                                 CODE OF VIRGINIA

POWERS OF TREASURY BOARD RELATING TO THE ADMINISTRATION OF LOCAL GOVERNMENT
INVESTMENT POOL (§ 2.2-4605)

A. The Treasury Board shall have power to:

   1. Make and adopt regulations necessary and proper for the efficient
   administration of the local government investment pool hereinafter created,
   including but not limited to:
   				a. Specification of minimum amounts that may be deposited in the local
   government investment pool and minimum periods of time for which deposits
   shall be retained in such pool;
   				b. Creation of a reserve for losses;
   				c. Payment of administrative expenses from the earnings of such pool;
   				d. Distribution of the earnings in excess of such expenses, or allocation
   of losses, to the several participants in a manner that equitably reflects the
   differing amounts of their respective investments and the differing periods of
   time for which such amounts were in the custody of the pool; and
   				e. Procedures for the deposit and withdrawal of funds.

   2. Develop guidelines for the protection of the local government investment
   pool in the event of default in the payment of principal or interest or other
   income of any investment of such pool, such guidelines to include the
   following procedures:
   				a. Instituting the proper proceedings to collect the matured principal or
   interest or other income;
   				b. Accepting for exchange purposes refunding bonds or other evidences of
   indebtedness at appropriate interest rates;
   				c. Making compromises, adjustments, or disposition of matured principal or
   interest or other income as considered advisable for the purpose of protecting
   the moneys invested;
   				d. Making compromises or adjustments as to future payments of principal or
   interest or other income considered advisable for the purpose of protecting
   the moneys invested.

   3. Formulate policies for the investment and reinvestment of funds in the
   local government investment pool and the acquisition, retention, management,
   and disposition of investments of the investment pool.

B. The Treasury Board may delegate the administrative aspects of operating under
this chapter to the State Treasurer, subject to the regulations and guidelines
adopted by the Treasury Board.

C. Such regulations and guidelines may be adopted without complying with the
Administrative Process Act (&#xA7; 2.2-4000 et seq.) provided that input is
solicited from local officials handling public funds. Such input requires only
that notice and an opportunity to submit written comments be given.

HISTORY: 1980, c. 538, § 2.1-234.7; 2001, c. 844.