2.2-4518 - Investment of funds in deposits. - Virginia Statutes

§ 2.2-4518. Investment of funds in deposits.

A. Notwithstanding any provision of law to the contrary, the Commonwealth andall public officers, municipal corporations, other political subdivisions,and all other public bodies of the Commonwealth, each referred to in thissection as a "public entity," may invest any or all of the moneys belongingto them or within their control in accordance with the following conditions:

1. The moneys are initially invested through any federally insured bank orsavings institution selected by the public entity that is qualified by theVirginia Treasury Board to accept public deposits;

2. The selected bank or savings institution arranges for the deposit of themoneys in one or more federally insured banks or savings institutionswherever located, for the account of the public entity;

3. The full amount of principal and any accrued interest of each such depositis covered by federal deposit insurance;

4. The selected bank or savings institution acts as custodian for the publicentity with respect to each deposit issued for the public entity's account;and

5. At the same time that the public entity's moneys are deposited, theselected bank or savings institution receives an amount of deposits fromcustomers of other financial institutions wherever located equal to orgreater than the amount of moneys invested by the public entity through theselected bank or savings institution.

B. After deposits are made in accordance with the conditions prescribed insubsection A, such deposits shall not be subject to the provisions of Chapter44 (§ 2.2-4400 et seq.), § 2.2-4515, or any security or collateralrequirements that may otherwise be applicable to the investment or deposit ofpublic moneys by government investors.

(2008, c. 103; 2010, c. 33.)