                                 CODE OF VIRGINIA

HOUSING BONDS TO BE LEGAL INVESTMENTS, LEGAL SECURITY AND NEGOTIABLE (§ 36-34)

The Commonwealth and all public officers, municipal corporations, political
subdivisions (other than housing authorities), and public bodies, all banks,
bankers, trust companies, savings banks and institutions, building and loan
associations, savings and loan associations, investment companies and other
persons carrying on a banking business, all insurance companies, except domestic
life insurance companies may legally invest any sinking funds, moneys or other
funds belonging to them or within their control in any bonds or other
obligations issued by a housing authority pursuant to the Housing Authorities
Law, or issued by any public housing authority or agency in the United States,
when such bonds or other obligations are secured by a pledge of annual
contributions to be paid by the United States government or any agency thereof,
and such bonds and other obligations shall be authorized security for all public
deposits and shall be fully negotiable in this Commonwealth; it being the
purpose of this act to authorize any persons, firms, corporations, associations,
political subdivisions, bodies and officers, public or private, to use any funds
owned or controlled by them, including (but not limited to) sinking, insurance,
investment, retirement, compensation, pension funds, and funds held on deposit,
for the purchase of any such bonds or other obligations and that any such bonds
or other obligations shall be authorized security for all public deposits and
shall be fully negotiable in this Commonwealth; provided, however, that nothing
contained in this section with regard to legal investments shall be construed as
relieving any person, firm or corporation from any duty of exercising reasonable
care in selecting securities.

HISTORY: 1942, p. 404; Michie Code 1942, § 3145(25).