                                 CODE OF VIRGINIA

PROCEDURE FOR PAYMENT OF LOSSES BY DEDICATED METHOD (§ 2.2-4404)

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 of
all uninsured public deposits using the following procedures:

1. The Treasury Board shall ascertain the amount of uninsured public deposits
held by the defaulting depository with the cooperation of the Commissioner of
Financial Institutions, the receiver appointed for such depository or by any
other means available.

2. The amount of such uninsured public deposits ascertained as provided in
subdivision 1, plus any costs associated with liquidation of the eligible
collateral of the defaulting depository, shall be assessed by the Treasury Board
against the defaulting depository. The State Treasurer shall promptly take
possession of the eligible collateral deposited by such depository with the
depository&#8217;s escrow agent, as is necessary to satisfy the assessment of
the Treasury Board and shall liquidate the same and turn over the net proceeds
to the Treasury Board.

3. Upon receipt from the State Treasurer of the eligible collateral liquidated,
the Treasury Board shall reimburse the public depositors from the proceeds of
the collateral up to the extent of the depository&#8217;s deposit liability to
them, net of any applicable deposit insurance.

HISTORY: 1984, c. 135, § 2.1-363.1; 2001, c. 844; 2009, c. 64; 2010, cc. 640,
674.