CHAPTER 498

An Act to amend and reenact § 58-944, as amended, of the Code of
Virginia, relating to bond or pledge of securities by depositories.

(H 532]
Approved April 4, 1966

Be it enacted by the General Assembly of Virginia:
1. That § 58-944, as amended, 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

hina a ee ee
who elect to give bond to protect money deposited with them by the State

Treasurer pursuant to the provisions of §§ 2.1-211 to 2.1-214 or until such

depository shall have pledged and deposited in the manner and to the ex-

tent hereinafter provided and for the protection of the money deposited

with it pursuant to the provisions of this section securities of the character

eres * to secure deposits of the State treasury as provided in
1-218.

Provided however, that:

(a) All securities offered by a depository shall have the approval of
the county * treasurer or his duly authorized assistant or deputy which
approval may, in the * treasurer’s discretion be by general authorization
to the depository and escrow agent to substitute from time to time *
securities complying with the provisions of § 2.1-218 and provided that *
at the time of substitution the securities substituted shall be of market
value at least equal to the market value of the security for which sub-
stituted. 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 * treasurer may at any time revoke its
general authorization and require approval of substitution in each case.
The treasurer, or his duly authorized assistant or deputy may from time to
tame authorize substitutions of or additions to or releases of securities and
upon instruction from any of such persons an escrow agent may effect such
substitutions, additions or releases and shall be under no duty of inquiry as
to the amount of money on deposit with the depository pledging such
security; 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 be-
fore 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 distribution of the assets of such depository, be paid in full before any
other depositors 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; and

(c) Notwithstanding any other provisions of law, no depository shall
be required to give bond or pledge securities in the manner herein pro-
vided, for the purpose of securing deposits received or held in the trust
department of the depository and which are secured as required by
§ 6.1-121 of the Code of Virginia or which are secured pursuant to 12
USCA, § 92a of the United States Code by securities of the classes pre-
scribed by § 6.1-21.