§ 2.2-4501. Legal investments for other public funds.
A. The Commonwealth, all public officers, municipal corporations, otherpolitical subdivisions and all other public bodies of the Commonwealth mayinvest any and all moneys belonging to them or within their control, otherthan sinking funds, in the following:
1. Stocks, bonds, notes, and other evidences of indebtedness of theCommonwealth and those unconditionally guaranteed as to the payment ofprincipal and interest by the Commonwealth.
2. Bonds, notes and other obligations of the United States, and securitiesunconditionally guaranteed as to the payment of principal and interest by theUnited States, or any agency thereof. The evidences of indebtednessenumerated by this subdivision may be held directly, or in the form ofrepurchase agreements collateralized by such debt securities, or in the formof securities of any open-end or closed-end management type investmentcompany or investment trust registered under the Investment Company Act of1940, provided that the portfolio of such investment company or investmenttrust is limited to such evidences of indebtedness, or repurchase agreementscollateralized by such debt securities, or securities of other suchinvestment companies or investment trusts whose portfolios are so restricted.
3. Stocks, bonds, notes and other evidences of indebtedness of any state ofthe United States upon which there is no default and upon which there hasbeen no default for more than ninety days; provided, that within the twentyfiscal years next preceding the making of such investment, such state has notbeen in default for more than ninety days in the payment of any part ofprincipal or interest of any debt authorized by the legislature of such stateto be contracted.
4. Stocks, bonds, notes and other evidences of indebtedness of any county,city, town, district, authority or other public body in the Commonwealth uponwhich there is no default; provided, that if the principal and interest bepayable from revenues or tolls and the project has not been completed, or ifcompleted, has not established an operating record of net earnings availablefor payment of principal and interest equal to estimated requirements forthat purpose according to the terms of the issue, the standards of judgmentand care required in Article 2 (§ 26-45.3 et seq.) of Chapter 3 of Title 26,without reference to this section, shall apply.
In any case in which an authority, having an established record of netearnings available for payment of principal and interest equal to estimatedrequirements for that purpose according to the terms of the issue, issuesadditional evidences of indebtedness for the purposes of acquiring orconstructing additional facilities of the same general character that it isthen operating, such additional evidences of indebtedness shall be governedby the provisions of this section without limitation.
5. Legally authorized stocks, bonds, notes and other evidences ofindebtedness of any city, county, town or district situated in any one of thestates of the United States upon which there is no default and upon whichthere has been no default for more than ninety days; provided, that (i)within the twenty fiscal years next preceding the making of such investment,such city, county, town or district has not been in default for more thanninety days in the payment of any part of principal or interest of any stock,bond, note or other evidence of indebtedness issued by it; (ii) such city,county, town or district shall have been in continuous existence for at leasttwenty years; (iii) such city, county, town or district has a population, asshown by the federal census next preceding the making of such investment, ofnot less than 25,000 inhabitants; (iv) the stocks, bonds, notes or otherevidences of indebtedness in which such investment is made are the directlegal obligations of the city, county, town or district issuing the same; (v)the city, county, town or district has power to levy taxes on the taxablereal property therein for the payment of such obligations without limitationof rate or amount; and (vi) the net indebtedness of such city, county, townor district (including the issue in which such investment is made), afterdeducting the amount of its bonds issued for self-sustaining publicutilities, does not exceed ten percent of the value of the taxable propertyin such city, county, town or district, to be ascertained by the valuation ofsuch property therein for the assessment of taxes next preceding the makingof such investment.
6. Bonds and other obligations issued, guaranteed or assumed by theInternational Bank for Reconstruction and Development, by the AsianDevelopment Bank or by the African Development Bank.
B. This section shall not apply to funds authorized by law to be invested bythe Virginia Retirement System or to deferred compensation plan funds to beinvested pursuant to § 51.1-601 or to funds contributed by a locality to apension program for the benefit of any volunteer fire department and rescuesquad established pursuant to § 15.2-955.
C. Investments made prior to July 1, 1991, pursuant to § 51.1-601 areratified and deemed valid to the extent that such investments were made inconformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.) ofTitle 51.1.
(1956, c. 184, § 2-298; 1966, c. 677, § 2.1-328; 1980, c. 596; 1988, c. 834;1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844; 2007,c. 67; 2008, c. 295.)
§ 2.2-4501. Legal investments for other public funds.
A. The Commonwealth, all public officers, municipal corporations, otherpolitical subdivisions and all other public bodies of the Commonwealth mayinvest any and all moneys belonging to them or within their control, otherthan sinking funds, in the following:
1. Stocks, bonds, notes, and other evidences of indebtedness of theCommonwealth and those unconditionally guaranteed as to the payment ofprincipal and interest by the Commonwealth.
2. Bonds, notes and other obligations of the United States, and securitiesunconditionally guaranteed as to the payment of principal and interest by theUnited States, or any agency thereof. The evidences of indebtednessenumerated by this subdivision may be held directly, or in the form ofrepurchase agreements collateralized by such debt securities, or in the formof securities of any open-end or closed-end management type investmentcompany or investment trust registered under the Investment Company Act of1940, provided that the portfolio of such investment company or investmenttrust is limited to such evidences of indebtedness, or repurchase agreementscollateralized by such debt securities, or securities of other suchinvestment companies or investment trusts whose portfolios are so restricted.
3. Stocks, bonds, notes and other evidences of indebtedness of any state ofthe United States upon which there is no default and upon which there hasbeen no default for more than ninety days; provided, that within the twentyfiscal years next preceding the making of such investment, such state has notbeen in default for more than ninety days in the payment of any part ofprincipal or interest of any debt authorized by the legislature of such stateto be contracted.
4. Stocks, bonds, notes and other evidences of indebtedness of any county,city, town, district, authority or other public body in the Commonwealth uponwhich there is no default; provided, that if the principal and interest bepayable from revenues or tolls and the project has not been completed, or ifcompleted, has not established an operating record of net earnings availablefor payment of principal and interest equal to estimated requirements forthat purpose according to the terms of the issue, the standards of judgmentand care required in Article 2 (§ 26-45.3 et seq.) of Chapter 3 of Title 26,without reference to this section, shall apply.
In any case in which an authority, having an established record of netearnings available for payment of principal and interest equal to estimatedrequirements for that purpose according to the terms of the issue, issuesadditional evidences of indebtedness for the purposes of acquiring orconstructing additional facilities of the same general character that it isthen operating, such additional evidences of indebtedness shall be governedby the provisions of this section without limitation.
5. Legally authorized stocks, bonds, notes and other evidences ofindebtedness of any city, county, town or district situated in any one of thestates of the United States upon which there is no default and upon whichthere has been no default for more than ninety days; provided, that (i)within the twenty fiscal years next preceding the making of such investment,such city, county, town or district has not been in default for more thanninety days in the payment of any part of principal or interest of any stock,bond, note or other evidence of indebtedness issued by it; (ii) such city,county, town or district shall have been in continuous existence for at leasttwenty years; (iii) such city, county, town or district has a population, asshown by the federal census next preceding the making of such investment, ofnot less than 25,000 inhabitants; (iv) the stocks, bonds, notes or otherevidences of indebtedness in which such investment is made are the directlegal obligations of the city, county, town or district issuing the same; (v)the city, county, town or district has power to levy taxes on the taxablereal property therein for the payment of such obligations without limitationof rate or amount; and (vi) the net indebtedness of such city, county, townor district (including the issue in which such investment is made), afterdeducting the amount of its bonds issued for self-sustaining publicutilities, does not exceed ten percent of the value of the taxable propertyin such city, county, town or district, to be ascertained by the valuation ofsuch property therein for the assessment of taxes next preceding the makingof such investment.
6. Bonds and other obligations issued, guaranteed or assumed by theInternational Bank for Reconstruction and Development, by the AsianDevelopment Bank or by the African Development Bank.
B. This section shall not apply to funds authorized by law to be invested bythe Virginia Retirement System or to deferred compensation plan funds to beinvested pursuant to § 51.1-601 or to funds contributed by a locality to apension program for the benefit of any volunteer fire department and rescuesquad established pursuant to § 15.2-955.
C. Investments made prior to July 1, 1991, pursuant to § 51.1-601 areratified and deemed valid to the extent that such investments were made inconformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.) ofTitle 51.1.
(1956, c. 184, § 2-298; 1966, c. 677, § 2.1-328; 1980, c. 596; 1988, c. 834;1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844; 2007,c. 67; 2008, c. 295.)
§ 2.2-4501. Legal investments for other public funds.
A. The Commonwealth, all public officers, municipal corporations, otherpolitical subdivisions and all other public bodies of the Commonwealth mayinvest any and all moneys belonging to them or within their control, otherthan sinking funds, in the following:
1. Stocks, bonds, notes, and other evidences of indebtedness of theCommonwealth and those unconditionally guaranteed as to the payment ofprincipal and interest by the Commonwealth.
2. Bonds, notes and other obligations of the United States, and securitiesunconditionally guaranteed as to the payment of principal and interest by theUnited States, or any agency thereof. The evidences of indebtednessenumerated by this subdivision may be held directly, or in the form ofrepurchase agreements collateralized by such debt securities, or in the formof securities of any open-end or closed-end management type investmentcompany or investment trust registered under the Investment Company Act of1940, provided that the portfolio of such investment company or investmenttrust is limited to such evidences of indebtedness, or repurchase agreementscollateralized by such debt securities, or securities of other suchinvestment companies or investment trusts whose portfolios are so restricted.
3. Stocks, bonds, notes and other evidences of indebtedness of any state ofthe United States upon which there is no default and upon which there hasbeen no default for more than ninety days; provided, that within the twentyfiscal years next preceding the making of such investment, such state has notbeen in default for more than ninety days in the payment of any part ofprincipal or interest of any debt authorized by the legislature of such stateto be contracted.
4. Stocks, bonds, notes and other evidences of indebtedness of any county,city, town, district, authority or other public body in the Commonwealth uponwhich there is no default; provided, that if the principal and interest bepayable from revenues or tolls and the project has not been completed, or ifcompleted, has not established an operating record of net earnings availablefor payment of principal and interest equal to estimated requirements forthat purpose according to the terms of the issue, the standards of judgmentand care required in Article 2 (§ 26-45.3 et seq.) of Chapter 3 of Title 26,without reference to this section, shall apply.
In any case in which an authority, having an established record of netearnings available for payment of principal and interest equal to estimatedrequirements for that purpose according to the terms of the issue, issuesadditional evidences of indebtedness for the purposes of acquiring orconstructing additional facilities of the same general character that it isthen operating, such additional evidences of indebtedness shall be governedby the provisions of this section without limitation.
5. Legally authorized stocks, bonds, notes and other evidences ofindebtedness of any city, county, town or district situated in any one of thestates of the United States upon which there is no default and upon whichthere has been no default for more than ninety days; provided, that (i)within the twenty fiscal years next preceding the making of such investment,such city, county, town or district has not been in default for more thanninety days in the payment of any part of principal or interest of any stock,bond, note or other evidence of indebtedness issued by it; (ii) such city,county, town or district shall have been in continuous existence for at leasttwenty years; (iii) such city, county, town or district has a population, asshown by the federal census next preceding the making of such investment, ofnot less than 25,000 inhabitants; (iv) the stocks, bonds, notes or otherevidences of indebtedness in which such investment is made are the directlegal obligations of the city, county, town or district issuing the same; (v)the city, county, town or district has power to levy taxes on the taxablereal property therein for the payment of such obligations without limitationof rate or amount; and (vi) the net indebtedness of such city, county, townor district (including the issue in which such investment is made), afterdeducting the amount of its bonds issued for self-sustaining publicutilities, does not exceed ten percent of the value of the taxable propertyin such city, county, town or district, to be ascertained by the valuation ofsuch property therein for the assessment of taxes next preceding the makingof such investment.
6. Bonds and other obligations issued, guaranteed or assumed by theInternational Bank for Reconstruction and Development, by the AsianDevelopment Bank or by the African Development Bank.
B. This section shall not apply to funds authorized by law to be invested bythe Virginia Retirement System or to deferred compensation plan funds to beinvested pursuant to § 51.1-601 or to funds contributed by a locality to apension program for the benefit of any volunteer fire department and rescuesquad established pursuant to § 15.2-955.
C. Investments made prior to July 1, 1991, pursuant to § 51.1-601 areratified and deemed valid to the extent that such investments were made inconformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.) ofTitle 51.1.
(1956, c. 184, § 2-298; 1966, c. 677, § 2.1-328; 1980, c. 596; 1988, c. 834;1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844; 2007,c. 67; 2008, c. 295.)
