{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4502.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4502.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4502.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4502.html"}],"law_id":57079,"edition_id":1,"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","history":"1973, c. 232, \u00a7 2.1-328.1; 1974, c. 295; 1976, c. 665; 1986, c. 170; 1987, c. 73; 1988, c. 834; 1992, c. 769; 2001, c. 844; 2020, c. 333.","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 “prime quality” commercial paper, with a maturity of 270 days or less, of issuing corporations organized under the laws of the United States, or of any state thereof including paper issued by banks and bank holding companies. “Prime quality” means that the paper has received at least two of the following ratings: (i) at least prime 1 by Moody’s Investors Service, Inc.; (ii) at least A1 by Standard & Poor’s; or (iii) at least F1 by Fitch Ratings, Inc., provided that at the time of any such investment:1\n\nThe issuing corporation, or its guarantor, has a net worth of at least $50 million; and2\n\nThe net income of the issuing corporation, or its guarantor, has averaged $3 million per year for the previous five years; and3\n\nAll existing senior bonded indebtedness of the issuer, or its guarantor, has received at least two of the following ratings: (i) at least A by Moody’s Investors Service, Inc.; (ii) at least A by Standard & Poor’s; or (iii) at least A by Fitch Ratings, Inc.\n\t\t\t\tNot more than 35 percent of the total funds available for investment may be invested in commercial paper, and not more than five percent of the total funds available for investment may be invested in commercial paper of any one issuing corporation.B\n\nNotwithstanding subsection A, the Commonwealth, municipal corporations, and other political subdivisions and public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, except for sinking funds, in commercial paper other than “prime quality” commercial paper as defined in this section, provided that:1\n\nPrior written approval is obtained from the governing board, committee, or other entity that determines investment policy. The Treasury Board shall be the governing body for the Commonwealth; and2\n\nA written internal credit review justifying the creditworthiness of the issuing corporation is prepared in advance and made part of the purchase file.","order_by":null,"text":{"0":{"id":209050,"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 “prime quality” commercial paper, with a maturity of 270 days or less, of issuing corporations organized under the laws of the United States, or of any state thereof including paper issued by banks and bank holding companies. “Prime quality” means that the paper has received at least two of the following ratings: (i) at least prime 1 by Moody’s Investors Service, Inc.; (ii) at least A1 by Standard & Poor’s; or (iii) at least F1 by Fitch Ratings, Inc., provided that at the time of any such investment:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":209051,"text":"The issuing corporation, or its guarantor, has a net worth of at least $50 million; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":209052,"text":"The net income of the issuing corporation, or its guarantor, has averaged $3 million per year for the previous five years; and","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":209053,"text":"All existing senior bonded indebtedness of the issuer, or its guarantor, has received at least two of the following ratings: (i) at least A by Moody’s Investors Service, Inc.; (ii) at least A by Standard & Poor’s; or (iii) at least A by Fitch Ratings, Inc.\n\t\t\t\tNot more than 35 percent of the total funds available for investment may be invested in commercial paper, and not more than five percent of the total funds available for investment may be invested in commercial paper of any one issuing corporation.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":209054,"text":"Notwithstanding subsection A, the Commonwealth, municipal corporations, and other political subdivisions and public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, except for sinking funds, in commercial paper other than “prime quality” commercial paper as defined in this section, provided that:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"5":{"id":209055,"text":"Prior written approval is obtained from the governing board, committee, or other entity that determines investment policy. The Treasury Board shall be the governing body for the Commonwealth; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"6":{"id":209056,"text":"A written internal credit review justifying the creditworthiness of the issuing corporation is prepared in advance and made part of the purchase file.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4502\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 232 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 8 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 1974, chapter 295; in 1976, chapter 665; in 1986, chapter 170; in 1987, chapter 73; in 1988, chapter 834; in 1992, chapter 769; in 2001, chapter 844<\/a>; in 2020, chapter 333<\/a>.<\/p>","references":[{"id":54699,"section_number":"33.2-1525","catch_line":"Administration of Transportation Trust Fund","order_by":null,"url":"\/33.2-1525\/"}],"refers_to":false,"permalink":{"id":177515,"object_type":"law","relational_id":57079,"identifier":"2.2-4502","token":"2.2\/II\/B\/45\/2.2-4502","url":"\/2.2-4502\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4502\/","token":"2.2\/II\/B\/45\/2.2-4502","dublin_core":{"Title":"Investment of funds of Commonwealth, political subdivisions, and public bodies in “prime quality” commercial paper","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4502","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 “prime quality<\/span>” commercial paper, with a maturity of 270 days or less, of issuing corporations organized under the laws<\/span> of the United States, or of any state thereof including paper issued by banks and bank holding companies. “Prime quality<\/span>” means that the paper has received at least two of the following ratings: (i) at least prime 1 by Moody’s Investors Service, Inc.; (ii) at least A1 by Standard & Poor’s; or (iii) at least F1 by Fitch Ratings, Inc., provided that at the time of any such investment: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The issuing corporation, or its guarantor, has a net worth of at least $50 million; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The net income of the issuing corporation, or its guarantor, has averaged $3 million per year for the previous five years; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> All existing senior bonded indebtedness of the issuer, or its guarantor, has received at least two of the following ratings: (i) at least A by Moody’s Investors Service, Inc.; (ii) at least A by Standard & Poor’s; or (iii) at least A by Fitch Ratings, Inc.\n\t\t\t\tNot more than 35 percent of the total funds available for investment may be invested in commercial paper, and not more than five percent of the total funds available for investment may be invested in commercial paper of any one issuing corporation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding subsection A, the Commonwealth, municipal corporations, and other political subdivisions and public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, except for sinking funds, in commercial paper other than “prime quality<\/span>” commercial paper as defined in this section, provided that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Prior written approval is obtained from the governing board, committee, or other entity that determines investment policy. The Treasury Board shall be the governing body for the Commonwealth; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A written internal credit review justifying the creditworthiness of the issuing corporation is prepared in advance and made part of the purchase file. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINVESTMENT OF FUNDS OF COMMONWEALTH, POLITICAL SUBDIVISIONS, AND PUBLIC BODIES\nIN “PRIME QUALITY” COMMERCIAL PAPER (\u00a7 2.2-4502)\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 “prime quality” commercial paper, with a maturity\nof 270 days or less, of issuing corporations organized under the laws of the\nUnited States, or of any state thereof including paper issued by banks and bank\nholding companies. “Prime quality” means that the paper has received\nat least two of the following ratings: (i) at least prime 1 by Moody’s\nInvestors Service, Inc.; (ii) at least A1 by Standard & Poor’s; or\n(iii) at least F1 by Fitch Ratings, Inc., provided that at the time of any such\ninvestment:\n\n 1. The issuing corporation, or its guarantor, has a net worth of at least $50\n million; and\n\n 2. The net income of the issuing corporation, or its guarantor, has averaged\n $3 million per year for the previous five years; and\n\n 3. All existing senior bonded indebtedness of the issuer, or its guarantor,\n has received at least two of the following ratings: (i) at least A by\n Moody’s Investors Service, Inc.; (ii) at least A by Standard &\n Poor’s; or (iii) at least A by Fitch Ratings, Inc.\n \t\t\t\tNot more than 35 percent of the total funds available for investment may\n be invested in commercial paper, and not more than five percent of the total\n funds available for investment may be invested in commercial paper of any one\n issuing corporation.\n\nB. Notwithstanding subsection A, the Commonwealth, municipal corporations, and\nother political subdivisions and public bodies of the Commonwealth may invest\nany and all moneys belonging to them or within their control, except for sinking\nfunds, in commercial paper other than “prime quality” commercial\npaper as defined in this section, provided that:\n\n 1. Prior written approval is obtained from the governing board, committee, or\n other entity that determines investment policy. The Treasury Board shall be\n the governing body for the Commonwealth; and\n\n 2. A written internal credit review justifying the creditworthiness of the\n issuing corporation is prepared in advance and made part of the purchase file.\n\nHISTORY: 1973, c. 232, \u00a7 2.1-328.1; 1974, c. 295; 1976, c. 665; 1986, c. 170;\n1987, c. 73; 1988, c. 834; 1992, c. 769; 2001, c. 844; 2020, c. 333.","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}}