                                 CODE OF VIRGINIA

INVESTMENT OF PROCEEDS PENDING APPLICATION TO AUTHORIZED PURPOSE (§ 22.1-161.5)

Pending the application of the proceeds of any bonds issued under the provisions
of this chapter to the purpose for which such bonds have been issued, all or any
part of such proceeds may be invested, upon resolution of the school board, in
securities that are legal investments under the laws of this Commonwealth for
public sinking funds, which shall mature, or which shall be subject to
redemption by the holder thereof at the option of such holder, not later than
the date on which the moneys will be required to make the payments for which
such moneys have been designated. Any security so purchased as investment of the
proceeds of such bonds shall be deemed at all times to be a part of such
proceeds, and the interest accruing thereon and any profit realized from such
investment shall be credited to such proceeds. Any security so purchased shall
be held by the treasurer or chief financial officer of the county, city or town,
and shall be sold by him upon resolution of the school board directing such
sale, at the best price obtainable, or presented for redemption, whenever it
shall be necessary, as determined by such resolution, in order to provide moneys
to meet the purpose for which the bonds shall have been issued.

HISTORY: 1995, c. 250.