                                 CODE OF VIRGINIA

LEGAL INVESTMENTS FOR PUBLIC SINKING FUNDS (§ 2.2-4500)

The Commonwealth, all public officers, municipal corporations, other political
subdivisions and all other public bodies of the Commonwealth may invest any
sinking funds belonging to them or within their control in the following
securities:

1. Bonds, notes and other evidences of indebtedness of the Commonwealth, and
securities unconditionally guaranteed as to the payment of principal and
interest by the Commonwealth.

2. 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.

3. Bonds, notes and other evidences of indebtedness of any county, city, town,
district, authority or other public body of the Commonwealth upon which there is
no default; provided, that such bonds, notes and other evidences of indebtedness
of any county, city, town, district, authority or other public body are either
direct legal obligations of, or those unconditionally guaranteed as to the
payment of principal and interest by the county, city, town, district, authority
or other public body in question; and revenue bonds issued by agencies or
authorities of the Commonwealth or its political subdivisions upon which there
is no default.

4. Bonds and other obligations issued, guaranteed or assumed by the
International Bank for Reconstruction and Development, bonds and other
obligations issued, guaranteed or assumed by the Asian Development Bank and
bonds and other obligations issued, guaranteed or assumed by the African
Development Bank.

5. Savings accounts or time deposits in any bank or savings institution within
the Commonwealth provided the bank or savings institution is approved for the
deposit of other funds of the Commonwealth or other political subdivision of the
Commonwealth.

HISTORY: 1956, c. 184, § 2-297; 1958, c. 102; 1966, c. 677, § 2.1-327; 1970,
c. 75; 1974, c. 288; 1986, c. 270; 1988, cc. 526, 834; 1996, cc. 77, 508; 2001,
c. 844.