
Be it enacted by the General Assembly of Virginia: —

1. That § 51-111.24, as amended, of the Code of Virginia, be amended
and reenacted as follows:

§ 51-111.24. (a) The Board shall be the trustee of the several funds
created by this chapter and of those resulting from the abolition of the
Virginia Retirement System, and shall have full power to invest and
reinvest such funds, subject to the limitation that no investment shall
be made except, upon the exercise of bona fide discretion, In securities *
permitted for the investment of reserves of domestic life insurance com-
panies, and common and preferred stocks, limited to twenty per centum
of total trust fund investments based on cost, such as fiduciaries may invest
in under the statutory and common law of the State. Subject to such
limitation, the Board shall have full power to hold, purchase, sell, assign,
transfer or dispose 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 investments and any moneys belonging to such funds. The Board
may also, in its discretion, invest such trust funds in bonds, notes and
other evidences of debt of the school boards of the several counties, cities
and towns of the State held in the Literary Fund evidencing loans made
from such Literary Fund by the State Board of Education pursuant to
the provisions of §§ 22-101 to 22-113 and the State Board of Education 1s
hereby authorized to assign such bonds, notes and other evidences of debt
to the Board whenever the Board desires to invest any of such trust funds
therein and the State Board of Education consents thereto; and when
such bonds, notes or other evidences of debt are so acquired by the Board
the same may not be sold or otherwise disposed of except to a State
governmental agency.

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

(c) The Board shall have power to borrow money from time to
time in such amounts as may be necessary to discharge current obligations
under this chapter whenever in its judgment by so doing it would be
More advantageous than by selling securities held by the retirement
system. Any debt so incurred may be evidenced by notes duly authorized
by resolution of the Board, but in no case is the due date of any note,
notes or other evidence of debt to be beyond the end of the biennium
succeeding the biennium in which such debt is incurred. Securities held
by the retirement system may be hypothecated by the Board as security
for the payment of any debt incurred under this section.

(d) The Board is specifically authorized, subject to and in conformity
with the provisions of Chapter 19.2 of Title 15 of the Code of Virginia,
as amended, to contract with the school boards of the several counties to
lend them money belonging to the several funds administered by the Board
and in hand for investment, for the purpose of school construction in
such counties.