                                 CODE OF VIRGINIA

LEGAL INVESTMENTS FOR OTHER PUBLIC FUNDS (§ 2.2-4501)

A. 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 the following:

   1. Stocks, bonds, notes, and other evidences of indebtedness of the
   Commonwealth and those 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. Stocks, bonds, notes and other evidences of indebtedness of any state of
   the United States upon which there is no default and upon which there has been
   no default for more than 90 days, provided that within the 20 fiscal years
   next preceding the making of such investment, such state has not been in
   default for more than 90 days in the payment of any part of principal or
   interest of any debt authorized by the legislature of such state to be
   contracted.

   4. Stocks, bonds, notes and other evidences of indebtedness of any county,
   city, town, district, authority or other public body in the Commonwealth upon
   which there is no default, provided that if the principal and interest be
   payable from revenues or tolls and the project has not been completed, or if
   completed, has not established an operating record of net earnings available
   for payment of principal and interest equal to estimated requirements for that
   purpose according to the terms of the issue, the standards of judgment and
   care required in Article 9 (&#xA7; 64.2-780 et seq.) of Chapter 7 of Title
   64.2, without reference to this section, shall apply.
   				In any case in which an authority, having an established record of net
   earnings available for payment of principal and interest equal to estimated
   requirements for that purpose according to the terms of the issue, issues
   additional evidences of indebtedness for the purposes of acquiring or
   constructing additional facilities of the same general character that it is
   then operating, such additional evidences of indebtedness shall be governed by
   the provisions of this section without limitation.

   5. Legally authorized stocks, bonds, notes and other evidences of indebtedness
   of any city, county, town, or district situated in any one of the states of
   the United States upon which there is no default and upon which there has been
   no default for more than 90 days, provided that (i) within the 20 fiscal years
   next preceding the making of such investment, such city, county, town, or
   district has not been in default for more than 90 days in the payment of any
   part of principal or interest of any stock, bond, note or other evidence of
   indebtedness issued by it; (ii) such city, county, town, or district shall
   have been in continuous existence for at least 20 years; (iii) such city,
   county, town, or district has a population, as shown by the federal census
   next preceding the making of such investment, of not less than 25,000
   inhabitants; (iv) the stocks, bonds, notes or other evidences of indebtedness
   in which such investment is made are the direct legal obligations of the city,
   county, town, or district issuing the same; (v) the city, county, town, or
   district has power to levy taxes on the taxable real property therein for the
   payment of such obligations without limitation of rate or amount; and (vi) the
   net indebtedness of such city, county, town, or district (including the issue
   in which such investment is made), after deducting the amount of its bonds
   issued for self-sustaining public utilities, does not exceed 10 percent of the
   value of the taxable property in such city, county, town, or district, to be
   ascertained by the valuation of such property therein for the assessment of
   taxes next preceding the making of such investment.

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

B. This section shall not apply to funds authorized by law to be invested by the
Virginia Retirement System or to deferred compensation plan funds to be invested
pursuant to &#xA7; 51.1-601 or to funds contributed by a locality to a pension
program for the benefit of any volunteer fire department or volunteer emergency
medical services agency established pursuant to &#xA7; 15.2-955.

C. Investments made prior to July 1, 1991, pursuant to &#xA7; 51.1-601 are
ratified and deemed valid to the extent that such investments were made in
conformity with the standards set forth in Chapter 6 (&#xA7; 51.1-600 et seq.)
of Title 51.1.

HISTORY: 1956, c. 184, § 2-298; 1966, c. 677, § 2.1-328; 1980, c. 596; 1988,
c. 834; 1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844;
2007, c. 67; 2008, c. 295; 2015, cc. 502, 503.