51.1-124.33 - Deposit of trust funds not an investment; authorized deposits. - Virginia Statutes

§ 51.1-124.33. Deposit of trust funds not an investment; authorized deposits.

The Board may authorize the deposit of trust funds in interest-bearing timedeposits and certificates of deposit of national banks located within theCommonwealth, of banks organized pursuant to the Virginia Banking Act (§6.1-3 et seq.), of savings institutions which are under state supervision,and of federal associations located in this Commonwealth and organized underthe laws of the United States and under federal supervision and federallyinsured. Such deposits shall not be considered the investment of trust fundsfor the purposes of this chapter. Deposit of the funds in demand and timedeposits and in certificates of deposit of national banks located within thisCommonwealth and of banks organized pursuant to the Virginia Banking Act ishereby authorized, provided that the deposits are secured as provided by lawand that no deposit is made for any one period in excess of one year. Depositof trust funds in savings accounts and certificates of savings institutionswhich are under state supervision and of federal associations located in thisCommonwealth and organized under the laws of the United States and underfederal supervision is hereby authorized. Such deposits shall not exceed theamount insured by the Federal Deposit Insurance Corporation or other federalinsurance agency, unless deposits in excess of the amount insured are fullycollateralized by eligible collateral as defined in § 2.2-4401. No suchdeposit shall be made for any one period in excess of one year.

(1980, c. 596, § 51-111.24:4; 1990, cc. 3, 832, § 51.1-122; 1994, cc. 4, 85.)