2.2-4602 - Local government investment pool created. - Virginia Statutes

§ 2.2-4602. Local government investment pool created.

A. A local government investment pool is created, consisting of the aggregateof all funds from local officials handling public funds that are placed inthe custody of the State Treasurer for investment and reinvestment asprovided in this chapter.

B. The Treasury Board or its designee shall administer the local governmentinvestment pool on behalf of the participating local officials subject toregulations and guidelines adopted by the Treasury Board.

C. The Treasury Board or its designee shall invest moneys in the localgovernment investment pool with the degree of judgment and care, undercircumstances then prevailing, which persons of prudence, discretion, andintelligence exercise in the management of their own affairs, not forspeculation, but for investment, considering the probable safety of theircapital as well as the probable income to be derived. Specifically, the typesof authorized investments for local government investment pool assets shallbe limited to those set forth for local officials in Chapter 45 (§ 2.2-4500et seq.) of this title.

D. A separate account for each participant in the fund shall be kept torecord individual transactions and totals of all investments belonging toeach participant. A monthly report showing the changes in investments madeduring the preceding month shall be furnished to each participant having abeneficial interest in the local government investment pool. Details of anyinvestment transaction shall be furnished to any participant upon request.

E. The Treasury Board or its designee shall administer and handle theaccounts in the same manner as bond and sinking fund trust accounts.

F. The principal and accrued income, and any part thereof, of each and everyaccount maintained for a participant in the local government investment poolshall be subject to payment at any time from the local government investmentpool upon request, subject to applicable regulations and guidelines.Accumulated income shall be remitted or credited to each participant at leastquarterly.

G. Except as provided in this section, all instruments of title of allinvestments of the local government investment pool shall remain in thecustody of the State Treasurer. The State Treasurer may deposit with one ormore fiscal agents or banks, those instruments of title he considersadvisable, to be held in safekeeping by the agents or banks for collection ofthe principal and interest or other income, or of the proceeds of sale. TheState Treasurer shall collect the principal and interest or other income frominvestments of the investment pool, the instruments of title to which are inhis custody, when due and payable.

(1980, c. 538, § 2.1-234.8; 1984, c. 320; 1988, c. 834; 2001, c. 844.)