§ 6.2-1089. (Effective October 1, 2010) Funds awaiting investment ordistribution.
A. Funds and assets held in a fiduciary capacity by an association awaitinginvestment or distribution shall not be held uninvested or undistributed anylonger than is reasonable for the proper management of the trust account.
B. Funds and assets held in trust by an association, including managingagency accounts, awaiting investment or distribution, unless prohibited bythe governing instrument, may be deposited in other departments of theassociation, provided that the association shall first set aside under thesole control of the trust department, as collateral security:
1. Direct obligations of the United States, or other obligations fullyguaranteed by the United States as to principal and interest;
2. Readily marketable securities of the classes in which fiduciaries areauthorized or permitted to invest trust funds, as set forth in § 26-40.01; or
3. Other readily marketable securities as may be authorized by theCommissioner.
Such collateral securities, or securities substituted therefor as collateral,shall at all times be at least equal in face value to the amount of trustfunds so deposited, but such security shall not be required to the extentthat the funds so deposited are insured by the Federal Deposit InsuranceCorporation or other federal insurance agency. The requirements of thissubsection are met when qualifying assets of the association are pledged insuch manner as to fully secure all trust account funds deposited by the trustdepartment of the association in another department of the association.
C. Any funds held by an association as fiduciary awaiting investment ordistribution and deposited in other departments of the association shall bemade productive.
D. In the event of the failure or liquidation of an association, the ownersof the funds held in trust and deposited in another department of theassociation shall have a first lien on the securities set apart as collateralfor such funds, in addition to any other claim that such owners may haveagainst the association.
(1984, c. 303, § 6.1-195.76; 1990, c. 3; 1992, c. 810; 2010, c. 794.)
§ 6.2-1089. (Effective October 1, 2010) Funds awaiting investment ordistribution.
A. Funds and assets held in a fiduciary capacity by an association awaitinginvestment or distribution shall not be held uninvested or undistributed anylonger than is reasonable for the proper management of the trust account.
B. Funds and assets held in trust by an association, including managingagency accounts, awaiting investment or distribution, unless prohibited bythe governing instrument, may be deposited in other departments of theassociation, provided that the association shall first set aside under thesole control of the trust department, as collateral security:
1. Direct obligations of the United States, or other obligations fullyguaranteed by the United States as to principal and interest;
2. Readily marketable securities of the classes in which fiduciaries areauthorized or permitted to invest trust funds, as set forth in § 26-40.01; or
3. Other readily marketable securities as may be authorized by theCommissioner.
Such collateral securities, or securities substituted therefor as collateral,shall at all times be at least equal in face value to the amount of trustfunds so deposited, but such security shall not be required to the extentthat the funds so deposited are insured by the Federal Deposit InsuranceCorporation or other federal insurance agency. The requirements of thissubsection are met when qualifying assets of the association are pledged insuch manner as to fully secure all trust account funds deposited by the trustdepartment of the association in another department of the association.
C. Any funds held by an association as fiduciary awaiting investment ordistribution and deposited in other departments of the association shall bemade productive.
D. In the event of the failure or liquidation of an association, the ownersof the funds held in trust and deposited in another department of theassociation shall have a first lien on the securities set apart as collateralfor such funds, in addition to any other claim that such owners may haveagainst the association.
(1984, c. 303, § 6.1-195.76; 1990, c. 3; 1992, c. 810; 2010, c. 794.)
§ 6.2-1089. (Effective October 1, 2010) Funds awaiting investment ordistribution.
A. Funds and assets held in a fiduciary capacity by an association awaitinginvestment or distribution shall not be held uninvested or undistributed anylonger than is reasonable for the proper management of the trust account.
B. Funds and assets held in trust by an association, including managingagency accounts, awaiting investment or distribution, unless prohibited bythe governing instrument, may be deposited in other departments of theassociation, provided that the association shall first set aside under thesole control of the trust department, as collateral security:
1. Direct obligations of the United States, or other obligations fullyguaranteed by the United States as to principal and interest;
2. Readily marketable securities of the classes in which fiduciaries areauthorized or permitted to invest trust funds, as set forth in § 26-40.01; or
3. Other readily marketable securities as may be authorized by theCommissioner.
Such collateral securities, or securities substituted therefor as collateral,shall at all times be at least equal in face value to the amount of trustfunds so deposited, but such security shall not be required to the extentthat the funds so deposited are insured by the Federal Deposit InsuranceCorporation or other federal insurance agency. The requirements of thissubsection are met when qualifying assets of the association are pledged insuch manner as to fully secure all trust account funds deposited by the trustdepartment of the association in another department of the association.
C. Any funds held by an association as fiduciary awaiting investment ordistribution and deposited in other departments of the association shall bemade productive.
D. In the event of the failure or liquidation of an association, the ownersof the funds held in trust and deposited in another department of theassociation shall have a first lien on the securities set apart as collateralfor such funds, in addition to any other claim that such owners may haveagainst the association.
(1984, c. 303, § 6.1-195.76; 1990, c. 3; 1992, c. 810; 2010, c. 794.)
