62.1-221 - Deposit of money; expenditures; security for deposits. - Virginia Statutes

§ 62.1-221. Deposit of money; expenditures; security for deposits.

A. All money of the Authority, except as otherwise authorized by law orprovided in this chapter, shall be deposited in an account or accounts inbanks or trust companies organized under the laws of the Commonwealth or innational banking associations located in Virginia or in savings institutionslocated in Virginia organized under the laws of the Commonwealth or theUnited States. The money in these accounts shall be paid by check signed bythe Executive Director or other officers or employees and designated by theAuthority. All deposits of money shall, if required by the Authority, besecured in a manner determined by the Authority to be prudent, and all banks,trust companies and savings institutions are authorized to give security forthe deposits.

B. Notwithstanding the provisions of subsection A the Authority shall havethe power to contract with the holders of any of its bonds as to the custody,collection, securing, investment and payment of any money of the Authorityand of any money held in trust or otherwise for the payment of bonds and tocarry out such a contract. Money held in trust or otherwise for the paymentof bonds or in any way to secure bonds and deposits of money may be securedin the same manner as money of the Authority, and all banks and trustcompanies are authorized to give security for the deposits.

C. Subject to the provisions of subsection B hereof, funds of the Authoritynot needed for immediate use or disbursement, including any funds held inreserve, may be invested in (i) obligations or securities which areconsidered lawful investments for fiduciaries, both individual and corporate,as set forth in § 26-40, (ii) bankers' acceptances, or (iii) repurchaseagreements, reverse repurchase agreements, rate guarantee or investmentagreements or other similar banking arrangements.

D. Whenever investments are made in accordance with this section, nodirector, officer or employee of the Authority shall be liable for any losstherefrom in the absence of negligence, malfeasance, misfeasance ornonfeasance on his part.

(1984, c. 699; 1985, c. 67; 1994, c. 684; 1996, c. 77.)