{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1005.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1005.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1005.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1005.html"}],"law_id":86464,"edition_id":1,"section_id":86464,"structure_id":14860,"section_number":"6.2-1005","catch_line":"Deposit or other use of trust funds","history":"Code 1950, \u00a7 6-99; 1966, c. 584, \u00a7 6.1-21; 1992, c. 810; 1993, c. 432; 1994, c. 7; 2010, c. 794.","full_text":"A\n\nFunds received or held in the trust department of a bank or by a trust company awaiting investment or distribution shall not be used by the bank or trust company in the conduct of its business.B\n\nNotwithstanding subsection A, such funds may be deposited by a bank in its commercial or savings department to the credit of its trust department, if the bank first delivers to the trust department, as collateral security therefor, securities of any of the following classes:1\n\nBonds, notes, or certificates of indebtedness of the United States;2\n\nOther readily marketable securities of the classes in which fiduciaries are authorized or permitted to invest trust funds, as set forth in § 64.2-1502; or3\n\nOther readily marketable bonds, notes, or debentures, commonly known as investment securities, meeting the following requirements:\n\t\t\t\ta. That the issue be of a sufficiently large total to make marketability possible;\n\t\t\t\tb. Such a public distribution of the securities must have been provided for or made in a manner to protect or insure the marketability of the issue; and\n\t\t\t\tc. That the trust agreement under which the security is issued provides for a trustee independent of the obligor, which trustee must be a trust institution.C\n\nThe securities deposited as collateral pursuant to subsection B shall be owned by the bank and shall at all times be at least equal in market value to the amount of trust funds so used in the conduct of the business of the bank less such amount thereof as shall be insured by the Federal Deposit Insurance Corporation under existing or future federal law.D\n\nIn the event of the failure or liquidation of such bank, the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.","order_by":null,"text":{"0":{"id":309694,"text":"Funds received or held in the trust department of a bank or by a trust company awaiting investment or distribution shall not be used by the bank or trust company in the conduct of its business.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":309695,"text":"Notwithstanding subsection A, such funds may be deposited by a bank in its commercial or savings department to the credit of its trust department, if the bank first delivers to the trust department, as collateral security therefor, securities of any of the following classes:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":309696,"text":"Bonds, notes, or certificates of indebtedness of the United States;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":309697,"text":"Other readily marketable securities of the classes in which fiduciaries are authorized or permitted to invest trust funds, as set forth in § 64.2-1502; or","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":309698,"text":"Other readily marketable bonds, notes, or debentures, commonly known as investment securities, meeting the following requirements:\n\t\t\t\ta. That the issue be of a sufficiently large total to make marketability possible;\n\t\t\t\tb. Such a public distribution of the securities must have been provided for or made in a manner to protect or insure the marketability of the issue; and\n\t\t\t\tc. That the trust agreement under which the security is issued provides for a trustee independent of the obligor, which trustee must be a trust institution.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":309699,"text":"The securities deposited as collateral pursuant to subsection B shall be owned by the bank and shall at all times be at least equal in market value to the amount of trust funds so used in the conduct of the business of the bank less such amount thereof as shall be insured by the Federal Deposit Insurance Corporation under existing or future federal law.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"6":{"id":309700,"text":"In the event of the failure or liquidation of such bank, the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":14860,"edition_id":1,"name":"Trust Powers and Trust Business","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13001,"metadata":{},"date_created":"2026-06-26 03:50:27","date_modified":"2026-06-26 03:50:27","permalink":{"id":263689,"object_type":"structure","relational_id":14860,"identifier":"1","token":"6.2\/II\/10\/1","url":"\/6.2\/II\/10\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13001,"edition_id":1,"name":"Entities Conducting Trust Business","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263687,"object_type":"structure","relational_id":13001,"identifier":"10","token":"6.2\/II\/10","url":"\/6.2\/II\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":61391,"structure_id":14860,"section_number":"6.2-1000","catch_line":"Definitions","url":"\/6.2-1000\/","token":"6.2\/II\/10\/1\/6.2-1000","metadata":false},{"id":62570,"structure_id":14860,"section_number":"6.2-1001","catch_line":"Entities authorized to engage in trust business","url":"\/6.2-1001\/","token":"6.2\/II\/10\/1\/6.2-1001","metadata":false},{"id":58739,"structure_id":14860,"section_number":"6.2-1002","catch_line":"Powers of trust institutions","url":"\/6.2-1002\/","token":"6.2\/II\/10\/1\/6.2-1002","metadata":false},{"id":75287,"structure_id":14860,"section_number":"6.2-1003","catch_line":"When security not required; payment of probate taxes and fees","url":"\/6.2-1003\/","token":"6.2\/II\/10\/1\/6.2-1003","metadata":false},{"id":63080,"structure_id":14860,"section_number":"6.2-1004","catch_line":"Who may take oath for corporate fiduciary","url":"\/6.2-1004\/","token":"6.2\/II\/10\/1\/6.2-1004","metadata":false},{"id":86464,"structure_id":14860,"section_number":"6.2-1005","catch_line":"Deposit or other use of trust funds","url":"\/6.2-1005\/","token":"6.2\/II\/10\/1\/6.2-1005","metadata":false},{"id":63490,"structure_id":14860,"section_number":"6.2-1006","catch_line":"Custody of trust securities to be kept separate; federal securities and obligations","url":"\/6.2-1006\/","token":"6.2\/II\/10\/1\/6.2-1006","metadata":false},{"id":56787,"structure_id":14860,"section_number":"6.2-1007","catch_line":"Investment of trust funds","url":"\/6.2-1007\/","token":"6.2\/II\/10\/1\/6.2-1007","metadata":false},{"id":75720,"structure_id":14860,"section_number":"6.2-1008","catch_line":"Dealings with self or affiliates","url":"\/6.2-1008\/","token":"6.2\/II\/10\/1\/6.2-1008","metadata":false},{"id":83711,"structure_id":14860,"section_number":"6.2-1009","catch_line":"Common trust and collective investment funds","url":"\/6.2-1009\/","token":"6.2\/II\/10\/1\/6.2-1009","metadata":false},{"id":75450,"structure_id":14860,"section_number":"6.2-1010","catch_line":"Holding stock or other securities as fiduciary","url":"\/6.2-1010\/","token":"6.2\/II\/10\/1\/6.2-1010","metadata":false},{"id":57294,"structure_id":14860,"section_number":"6.2-1011","catch_line":"Voting of bank shares held by trust institution as fiduciary; when disqualified","url":"\/6.2-1011\/","token":"6.2\/II\/10\/1\/6.2-1011","metadata":false},{"id":82343,"structure_id":14860,"section_number":"6.2-1012","catch_line":"Suspension or prohibition of trust institutions","url":"\/6.2-1012\/","token":"6.2\/II\/10\/1\/6.2-1012","metadata":false}],"previous_section":{"id":63080,"structure_id":14860,"section_number":"6.2-1004","catch_line":"Who may take oath for corporate fiduciary","url":"\/6.2-1004\/","token":"6.2\/II\/10\/1\/6.2-1004","metadata":false},"next_section":{"id":63490,"structure_id":14860,"section_number":"6.2-1006","catch_line":"Custody of trust securities to be kept separate; federal securities and obligations","url":"\/6.2-1006\/","token":"6.2\/II\/10\/1\/6.2-1006","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1005\/","history_text":"

The record of this law\u2019s original creation isn\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 1966, chapter 584; in 1992, chapter 810; in 1993, chapter 432; in 1994, chapter 7<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":54139,"section_number":"2.2-4402","catch_line":"Collateral for public deposits","order_by":null,"url":"\/2.2-4402\/"},{"id":82053,"section_number":"2.2-4519","catch_line":"Investment of funds by the Virginia Housing Development Authority and the Virginia Resources Authority","order_by":null,"url":"\/2.2-4519\/"},{"id":82343,"section_number":"6.2-1012","catch_line":"Suspension or prohibition of trust institutions","order_by":null,"url":"\/6.2-1012\/"},{"id":67776,"section_number":"6.2-1057","catch_line":"Deposits held or received by trust subsidiaries or subsidiary bank with affiliate banks","order_by":null,"url":"\/6.2-1057\/"},{"id":83974,"section_number":"6.2-890","catch_line":"Preferences by pledging assets","order_by":null,"url":"\/6.2-890\/"}],"refers_to":[{"id":55439,"section_number":"64.2-1502","catch_line":"In what securities fiduciaries may invest; definitions","order_by":null,"url":"\/64.2-1502\/"}],"permalink":{"id":263711,"object_type":"law","relational_id":86464,"identifier":"6.2-1005","token":"6.2\/II\/10\/1\/6.2-1005","url":"\/6.2-1005\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1005\/","token":"6.2\/II\/10\/1\/6.2-1005","dublin_core":{"Title":"Deposit or other use of trust funds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1005","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Funds received or held in the trust department of a bank or by a trust company<\/span> awaiting investment or distribution shall not be used by the bank or trust company<\/span> in the conduct of its business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding subsection A, such funds may be deposited by a bank in its commercial or savings department to the credit of its trust department, if the bank first delivers to the trust department, as collateral<\/span> security therefor, securities of any of the following classes: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Bonds<\/span>, notes, or certificates of indebtedness of the United States; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Other readily marketable securities of the classes in which fiduciaries are authorized or permitted to invest trust funds, as set forth in § 64.2-1502<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Other readily marketable bonds<\/span>, notes, or debentures, commonly known as investment securities, meeting the following requirements:\n\t\t\t\ta. That the issue<\/span> be of a sufficiently large total to make marketability possible;\n\t\t\t\tb. Such a public distribution of the securities must have been provided for or made in a manner to protect or insure the marketability of the issue<\/span>; and\n\t\t\t\tc. That the trust agreement under which the security is issued provides for a trustee independent of the obligor, which trustee must be a trust institution<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The securities deposited as collateral<\/span> pursuant to subsection B shall be owned by the bank and shall at all times be at least equal in market value to the amount of trust funds so used in the conduct of the business of the bank less such amount thereof as shall be insured by the Federal Deposit Insurance Corporation under existing or future federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In the event of the failure or liquidation<\/span> of such bank, the owners of the funds held in trust for investment shall have a lien<\/span> on the bonds<\/span> or other securities so set apart in addition to their claim against the estate of the bank. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEPOSIT OR OTHER USE OF TRUST FUNDS (\u00a7 6.2-1005)\n\nA. Funds received or held in the trust department of a bank or by a trust\ncompany awaiting investment or distribution shall not be used by the bank or\ntrust company in the conduct of its business.\n\nB. Notwithstanding subsection A, such funds may be deposited by a bank in its\ncommercial or savings department to the credit of its trust department, if the\nbank first delivers to the trust department, as collateral security therefor,\nsecurities of any of the following classes:\n\n 1. Bonds, notes, or certificates of indebtedness of the United States;\n\n 2. Other readily marketable securities of the classes in which fiduciaries are\n authorized or permitted to invest trust funds, as set forth in §\n 64.2-1502; or\n\n 3. Other readily marketable bonds, notes, or debentures, commonly known as\n investment securities, meeting the following requirements:\n \t\t\t\ta. That the issue be of a sufficiently large total to make marketability\n possible;\n \t\t\t\tb. Such a public distribution of the securities must have been provided\n for or made in a manner to protect or insure the marketability of the issue;\n and\n \t\t\t\tc. That the trust agreement under which the security is issued provides\n for a trustee independent of the obligor, which trustee must be a trust\n institution.\n\nC. The securities deposited as collateral pursuant to subsection B shall be\nowned by the bank and shall at all times be at least equal in market value to\nthe amount of trust funds so used in the conduct of the business of the bank\nless such amount thereof as shall be insured by the Federal Deposit Insurance\nCorporation under existing or future federal law.\n\nD. In the event of the failure or liquidation of such bank, the owners of the\nfunds held in trust for investment shall have a lien on the bonds or other\nsecurities so set apart in addition to their claim against the estate of the\nbank.\n\nHISTORY: Code 1950, \u00a7 6-99; 1966, c. 584, \u00a7 6.1-21; 1992, c. 810; 1993, c.\n432; 1994, c. 7; 2010, c. 794.","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}}