                                 CODE OF VIRGINIA

LOCAL GOVERNMENT INVESTMENT POOL CREATED (§ 2.2-4602)

A. A local government investment pool is created, consisting of the aggregate of
all funds from local officials handling public funds that are placed in the
custody of the State Treasurer for investment and reinvestment as provided in
this chapter.

B. The Treasury Board or its designee shall administer the local government
investment pool on behalf of the participating local officials subject to
regulations and guidelines adopted by the Treasury Board.

C. The Treasury Board or its designee shall invest moneys in the local
government investment pool with the degree of judgment and care, under
circumstances then prevailing, which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived. Specifically, the types of
authorized investments for local government investment pool assets shall be
limited to those set forth for local officials in Chapter 45 (&#xA7; 2.2-4500 et
seq.) of this title.

D. A separate account for each participant in the fund shall be kept to record
individual transactions and totals of all investments belonging to each
participant. A monthly report showing the changes in investments made during the
preceding month shall be furnished to each participant having a beneficial
interest in the local government investment pool. Details of any investment
transaction shall be furnished to any participant upon request.

E. The Treasury Board or its designee shall administer and handle the accounts
in the same manner as bond and sinking fund trust accounts.

F. The principal and accrued income, and any part thereof, of each and every
account maintained for a participant in the local government investment pool
shall be subject to payment at any time from the local government investment
pool upon request, subject to applicable regulations and guidelines. Accumulated
income shall be remitted or credited to each participant at least quarterly.

G. Except as provided in this section, all instruments of title of all
investments of the local government investment pool shall remain in the custody
of the State Treasurer. The State Treasurer may deposit with one or more fiscal
agents or banks, those instruments of title he considers advisable, to be held
in safekeeping by the agents or banks for collection of the principal and
interest or other income, or of the proceeds of sale. The State Treasurer shall
collect the principal and interest or other income from investments of the
investment pool, the instruments of title to which are in his custody, when due
and payable.

HISTORY: 1980, c. 538, § 2.1-234.8; 1984, c. 320; 1988, c. 834; 2001, c. 844.