2.2-4515 - Collateral and safekeeping arrangements. - Virginia Statutes

§ 2.2-4515. Collateral and safekeeping arrangements.

Securities purchased pursuant to the provisions of this chapter shall be heldby the public official, municipal corporation or other political subdivisionor public body or its custodial agent who may not otherwise be a counterpartyto the investment transaction. Securities held on the books of the custodialagent by a custodial agent shall be held in the name of the municipalcorporation, political subdivision or other public body subject to the publicbody's order of withdrawal. The responsibilities of the public official,municipal corporation, political subdivision or other public body shall beevidenced by a written agreement that shall provide for delivery of thesecurities by the custodial agent in the event of default by a counterpartyto the investment transaction.

As used in this section, "counterparty" means the issuer or seller of asecurity, an agent purchasing a security on behalf of a public official,municipal corporation, political subdivision or other public body or theparty responsible for repurchasing securities underlying a repurchaseagreement.

The provisions of this section shall not apply to (i) investments with amaturity of less than 31 calendar days or (ii) the State Treasurer, who shallcomply with safekeeping guidelines issued by the Treasury Board or toendowment funds invested in accordance with the provisions of the UniformPrudent Management of Institutional Funds Act, Article 1.2 (§ 55-268.11 etseq.) of Chapter 15 of Title 55.

(1988, c. 834, § 2.1-329.01; 2001, c. 844; 2008, c. 184.)