                                 CODE OF VIRGINIA

DEPOSIT AND INVESTMENT OF MONEYS OF HDA (§ 36-55.44)

A. All moneys of HDA except as otherwise authorized or provided in this chapter
shall be deposited as soon as practicable in a separate account or accounts in
banks or trust companies organized under the laws of the Commonwealth, in
national banking associations, in federal home loan banks, or to the extent then
permitted by law, in savings institutions organized under the laws of the
Commonwealth of Virginia or the United States. The moneys in such accounts shall
be paid out on checks, drafts payable on demand, electronic wire transfers, or
other means authorized by HDA. Each payment shall be approved by the executive
director or such other officers or employees of HDA as HDA shall authorize.
Deposits of such moneys shall, if required by HDA, be secured as it shall
prescribe, and all banks and trust companies are authorized to give such
security for such deposits.

B. Unless otherwise limited by contract with the holders of any of its notes or
bonds or with any other parties making loans to HDA, any moneys of HDA and any
moneys held in trust or otherwise for the payment of such notes, bonds or loans
may be invested in (i) obligations or securities which are considered lawful
investments for fiduciaries, both individual and corporation, as set forth in
&#xA7; 2.2-4519, (ii) any investments and deposits authorized by Chapter 45
(&#xA7; 2.2-4500 et seq.) of Title 2.2, and (iii) any other investments which
are permitted pursuant to subsection C for moneys held under any bond resolution
or trust indenture of the Authority and which, when acquired by HDA, have, or
are general obligations of issuers who have, long-term ratings of at least AA or
Aa or the highest short-term ratings, as applicable, by two rating agencies, one
of which shall be Moody&#8217;s Investors Service, Inc., or Standard &amp;
Poor&#8217;s Ratings Group or any successor thereto.

C. In addition to the authorization in subsection B and regardless of any other
provisions of law which would otherwise have the effect of limiting the powers
set forth in this subsection, HDA shall have power to contract with the holders
of any of its notes or bonds and with any other parties making loans to HDA as
to the custody, collection, securing, investment and payment of any moneys of
HDA and of any moneys held in trust or otherwise for the payment of such notes,
bonds or loans, and to carry out such contracts. Unless otherwise specified in
such contracts, moneys held in trust or otherwise for the payment of notes,
bonds or loans or in any way to secure notes, bonds or loans and deposits of
such moneys may be secured in the same manner as set forth in subsection A.

D. Whenever investments are made in accordance with this section, no
commissioner or employee of HDA shall be liable for any loss therefrom in the
absence of negligence, malfeasance, misfeasance, or nonfeasance on his part.

HISTORY: 1972, c. 830; 1975, c. 536; 1982, cc. 231, 235; 1993, c. 224; 1996, c.
77; 1998, c. 442.