{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4501.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4501.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4501.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4501.html"}],"law_id":79828,"edition_id":1,"section_id":79828,"structure_id":13675,"section_number":"2.2-4501","catch_line":"Legal investments for other public funds","history":"1956, c. 184, \u00a7 2-298; 1966, c. 677, \u00a7 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; 2015, cc. 502, 503.","full_text":"A\n\nThe Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds, in the following:1\n\nStocks, bonds, notes, and other evidences of indebtedness of the Commonwealth and those unconditionally guaranteed as to the payment of principal and interest by the Commonwealth.2\n\nBonds, notes and other obligations of the United States, and securities unconditionally guaranteed as to the payment of principal and interest by the United States, or any agency thereof. The evidences of indebtedness enumerated by this subdivision may be held directly, or in the form of repurchase agreements collateralized by such debt securities, or in the form of securities of any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio of such investment company or investment trust is limited to such evidences of indebtedness, or repurchase agreements collateralized by such debt securities, or securities of other such investment companies or investment trusts whose portfolios are so restricted.3\n\nStocks, bonds, notes and other evidences of indebtedness of any state of the United States upon which there is no default and upon which there has been no default for more than 90 days, provided that within the 20 fiscal years next preceding the making of such investment, such state has not been in default for more than 90 days in the payment of any part of principal or interest of any debt authorized by the legislature of such state to be contracted.4\n\nStocks, bonds, notes and other evidences of indebtedness of any county, city, town, district, authority or other public body in the Commonwealth upon which there is no default, provided that if the principal and interest be payable from revenues or tolls and the project has not been completed, or if completed, has not established an operating record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, the standards of judgment and care required in Article 9 (§ 64.2-780 et seq.) of Chapter 7 of Title 64.2, without reference to this section, shall apply.\n\t\t\t\tIn any case in which an authority, having an established record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, issues additional evidences of indebtedness for the purposes of acquiring or constructing additional facilities of the same general character that it is then operating, such additional evidences of indebtedness shall be governed by the provisions of this section without limitation.5\n\nLegally authorized stocks, bonds, notes and other evidences of indebtedness of any city, county, town, or district situated in any one of the states of the United States upon which there is no default and upon which there has been no default for more than 90 days, provided that (i) within the 20 fiscal years next preceding the making of such investment, such city, county, town, or district has not been in default for more than 90 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 least 20 years; (iii) such city, county, town, or district has a population, as shown by the federal census next preceding the making of such investment, of not less than 25,000 inhabitants; (iv) the stocks, bonds, notes or other evidences of indebtedness in which such investment is made are the direct legal 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 taxable real property therein for the payment of such obligations without limitation of rate or amount; and (vi) the net indebtedness of such city, county, town, or district (including the issue in which such investment is made), after deducting the amount of its bonds issued for self-sustaining public utilities, does not exceed 10 percent of the value of the taxable property in such city, county, town, or district, to be ascertained by the valuation of such property therein for the assessment of taxes next preceding the making of such investment.6\n\nBonds and other obligations issued, guaranteed or assumed by the International Bank for Reconstruction and Development, by the Asian Development Bank or by the African Development Bank.B\n\nThis section shall not apply to funds authorized by law to be invested by the Virginia Retirement System or to deferred compensation plan funds to be invested pursuant to § 51.1-601 or to funds contributed by a locality to a pension program for the benefit of any volunteer fire department or volunteer emergency medical services agency established pursuant to § 15.2-955.C\n\nInvestments made prior to July 1, 1991, pursuant to § 51.1-601 are ratified and deemed valid to the extent that such investments were made in conformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.) of Title 51.1.","order_by":null,"text":{"0":{"id":285952,"text":"The Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds, in the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":285953,"text":"Stocks, bonds, notes, and other evidences of indebtedness of the Commonwealth and those unconditionally guaranteed as to the payment of principal and interest by the Commonwealth.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":285954,"text":"Bonds, notes and other obligations of the United States, and securities unconditionally guaranteed as to the payment of principal and interest by the United States, or any agency thereof. The evidences of indebtedness enumerated by this subdivision may be held directly, or in the form of repurchase agreements collateralized by such debt securities, or in the form of securities of any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio of such investment company or investment trust is limited to such evidences of indebtedness, or repurchase agreements collateralized by such debt securities, or securities of other such investment companies or investment trusts whose portfolios are so restricted.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":285955,"text":"Stocks, bonds, notes and other evidences of indebtedness of any state of the United States upon which there is no default and upon which there has been no default for more than 90 days, provided that within the 20 fiscal years next preceding the making of such investment, such state has not been in default for more than 90 days in the payment of any part of principal or interest of any debt authorized by the legislature of such state to be contracted.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":285956,"text":"Stocks, bonds, notes and other evidences of indebtedness of any county, city, town, district, authority or other public body in the Commonwealth upon which there is no default, provided that if the principal and interest be payable from revenues or tolls and the project has not been completed, or if completed, has not established an operating record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, the standards of judgment and care required in Article 9 (§ 64.2-780 et seq.) of Chapter 7 of Title 64.2, without reference to this section, shall apply.\n\t\t\t\tIn any case in which an authority, having an established record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, issues additional evidences of indebtedness for the purposes of acquiring or constructing additional facilities of the same general character that it is then operating, such additional evidences of indebtedness shall be governed by the provisions of this section without limitation.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":285957,"text":"Legally authorized stocks, bonds, notes and other evidences of indebtedness of any city, county, town, or district situated in any one of the states of the United States upon which there is no default and upon which there has been no default for more than 90 days, provided that (i) within the 20 fiscal years next preceding the making of such investment, such city, county, town, or district has not been in default for more than 90 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 least 20 years; (iii) such city, county, town, or district has a population, as shown by the federal census next preceding the making of such investment, of not less than 25,000 inhabitants; (iv) the stocks, bonds, notes or other evidences of indebtedness in which such investment is made are the direct legal 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 taxable real property therein for the payment of such obligations without limitation of rate or amount; and (vi) the net indebtedness of such city, county, town, or district (including the issue in which such investment is made), after deducting the amount of its bonds issued for self-sustaining public utilities, does not exceed 10 percent of the value of the taxable property in such city, county, town, or district, to be ascertained by the valuation of such property therein for the assessment of taxes next preceding the making of such investment.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":285958,"text":"Bonds and other obligations issued, guaranteed or assumed by the International Bank for Reconstruction and Development, by the Asian Development Bank or by the African Development Bank.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":285959,"text":"This section shall not apply to funds authorized by law to be invested by the Virginia Retirement System or to deferred compensation plan funds to be invested pursuant to § 51.1-601 or to funds contributed by a locality to a pension program for the benefit of any volunteer fire department or volunteer emergency medical services agency established pursuant to § 15.2-955.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"C"},"8":{"id":285960,"text":"Investments made prior to July 1, 1991, pursuant to § 51.1-601 are ratified and deemed valid to the extent that such investments were made in conformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.) of Title 51.1.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13675,"edition_id":1,"name":"Investment of Public Funds Act","identifier":"45","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:45:32","date_modified":"2026-06-26 03:45:32","permalink":{"id":177505,"object_type":"structure","relational_id":13675,"identifier":"45","token":"2.2\/II\/B\/45","url":"\/2.2\/II\/B\/45\/","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":65575,"structure_id":13675,"section_number":"2.2-4500","catch_line":"Legal investments for public sinking funds","url":"\/2.2-4500\/","token":"2.2\/II\/B\/45\/2.2-4500","metadata":false},{"id":79828,"structure_id":13675,"section_number":"2.2-4501","catch_line":"Legal investments for other public funds","url":"\/2.2-4501\/","token":"2.2\/II\/B\/45\/2.2-4501","metadata":false},{"id":57079,"structure_id":13675,"section_number":"2.2-4502","catch_line":"Investment of funds of Commonwealth, political subdivisions, and public bodies in \"prime quality\" commercial paper","url":"\/2.2-4502\/","token":"2.2\/II\/B\/45\/2.2-4502","metadata":false},{"id":64306,"structure_id":13675,"section_number":"2.2-4503","catch_line":"Investments by Fairfax County finance director","url":"\/2.2-4503\/","token":"2.2\/II\/B\/45\/2.2-4503","metadata":false},{"id":58696,"structure_id":13675,"section_number":"2.2-4504","catch_line":"Investment of funds by the Commonwealth and political subdivisions in bankers' acceptances","url":"\/2.2-4504\/","token":"2.2\/II\/B\/45\/2.2-4504","metadata":false},{"id":71258,"structure_id":13675,"section_number":"2.2-4505","catch_line":"Investment in certificates representing ownership of treasury bond principal at maturity or its coupons for accrued periods","url":"\/2.2-4505\/","token":"2.2\/II\/B\/45\/2.2-4505","metadata":false},{"id":56721,"structure_id":13675,"section_number":"2.2-4506","catch_line":"Securities lending","url":"\/2.2-4506\/","token":"2.2\/II\/B\/45\/2.2-4506","metadata":false},{"id":72437,"structure_id":13675,"section_number":"2.2-4507","catch_line":"Investment of funds in overnight, term and open repurchase agreements","url":"\/2.2-4507\/","token":"2.2\/II\/B\/45\/2.2-4507","metadata":false},{"id":70891,"structure_id":13675,"section_number":"2.2-4508","catch_line":"Investment of certain public moneys in certain mutual funds","url":"\/2.2-4508\/","token":"2.2\/II\/B\/45\/2.2-4508","metadata":false},{"id":69750,"structure_id":13675,"section_number":"2.2-4509","catch_line":"Investment of funds in negotiable certificates of deposit and negotiable bank deposit notes","url":"\/2.2-4509\/","token":"2.2\/II\/B\/45\/2.2-4509","metadata":false},{"id":69105,"structure_id":13675,"section_number":"2.2-4510","catch_line":"Investment of funds in corporate notes","url":"\/2.2-4510\/","token":"2.2\/II\/B\/45\/2.2-4510","metadata":false},{"id":83850,"structure_id":13675,"section_number":"2.2-4511","catch_line":"Investment of funds in asset-backed securities","url":"\/2.2-4511\/","token":"2.2\/II\/B\/45\/2.2-4511","metadata":false},{"id":74665,"structure_id":13675,"section_number":"2.2-4512","catch_line":"Investment of funds by State Treasurer in obligations of foreign sovereign governments","url":"\/2.2-4512\/","token":"2.2\/II\/B\/45\/2.2-4512","metadata":false},{"id":69524,"structure_id":13675,"section_number":"2.2-4513","catch_line":"Investments by transportation commissions","url":"\/2.2-4513\/","token":"2.2\/II\/B\/45\/2.2-4513","metadata":false},{"id":55021,"structure_id":13675,"section_number":"2.2-4513.1","catch_line":"Investment of funds in qualified investment pools","url":"\/2.2-4513.1\/","token":"2.2\/II\/B\/45\/2.2-4513.1","metadata":false},{"id":87084,"structure_id":13675,"section_number":"2.2-4514","catch_line":"Commonwealth and its political subdivisions as trustee of public funds; standard of care in investing such funds","url":"\/2.2-4514\/","token":"2.2\/II\/B\/45\/2.2-4514","metadata":false},{"id":80678,"structure_id":13675,"section_number":"2.2-4515","catch_line":"Collateral and safekeeping arrangements","url":"\/2.2-4515\/","token":"2.2\/II\/B\/45\/2.2-4515","metadata":false},{"id":82442,"structure_id":13675,"section_number":"2.2-4516","catch_line":"Liability of treasurers or public depositors","url":"\/2.2-4516\/","token":"2.2\/II\/B\/45\/2.2-4516","metadata":false},{"id":54653,"structure_id":13675,"section_number":"2.2-4517","catch_line":"Contracts on interest rates, currency, cash flow or on other basis","url":"\/2.2-4517\/","token":"2.2\/II\/B\/45\/2.2-4517","metadata":false},{"id":66499,"structure_id":13675,"section_number":"2.2-4518","catch_line":"Investment of funds in deposits","url":"\/2.2-4518\/","token":"2.2\/II\/B\/45\/2.2-4518","metadata":false},{"id":82053,"structure_id":13675,"section_number":"2.2-4519","catch_line":"Investment of funds by the Virginia Housing Development Authority and the Virginia Resources Authority","url":"\/2.2-4519\/","token":"2.2\/II\/B\/45\/2.2-4519","metadata":false}],"previous_section":{"id":65575,"structure_id":13675,"section_number":"2.2-4500","catch_line":"Legal investments for public sinking funds","url":"\/2.2-4500\/","token":"2.2\/II\/B\/45\/2.2-4500","metadata":false},"next_section":{"id":57079,"structure_id":13675,"section_number":"2.2-4502","catch_line":"Investment of funds of Commonwealth, political subdivisions, and public bodies in \"prime quality\" commercial paper","url":"\/2.2-4502\/","token":"2.2\/II\/B\/45\/2.2-4502","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4501\/","history_text":"

This law was first created in 1956. The record of its establishment is cataloged in chapter 184 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 1956 \u201cActs\u201d aren\u2019t available online. It has been modified 11 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 1966, chapter 677; in 1980, chapter 596; in 1988, chapter 834; in 1991, chapter 379; in 1992, chapter 810; in 1996, chapter 508<\/a>; in 1999, chapter 772<\/a>; in 2001, chapter 844<\/a>; in 2007, chapter 67<\/a>; in 2008, chapter 295<\/a>; in 2015, chapters 502<\/a> and 503<\/a>.<\/p>","references":false,"refers_to":[{"id":68128,"section_number":"51.1-600","catch_line":"Definitions","order_by":null,"url":"\/51.1-600\/"},{"id":56583,"section_number":"51.1-601","catch_line":"Contract for deferred compensation","order_by":null,"url":"\/51.1-601\/"},{"id":57841,"section_number":"64.2-780","catch_line":"Definition of terms","order_by":null,"url":"\/64.2-780\/"}],"permalink":{"id":177511,"object_type":"law","relational_id":79828,"identifier":"2.2-4501","token":"2.2\/II\/B\/45\/2.2-4501","url":"\/2.2-4501\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4501\/","token":"2.2\/II\/B\/45\/2.2-4501","dublin_core":{"Title":"Legal investments for other public funds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4501","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds, in the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Stocks, bonds<\/span>, notes, and other evidences<\/span> of indebtedness of the Commonwealth and those unconditionally guaranteed as to the payment of principal and interest by the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Bonds<\/span>, notes and other obligations of the United States, and securities unconditionally guaranteed as to the payment of principal and interest by the United States, or any agency thereof. The evidences<\/span> of indebtedness enumerated by this subdivision may be held directly, or in the form of repurchase agreements collateralized by such debt securities, or in the form of securities of any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio of such investment company or investment trust is limited to such evidences<\/span> of indebtedness, or repurchase agreements collateralized by such debt securities, or securities of other such investment companies or investment trusts whose portfolios are so restricted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Stocks, bonds<\/span>, notes and other evidences<\/span> of indebtedness of any state of the United States upon which there is no default<\/span> and upon which there has been no default<\/span> for more than 90 days, provided that within the 20 fiscal years next preceding the making of such investment, such state has not been in default<\/span> for more than 90 days in the payment of any part of principal or interest of any debt authorized by the legislature of such state to be contracted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Stocks, bonds<\/span>, notes and other evidences<\/span> of indebtedness of any county, city, town, district, authority or other public body in the Commonwealth upon which there is no default<\/span>, provided that if the principal and interest be payable from revenues or tolls and the project has not been completed, or if completed, has not established an operating record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue<\/span>, the standards of judgment<\/span> and care required in Article 9 (§ 64.2-780<\/a> et seq.) of Chapter 7 of Title 64.2, without reference to this section, shall apply.\n\t\t\t\tIn any case in which an authority, having an established record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue<\/span>, issues<\/span> additional evidences<\/span> of indebtedness for the purposes of acquiring or constructing additional facilities of the same general character that it is then operating, such additional evidences<\/span> of indebtedness shall be governed by the provisions of this section without limitation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Legally authorized stocks, bonds<\/span>, notes and other evidences<\/span> of indebtedness of any city, county, town, or district situated in any one of the states of the United States upon which there is no default<\/span> and upon which there has been no default<\/span> for more than 90 days, provided that (i) within the 20 fiscal years next preceding the making of such investment, such city, county, town, or district has not been in default<\/span> for more than 90 days in the payment of any part of principal or interest of any stock, bond<\/span>, note or other evidence<\/span> of indebtedness issued by it; (ii) such city, county, town, or district shall have been in continuous existence for at least 20 years; (iii) such city, county, town, or district has a population, as shown by the federal census next preceding the making of such investment, of not less than 25,000 inhabitants; (iv) the stocks, bonds<\/span>, notes or other evidences<\/span> of indebtedness in which such investment is made are the direct legal obligations of the city, county, town, or district issuing the same; (v) the city, county, town, or district has power to levy<\/span> taxes on the taxable real property therein for the payment of such obligations without limitation of rate or amount; and (vi) the net indebtedness of such city, county, town, or district (including the issue<\/span> in which such investment is made), after deducting the amount of its bonds<\/span> issued for self-sustaining public utilities, does not exceed 10 percent of the value of the taxable property in such city, county, town, or district, to be ascertained by the valuation of such property therein for the assessment of taxes next preceding the making of such investment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Bonds<\/span> and other obligations issued, guaranteed or assumed by the International Bank for Reconstruction and Development, by the Asian Development Bank or by the African Development Bank. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> This section shall not apply to funds authorized by law<\/span> to be invested by the Virginia Retirement System or to deferred compensation plan funds to be invested pursuant to § 51.1-601<\/a> or to funds contributed by a locality to a pension program for the benefit of any volunteer fire department or volunteer emergency medical services agency established pursuant to § 15.2-955<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Investments made prior to July 1, 1991, pursuant to § 51.1-601<\/a> are ratified and deemed valid to the extent that such investments were made in conformity with the standards set forth in Chapter 6 (§ 51.1-600<\/a> et seq.) of Title 51.1. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLEGAL INVESTMENTS FOR OTHER PUBLIC FUNDS (\u00a7 2.2-4501)\n\nA. The Commonwealth, all public officers, municipal corporations, other\npolitical subdivisions and all other public bodies of the Commonwealth may\ninvest any and all moneys belonging to them or within their control, other than\nsinking funds, in the following:\n\n 1. Stocks, bonds, notes, and other evidences of indebtedness of the\n Commonwealth and those unconditionally guaranteed as to the payment of\n principal and interest by the Commonwealth.\n\n 2. Bonds, notes and other obligations of the United States, and securities\n unconditionally guaranteed as to the payment of principal and interest by the\n United States, or any agency thereof. The evidences of indebtedness enumerated\n by this subdivision may be held directly, or in the form of repurchase\n agreements collateralized by such debt securities, or in the form of\n securities of any open-end or closed-end management type investment company or\n investment trust registered under the Investment Company Act of 1940, provided\n that the portfolio of such investment company or investment trust is limited\n to such evidences of indebtedness, or repurchase agreements collateralized by\n such debt securities, or securities of other such investment companies or\n investment trusts whose portfolios are so restricted.\n\n 3. Stocks, bonds, notes and other evidences of indebtedness of any state of\n the United States upon which there is no default and upon which there has been\n no default for more than 90 days, provided that within the 20 fiscal years\n next preceding the making of such investment, such state has not been in\n default for more than 90 days in the payment of any part of principal or\n interest of any debt authorized by the legislature of such state to be\n contracted.\n\n 4. Stocks, bonds, notes and other evidences of indebtedness of any county,\n city, town, district, authority or other public body in the Commonwealth upon\n which there is no default, provided that if the principal and interest be\n payable from revenues or tolls and the project has not been completed, or if\n completed, has not established an operating record of net earnings available\n for payment of principal and interest equal to estimated requirements for that\n purpose according to the terms of the issue, the standards of judgment and\n care required in Article 9 (§ 64.2-780 et seq.) of Chapter 7 of Title\n 64.2, without reference to this section, shall apply.\n \t\t\t\tIn any case in which an authority, having an established record of net\n earnings available for payment of principal and interest equal to estimated\n requirements for that purpose according to the terms of the issue, issues\n additional evidences of indebtedness for the purposes of acquiring or\n constructing additional facilities of the same general character that it is\n then operating, such additional evidences of indebtedness shall be governed by\n the provisions of this section without limitation.\n\n 5. Legally authorized stocks, bonds, notes and other evidences of indebtedness\n of any city, county, town, or district situated in any one of the states of\n the United States upon which there is no default and upon which there has been\n no default for more than 90 days, provided that (i) within the 20 fiscal years\n next preceding the making of such investment, such city, county, town, or\n district has not been in default for more than 90 days in the payment of any\n part of principal or interest of any stock, bond, note or other evidence of\n indebtedness issued by it; (ii) such city, county, town, or district shall\n have been in continuous existence for at least 20 years; (iii) such city,\n county, town, or district has a population, as shown by the federal census\n next preceding the making of such investment, of not less than 25,000\n inhabitants; (iv) the stocks, bonds, notes or other evidences of indebtedness\n in which such investment is made are the direct legal obligations of the city,\n county, town, or district issuing the same; (v) the city, county, town, or\n district has power to levy taxes on the taxable real property therein for the\n payment of such obligations without limitation of rate or amount; and (vi) the\n net indebtedness of such city, county, town, or district (including the issue\n in which such investment is made), after deducting the amount of its bonds\n issued for self-sustaining public utilities, does not exceed 10 percent of the\n value of the taxable property in such city, county, town, or district, to be\n ascertained by the valuation of such property therein for the assessment of\n taxes next preceding the making of such investment.\n\n 6. Bonds and other obligations issued, guaranteed or assumed by the\n International Bank for Reconstruction and Development, by the Asian\n Development Bank or by the African Development Bank.\n\nB. This section shall not apply to funds authorized by law to be invested by the\nVirginia Retirement System or to deferred compensation plan funds to be invested\npursuant to § 51.1-601 or to funds contributed by a locality to a pension\nprogram for the benefit of any volunteer fire department or volunteer emergency\nmedical services agency established pursuant to § 15.2-955.\n\nC. Investments made prior to July 1, 1991, pursuant to § 51.1-601 are\nratified and deemed valid to the extent that such investments were made in\nconformity with the standards set forth in Chapter 6 (§ 51.1-600 et seq.)\nof Title 51.1.\n\nHISTORY: 1956, c. 184, \u00a7 2-298; 1966, c. 677, \u00a7 2.1-328; 1980, c. 596; 1988,\nc. 834; 1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844;\n2007, c. 67; 2008, c. 295; 2015, cc. 502, 503.","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}}