{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4403.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4403.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4403.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4403.html"}],"law_id":81935,"edition_id":1,"section_id":81935,"structure_id":13096,"section_number":"2.2-4403","catch_line":"Procedure for payment of losses by pooled method","history":"1973, c. 172, \u00a7 2.1-363; 1978, c. 14; 1984, c. 135; 2001, c. 844; 2009, c. 64; 2010, cc. 640, 674.","full_text":"When the Treasury Board determines that a qualified public depository securing public deposits in accordance with this section is a defaulting depository, it shall as promptly as practicable take steps to reimburse public depositors for uninsured public deposits using the following procedures:\n\n1\n\nThe Treasury Board shall ascertain the amount of uninsured public deposits held by the defaulting depository, either with the cooperation of the Commissioner of Financial Institutions, the receiver appointed for such depository, or by any other means available.2\n\nThe amount of such uninsured public deposits ascertained as provided in subdivision 1, plus any costs associated with liquidation, shall be assessed by the Treasury Board first against the defaulting depository to the extent of the full realizable market value of the collateral pledged to secure its public deposits.3\n\nIn the event the realized value of the pledged collateral in subdivision 2 is insufficient to satisfy the liability of the defaulting depository to its public depositors and the Treasury Board, the Treasury Board shall assess the remaining liability against all other qualified public depositories securing public deposits according to the following ratio: total average public deposit balance for each qualified public depository held during the immediately preceding twelve months divided by the total average public deposit balance for the same period held by all qualified public depositories under this section other than the defaulting depository.4\n\nAssessments made by the Treasury Board in accordance with subdivision 3 shall be payable by the close of business on the second business day following demand. Upon the failure of any qualified public depository to pay such assessment when due, the State Treasurer shall promptly take possession of the eligible collateral deposited with the non-paying depository’s escrow agent and liquidate the same to the extent necessary to pay the original assessment plus any additional costs necessary to liquidate the collateral.5\n\nUpon receipt of such assessments and the net proceeds of the eligible collateral liquidated from the State Treasurer, the Treasury Board shall reimburse the public depositors to the extent of the defaulting depository’s liability to them, net of any applicable deposit insurance.","order_by":null,"text":{"0":{"id":293578,"text":"When the Treasury Board determines that a qualified public depository securing public deposits in accordance with this section is a defaulting depository, it shall as promptly as practicable take steps to reimburse public depositors for uninsured public deposits using the following procedures:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":293579,"text":"The Treasury Board shall ascertain the amount of uninsured public deposits held by the defaulting depository, either with the cooperation of the Commissioner of Financial Institutions, the receiver appointed for such depository, or by any other means available.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":293580,"text":"The amount of such uninsured public deposits ascertained as provided in subdivision 1, plus any costs associated with liquidation, shall be assessed by the Treasury Board first against the defaulting depository to the extent of the full realizable market value of the collateral pledged to secure its public deposits.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":293581,"text":"In the event the realized value of the pledged collateral in subdivision 2 is insufficient to satisfy the liability of the defaulting depository to its public depositors and the Treasury Board, the Treasury Board shall assess the remaining liability against all other qualified public depositories securing public deposits according to the following ratio: total average public deposit balance for each qualified public depository held during the immediately preceding twelve months divided by the total average public deposit balance for the same period held by all qualified public depositories under this section other than the defaulting depository.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":293582,"text":"Assessments made by the Treasury Board in accordance with subdivision 3 shall be payable by the close of business on the second business day following demand. Upon the failure of any qualified public depository to pay such assessment when due, the State Treasurer shall promptly take possession of the eligible collateral deposited with the non-paying depository’s escrow agent and liquidate the same to the extent necessary to pay the original assessment plus any additional costs necessary to liquidate the collateral.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":293583,"text":"Upon receipt of such assessments and the net proceeds of the eligible collateral liquidated from the State Treasurer, the Treasury Board shall reimburse the public depositors to the extent of the defaulting depository’s liability to them, net of any applicable deposit insurance.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":13096,"edition_id":1,"name":"Virginia Security for Public Deposits Act","identifier":"44","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:44:17","date_modified":"2026-06-26 03:44:17","permalink":{"id":177455,"object_type":"structure","relational_id":13096,"identifier":"44","token":"2.2\/II\/B\/44","url":"\/2.2\/II\/B\/44\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12751,"edition_id":1,"name":"Transaction of Public Business","identifier":"B","label":"part","depth":3,"order_by":1,"parent_id":12750,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176445,"object_type":"structure","relational_id":12751,"identifier":"B","token":"2.2\/II\/B","url":"\/2.2\/II\/B\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12750,"edition_id":1,"name":"Administration of State Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176253,"object_type":"structure","relational_id":12750,"identifier":"II","token":"2.2\/II","url":"\/2.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":63923,"structure_id":13096,"section_number":"2.2-4400","catch_line":"Short title; declaration of intent; applicability","url":"\/2.2-4400\/","token":"2.2\/II\/B\/44\/2.2-4400","metadata":false},{"id":63362,"structure_id":13096,"section_number":"2.2-4401","catch_line":"Definitions","url":"\/2.2-4401\/","token":"2.2\/II\/B\/44\/2.2-4401","metadata":false},{"id":54139,"structure_id":13096,"section_number":"2.2-4402","catch_line":"Collateral for public deposits","url":"\/2.2-4402\/","token":"2.2\/II\/B\/44\/2.2-4402","metadata":false},{"id":81935,"structure_id":13096,"section_number":"2.2-4403","catch_line":"Procedure for payment of losses by pooled method","url":"\/2.2-4403\/","token":"2.2\/II\/B\/44\/2.2-4403","metadata":false},{"id":69042,"structure_id":13096,"section_number":"2.2-4404","catch_line":"Procedure for payment of losses by dedicated method","url":"\/2.2-4404\/","token":"2.2\/II\/B\/44\/2.2-4404","metadata":false},{"id":72652,"structure_id":13096,"section_number":"2.2-4405","catch_line":"Powers of Treasury Board relating to the administration of this chapter","url":"\/2.2-4405\/","token":"2.2\/II\/B\/44\/2.2-4405","metadata":false},{"id":56567,"structure_id":13096,"section_number":"2.2-4406","catch_line":"Subrogation of Treasury Board to depositor's rights; payment of sums received from distribution of assets","url":"\/2.2-4406\/","token":"2.2\/II\/B\/44\/2.2-4406","metadata":false},{"id":60400,"structure_id":13096,"section_number":"2.2-4407","catch_line":"Mandatory deposit of public funds in qualified public depositories","url":"\/2.2-4407\/","token":"2.2\/II\/B\/44\/2.2-4407","metadata":false},{"id":66458,"structure_id":13096,"section_number":"2.2-4408","catch_line":"Authority to make public deposits","url":"\/2.2-4408\/","token":"2.2\/II\/B\/44\/2.2-4408","metadata":false},{"id":58988,"structure_id":13096,"section_number":"2.2-4409","catch_line":"Authority to secure public deposits; acceptance of liabilities and duties by public depositories","url":"\/2.2-4409\/","token":"2.2\/II\/B\/44\/2.2-4409","metadata":false},{"id":63178,"structure_id":13096,"section_number":"2.2-4410","catch_line":"Liability of public depositors","url":"\/2.2-4410\/","token":"2.2\/II\/B\/44\/2.2-4410","metadata":false},{"id":86132,"structure_id":13096,"section_number":"2.2-4411","catch_line":"Reports of qualified public depositories","url":"\/2.2-4411\/","token":"2.2\/II\/B\/44\/2.2-4411","metadata":false}],"previous_section":{"id":54139,"structure_id":13096,"section_number":"2.2-4402","catch_line":"Collateral for public deposits","url":"\/2.2-4402\/","token":"2.2\/II\/B\/44\/2.2-4402","metadata":false},"next_section":{"id":69042,"structure_id":13096,"section_number":"2.2-4404","catch_line":"Procedure for payment of losses by dedicated method","url":"\/2.2-4404\/","token":"2.2\/II\/B\/44\/2.2-4404","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4403\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 172 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1973 \u201cActs\u201d aren\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1978, chapter 14; in 1984, chapter 135; in 2001, chapter 844<\/a>; in 2009, chapter 64<\/a>; in 2010, chapters 640<\/a> and 674<\/a>.<\/p>","references":[{"id":63362,"section_number":"2.2-4401","catch_line":"Definitions","order_by":null,"url":"\/2.2-4401\/"},{"id":72652,"section_number":"2.2-4405","catch_line":"Powers of Treasury Board relating to the administration of this chapter","order_by":null,"url":"\/2.2-4405\/"},{"id":56567,"section_number":"2.2-4406","catch_line":"Subrogation of Treasury Board to depositor's rights; payment of sums received from distribution of assets","order_by":null,"url":"\/2.2-4406\/"}],"refers_to":false,"permalink":{"id":177469,"object_type":"law","relational_id":81935,"identifier":"2.2-4403","token":"2.2\/II\/B\/44\/2.2-4403","url":"\/2.2-4403\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4403\/","token":"2.2\/II\/B\/44\/2.2-4403","dublin_core":{"Title":"Procedure for payment of losses by pooled method","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4403","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

When the Treasury Board<\/span> determines that a qualified public depository<\/span> securing public deposits<\/span> in accordance with this section is a defaulting depository<\/span>, it shall as promptly as practicable take steps to reimburse public depositors<\/span> for uninsured public deposits<\/span> using the following procedures:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Treasury Board<\/span> shall ascertain the amount of uninsured public deposits<\/span> held by the defaulting depository<\/span>, either with the cooperation of the Commissioner of Financial Institutions, the receiver appointed for such depository, or by any other means available. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The amount of such uninsured public deposits<\/span> ascertained as provided in subdivision 1, plus any costs associated with liquidation<\/span>, shall be assessed by the Treasury Board<\/span> first against the defaulting depository<\/span> to the extent of the full realizable market value of the collateral<\/span> pledged to secure its public deposits<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In the event the realized value of the pledged collateral<\/span> in subdivision 2 is insufficient to satisfy the liability of the defaulting depository<\/span> to its public depositors<\/span> and the Treasury Board<\/span>, the Treasury Board<\/span> shall assess the remaining liability against all other qualified public depositories securing public deposits<\/span> according to the following ratio: total average public deposit<\/span> balance for each qualified public depository<\/span> held during the immediately preceding twelve months divided by the total average public deposit<\/span> balance for the same period held by all qualified public depositories under this section other than the defaulting depository<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Assessments made by the Treasury Board<\/span> in accordance with subdivision 3 shall be payable by the close of business on the second business day following demand. Upon the failure of any qualified public depository<\/span> to pay such assessment when due, the State Treasurer shall promptly take possession<\/span> of the eligible collateral<\/span> deposited with the non-paying depository’s escrow agent and liquidate the same to the extent necessary to pay the original assessment plus any additional costs necessary to liquidate the collateral. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Upon receipt of such assessments and the net proceeds of the eligible collateral<\/span> liquidated from the State Treasurer, the Treasury Board<\/span> shall reimburse the public depositors<\/span> to the extent of the defaulting depository<\/span>’s liability to them, net of any applicable deposit insurance. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROCEDURE FOR PAYMENT OF LOSSES BY POOLED METHOD (\u00a7 2.2-4403)\n\nWhen the Treasury Board determines that a qualified public depository securing\npublic deposits in accordance with this section is a defaulting depository, it\nshall as promptly as practicable take steps to reimburse public depositors for\nuninsured public deposits using the following procedures:\n\n1. The Treasury Board shall ascertain the amount of uninsured public deposits\nheld by the defaulting depository, either with the cooperation of the\nCommissioner of Financial Institutions, the receiver appointed for such\ndepository, or by any other means available.\n\n2. The amount of such uninsured public deposits ascertained as provided in\nsubdivision 1, plus any costs associated with liquidation, shall be assessed by\nthe Treasury Board first against the defaulting depository to the extent of the\nfull realizable market value of the collateral pledged to secure its public\ndeposits.\n\n3. In the event the realized value of the pledged collateral in subdivision 2 is\ninsufficient to satisfy the liability of the defaulting depository to its public\ndepositors and the Treasury Board, the Treasury Board shall assess the remaining\nliability against all other qualified public depositories securing public\ndeposits according to the following ratio: total average public deposit balance\nfor each qualified public depository held during the immediately preceding\ntwelve months divided by the total average public deposit balance for the same\nperiod held by all qualified public depositories under this section other than\nthe defaulting depository.\n\n4. Assessments made by the Treasury Board in accordance with subdivision 3 shall\nbe payable by the close of business on the second business day following demand.\nUpon the failure of any qualified public depository to pay such assessment when\ndue, the State Treasurer shall promptly take possession of the eligible\ncollateral deposited with the non-paying depository’s escrow agent and\nliquidate the same to the extent necessary to pay the original assessment plus\nany additional costs necessary to liquidate the collateral.\n\n5. Upon receipt of such assessments and the net proceeds of the eligible\ncollateral liquidated from the State Treasurer, the Treasury Board shall\nreimburse the public depositors to the extent of the defaulting\ndepository’s liability to them, net of any applicable deposit insurance.\n\nHISTORY: 1973, c. 172, \u00a7 2.1-363; 1978, c. 14; 1984, c. 135; 2001, c. 844;\n2009, c. 64; 2010, cc. 640, 674.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}