                                 CODE OF VIRGINIA

(REPEALED EFFECTIVE JULY 1, 2026) TYPES OF PERMISSIBLE INVESTMENTS. (§
6.2-1919)

A. Except to the extent otherwise limited by the Commission pursuant to §
6.2-1918, the following investments are permissible under § 6.2-1918:

   1. Cash, a certificate of deposit, or senior debt obligation of an insured
   depository institution, as defined in section 3 of the Federal Deposit
   Insurance Act (12 U.S.C. &#xA7; 1813).

   2. A banker&#8217;s acceptance or bill of exchange that is eligible for
   purchase upon endorsement by a member bank of the Federal Reserve System and
   is eligible for purchase by a Federal Reserve Bank.

   3. An investment bearing a rating of one of the three highest grades, as
   defined by a nationally recognized organization that rates securities.

   4. An investment security that is an obligation of the United States or a
   department, agency, or instrumentality thereof; an investment in an obligation
   that is guaranteed fully as to principal and interest by the United States; or
   an investment in an obligation of a state or a governmental subdivision,
   agency, or instrumentality thereof.

   5. Receivables that are payable to a licensee from its authorized delegates,
   pursuant to contracts and in the ordinary course of business, that are not
   past due or doubtful of collection. A receivable shall be deemed to be past
   due or doubtful of collection if the money owed to the licensee is not
   remitted within seven business days. However, the aggregate amount of
   receivables under this subdivision from any one person shall not comprise more
   than 10 percent of the licensee&#8217;s total permissible investments.

   6. A share or a certificate issued by an open-end management investment
   company that is registered with the U.S. Securities and Exchange Commission
   under the Investment Companies Act of 1940 (15 U.S.C. &#xA7; 80a-1 et seq.),
   and whose portfolio is restricted by the management company&#8217;s investment
   policy to investments specified in subdivisions 1 through 4.

B. The following investments are permissible under § 6.2-1918, but only to the
extent specified:

   1. An interest-bearing bill, note, bond, or debenture of a person whose equity
   shares are traded on a national securities exchange or on a national
   over-the-counter market, if the aggregate of investments under this
   subdivision does not exceed 20 percent of the total permissible investments of
   a licensee and the licensee does not at one time hold investments under this
   subdivision in any one person aggregating more than 10 percent of the
   licensee&#8217;s total permissible investments;

   2. A share of a person traded on a national securities exchange or a national
   over-the-counter market or a share or a certificate issued by an open-end
   management investment company that is registered with the U.S. Securities and
   Exchange Commission under the Investment Companies Act of 1940 (15 U.S.C.
   &#xA7; 80a-1 et seq.), and whose portfolio is restricted by the management
   company&#8217;s investment policy to shares of a person traded on a national
   securities exchange or a national over-the-counter market, if the aggregate of
   investments under this subdivision does not exceed 20 percent of the total
   permissible investments of a licensee and the licensee does not at one time
   hold investments in any one person aggregating more than 10 percent of the
   licensee&#8217;s total permissible investments;

   3. A demand-borrowing agreement made to a corporation or a subsidiary of a
   corporation whose securities are traded on a national securities exchange if
   the aggregate of the amount of principal and interest outstanding under
   demand-borrowing agreements under this subdivision does not exceed 20 percent
   of the total permissible investments of a licensee and the licensee does not
   at one time hold principal and interest outstanding under demand-borrowing
   agreements under this subdivision with any one person aggregating more than 10
   percent of the licensee&#8217;s total permissible investments; and

   4. Any other investment the Commission designates, to the extent specified by
   the Commission.

C. The aggregate of investments under subsection B may not exceed 50 percent of
the total permissible investments of a licensee calculated in accordance with
&#xA7; 6.2-1918.

HISTORY: 2009, c. 346, § 6.1-378.8; 2010, c. 794; 2014, c. 454; 2025, c. 214.