                                 CODE OF VIRGINIA

DEPOSIT OF TRUST FUNDS NOT AN INVESTMENT; AUTHORIZED DEPOSITS (§ 51.1-124.33)

The Board may authorize the deposit of trust funds in interest-bearing time
deposits and certificates of deposit of national banks located within the
Commonwealth, of banks organized pursuant to Chapter 8 (§ 6.2-800 et seq.) of
Title 6.2, of savings institutions which are under state supervision, and of
federal associations located in this Commonwealth and organized under the laws
of the United States and under federal supervision and federally insured. Such
deposits shall not be considered the investment of trust funds for the purposes
of this chapter. Deposit of the funds in demand and time deposits and in
certificates of deposit of national banks located within this Commonwealth and
of banks organized pursuant to the Virginia Banking Act is hereby authorized,
provided that the deposits are secured as provided by law and that no deposit is
made for any one period in excess of one year. Deposit of trust funds in savings
accounts and certificates of savings institutions which are under state
supervision and of federal associations located in this Commonwealth and
organized under the laws of the United States and under federal supervision is
hereby authorized. Such deposits shall not exceed the amount insured by the
Federal Deposit Insurance Corporation or other federal insurance agency, unless
deposits in excess of the amount insured are fully collateralized by eligible
collateral as defined in § 2.2-4401. No such deposit shall be made for any one
period in excess of one year.

HISTORY: 1980, c. 596, § 51-111.24:4; 1990, cc. 3, 832, § 51.1-122; 1994, cc.
4, 85.