{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1089.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1089.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1089.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1089.html"}],"law_id":71432,"edition_id":1,"section_id":71432,"structure_id":13492,"section_number":"6.2-1089","catch_line":"Funds awaiting investment or distribution","history":"1984, c. 303, \u00a7 6.1-195.86; 1990, c. 3; 1992, c. 810; 2010, c. 794.","full_text":"A\n\nFunds and assets held in a fiduciary capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the trust account.B\n\nFunds and assets held in trust by an association, including managing agency accounts, awaiting investment or distribution, unless prohibited by the governing instrument, may be deposited in other departments of the association, provided that the association shall first set aside under the sole control of the trust department, as collateral security:1\n\nDirect obligations of the United States, or other obligations fully guaranteed by the United States as to principal and interest;2\n\nReadily 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 securities as may be authorized by the Commissioner.\n\t\t\t\tSuch collateral securities, or securities substituted therefor as collateral, shall at all times be at least equal in face value to the amount of trust funds so deposited, but such security shall not be required to the extent that the funds so deposited are insured by the Federal Deposit Insurance Corporation or other federal insurance agency. The requirements of this subsection are met when qualifying assets of the association are pledged in such manner as to fully secure all trust account funds deposited by the trust department of the association in another department of the association.C\n\nAny funds held by an association as fiduciary awaiting investment or distribution and deposited in other departments of the association shall be made productive.D\n\nIn the event of the failure or liquidation of an association, the owners of the funds held in trust and deposited in another department of the association shall have a first lien on the securities set apart as collateral for such funds, in addition to any other claim that such owners may have against the association.","order_by":null,"text":{"0":{"id":257520,"text":"Funds and assets held in a fiduciary capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the trust account.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":257521,"text":"Funds and assets held in trust by an association, including managing agency accounts, awaiting investment or distribution, unless prohibited by the governing instrument, may be deposited in other departments of the association, provided that the association shall first set aside under the sole control of the trust department, as collateral security:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":257522,"text":"Direct obligations of the United States, or other obligations fully guaranteed by the United States as to principal and interest;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":257523,"text":"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":257524,"text":"Other readily marketable securities as may be authorized by the Commissioner.\n\t\t\t\tSuch collateral securities, or securities substituted therefor as collateral, shall at all times be at least equal in face value to the amount of trust funds so deposited, but such security shall not be required to the extent that the funds so deposited are insured by the Federal Deposit Insurance Corporation or other federal insurance agency. The requirements of this subsection are met when qualifying assets of the association are pledged in such manner as to fully secure all trust account funds deposited by the trust department of the association in another department of the association.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":257525,"text":"Any funds held by an association as fiduciary awaiting investment or distribution and deposited in other departments of the association shall be made productive.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"6":{"id":257526,"text":"In the event of the failure or liquidation of an association, the owners of the funds held in trust and deposited in another department of the association shall have a first lien on the securities set apart as collateral for such funds, in addition to any other claim that such owners may have against the association.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13492,"edition_id":1,"name":"Trust Powers of Savings Institutions","identifier":"6","label":"article","depth":4,"order_by":1,"parent_id":13001,"metadata":{},"date_created":"2026-06-26 03:45:02","date_modified":"2026-06-26 03:45:02","permalink":{"id":264023,"object_type":"structure","relational_id":13492,"identifier":"6","token":"6.2\/II\/10\/6","url":"\/6.2\/II\/10\/6\/","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":74058,"structure_id":13492,"section_number":"6.2-1081","catch_line":"Definitions","url":"\/6.2-1081\/","token":"6.2\/II\/10\/6\/6.2-1081","metadata":false},{"id":85239,"structure_id":13492,"section_number":"6.2-1082","catch_line":"Applications for permission to offer trust services","url":"\/6.2-1082\/","token":"6.2\/II\/10\/6\/6.2-1082","metadata":false},{"id":54455,"structure_id":13492,"section_number":"6.2-1083","catch_line":"Commission to issue certificate; powers of associations authorized to offer trust services","url":"\/6.2-1083\/","token":"6.2\/II\/10\/6\/6.2-1083","metadata":false},{"id":54639,"structure_id":13492,"section_number":"6.2-1084","catch_line":"Continuation of trust powers in the event of consolidation or merger of two or more associations","url":"\/6.2-1084\/","token":"6.2\/II\/10\/6\/6.2-1084","metadata":false},{"id":79631,"structure_id":13492,"section_number":"6.2-1085","catch_line":"When security not required","url":"\/6.2-1085\/","token":"6.2\/II\/10\/6\/6.2-1085","metadata":false},{"id":64036,"structure_id":13492,"section_number":"6.2-1086","catch_line":"Association's operation and supervision of trust department","url":"\/6.2-1086\/","token":"6.2\/II\/10\/6\/6.2-1086","metadata":false},{"id":54952,"structure_id":13492,"section_number":"6.2-1087","catch_line":"Books and accounts","url":"\/6.2-1087\/","token":"6.2\/II\/10\/6\/6.2-1087","metadata":false},{"id":67325,"structure_id":13492,"section_number":"6.2-1088","catch_line":"Investment of funds and assets held as fiduciary","url":"\/6.2-1088\/","token":"6.2\/II\/10\/6\/6.2-1088","metadata":false},{"id":71432,"structure_id":13492,"section_number":"6.2-1089","catch_line":"Funds awaiting investment or distribution","url":"\/6.2-1089\/","token":"6.2\/II\/10\/6\/6.2-1089","metadata":false},{"id":68351,"structure_id":13492,"section_number":"6.2-1090","catch_line":"Dealings with self or affiliates","url":"\/6.2-1090\/","token":"6.2\/II\/10\/6\/6.2-1090","metadata":false},{"id":68482,"structure_id":13492,"section_number":"6.2-1091","catch_line":"Voting of financial institution stock held by association as fiduciary; when association disqualified from voting","url":"\/6.2-1091\/","token":"6.2\/II\/10\/6\/6.2-1091","metadata":false},{"id":60816,"structure_id":13492,"section_number":"6.2-1092","catch_line":"Transactions between trust accounts","url":"\/6.2-1092\/","token":"6.2\/II\/10\/6\/6.2-1092","metadata":false},{"id":86273,"structure_id":13492,"section_number":"6.2-1093","catch_line":"Custody of assets and investments held in trust","url":"\/6.2-1093\/","token":"6.2\/II\/10\/6\/6.2-1093","metadata":false},{"id":64599,"structure_id":13492,"section_number":"6.2-1094","catch_line":"Establishment of common trust funds and collective investment funds; court accountings","url":"\/6.2-1094\/","token":"6.2\/II\/10\/6\/6.2-1094","metadata":false},{"id":82368,"structure_id":13492,"section_number":"6.2-1095","catch_line":"Compensation of association acting as fiduciary","url":"\/6.2-1095\/","token":"6.2\/II\/10\/6\/6.2-1095","metadata":false},{"id":86157,"structure_id":13492,"section_number":"6.2-1096","catch_line":"Surrender of trust powers by association","url":"\/6.2-1096\/","token":"6.2\/II\/10\/6\/6.2-1096","metadata":false},{"id":79251,"structure_id":13492,"section_number":"6.2-1097","catch_line":"Effect on trust accounts of appointment of receiver for association or of voluntary dissolution of association","url":"\/6.2-1097\/","token":"6.2\/II\/10\/6\/6.2-1097","metadata":false},{"id":55409,"structure_id":13492,"section_number":"6.2-1098","catch_line":"Revocation of trust powers","url":"\/6.2-1098\/","token":"6.2\/II\/10\/6\/6.2-1098","metadata":false},{"id":71645,"structure_id":13492,"section_number":"6.2-1099","catch_line":"Trust powers of state savings banks","url":"\/6.2-1099\/","token":"6.2\/II\/10\/6\/6.2-1099","metadata":false}],"previous_section":{"id":67325,"structure_id":13492,"section_number":"6.2-1088","catch_line":"Investment of funds and assets held as fiduciary","url":"\/6.2-1088\/","token":"6.2\/II\/10\/6\/6.2-1088","metadata":false},"next_section":{"id":68351,"structure_id":13492,"section_number":"6.2-1090","catch_line":"Dealings with self or affiliates","url":"\/6.2-1090\/","token":"6.2\/II\/10\/6\/6.2-1090","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1089\/","history_text":"

This law was first created in 1984. The record of its establishment is cataloged in chapter 303 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 1984 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1990, chapter 3; in 1992, chapter 810; in 2010, chapter 794<\/a>.<\/p>","references":[{"id":68351,"section_number":"6.2-1090","catch_line":"Dealings with self or affiliates","order_by":null,"url":"\/6.2-1090\/"}],"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":264057,"object_type":"law","relational_id":71432,"identifier":"6.2-1089","token":"6.2\/II\/10\/6\/6.2-1089","url":"\/6.2-1089\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1089\/","token":"6.2\/II\/10\/6\/6.2-1089","dublin_core":{"Title":"Funds awaiting investment or distribution","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1089","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Funds and assets<\/span> held in a fiduciary<\/span> capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the trust account<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Funds and assets<\/span> held in trust by an association, including managing agency accounts, awaiting investment or distribution, unless prohibited by the governing instrument<\/span>, may be deposited in other departments of the association, provided that the association shall first set aside under the sole control of the trust department<\/span>, as collateral<\/span> security: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Direct obligations of the United States, or other obligations fully guaranteed by the United States as to principal and interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> 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 securities as may be authorized by the Commissioner<\/span>.\n\t\t\t\tSuch collateral<\/span> securities, or securities substituted therefor as collateral<\/span>, shall at all times be at least equal in face value to the amount of trust funds so deposited, but such security shall not be required to the extent that the funds so deposited are insured by the Federal Deposit Insurance Corporation or other federal insurance agency. The requirements of this subsection are met when qualifying assets<\/span> of the association are pledged in such manner as to fully secure all trust account<\/span> funds deposited by the trust department<\/span> of the association in another department of the association. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any funds held by an association as fiduciary<\/span> awaiting investment or distribution and deposited in other departments of the association shall be made productive. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In the event of the failure or liquidation<\/span> of an association, the owners of the funds held in trust and deposited in another department of the association shall have a first lien<\/span> on the securities set apart as collateral<\/span> for such funds, in addition to any other claim that such owners may have against the association. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFUNDS AWAITING INVESTMENT OR DISTRIBUTION (\u00a7 6.2-1089)\n\nA. Funds and assets held in a fiduciary capacity by an association awaiting\ninvestment or distribution shall not be held uninvested or undistributed any\nlonger than is reasonable for the proper management of the trust account.\n\nB. Funds and assets held in trust by an association, including managing agency\naccounts, awaiting investment or distribution, unless prohibited by the\ngoverning instrument, may be deposited in other departments of the association,\nprovided that the association shall first set aside under the sole control of\nthe trust department, as collateral security:\n\n 1. Direct obligations of the United States, or other obligations fully\n guaranteed by the United States as to principal and interest;\n\n 2. 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 securities as may be authorized by the\n Commissioner.\n \t\t\t\tSuch collateral securities, or securities substituted therefor as\n collateral, shall at all times be at least equal in face value to the amount\n of trust funds so deposited, but such security shall not be required to the\n extent that the funds so deposited are insured by the Federal Deposit\n Insurance Corporation or other federal insurance agency. The requirements of\n this subsection are met when qualifying assets of the association are pledged\n in such manner as to fully secure all trust account funds deposited by the\n trust department of the association in another department of the association.\n\nC. Any funds held by an association as fiduciary awaiting investment or\ndistribution and deposited in other departments of the association shall be made\nproductive.\n\nD. In the event of the failure or liquidation of an association, the owners of\nthe funds held in trust and deposited in another department of the association\nshall have a first lien on the securities set apart as collateral for such\nfunds, in addition to any other claim that such owners may have against the\nassociation.\n\nHISTORY: 1984, c. 303, \u00a7 6.1-195.86; 1990, c. 3; 1992, c. 810; 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}}