                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) MAINTENANCE OF PERMISSIBLE INVESTMENTS (§ 6.2-1952)

A. A licensee shall maintain at all times permissible investments that have a
market value computed in accordance with generally accepted accounting
principles of not less than the aggregate amount of all of its outstanding money
transmission obligations in all states.

B. Except for permissible investments enumerated in subsection A of &#xA7;
6.2-1953, the Commission, with respect to any licensee, may by regulation or
order limit the extent to which a specific investment within a class of
permissible investments may be considered a permissible investment if the
specific investment represents undue risk to customers that is not reflected in
the market value of the investment.

C. Permissible investments, even if commingled with other assets of the
licensee, shall be deemed to be held in trust for the benefit of the purchasers
and holders of the licensee&#8217;s outstanding money transmission obligations
in the event of insolvency, the filing of a petition by or against the licensee
under the United States Bankruptcy Code (11 U.S.C. &#xA7; 101 et seq.) for
bankruptcy or reorganization, the filing of a petition by or against the
licensee for receivership, the commencement of any other judicial or
administrative proceeding for its dissolution or reorganization, or an action by
a creditor against the licensee who is not a beneficiary of this statutory
trust. No permissible investments impressed with a trust pursuant to this
subsection shall be subject to attachment, levy of execution, or sequestration
by order of any court, except when for a beneficiary of this statutory trust.

D. Upon the establishment of a statutory trust in accordance with subsection C
or when any funds are drawn on a letter of credit pursuant to subdivision A 4 of
&#xA7; 6.2-1953, the Commission shall notify the applicable regulator of each
state in which the licensee is licensed to engage in money transmission, if any,
of the establishment of the trust or the funds drawn on the letter of credit, as
applicable. Notice shall be deemed given if provided pursuant to a multistate
agreement or through NMLS. Funds drawn on a letter of credit, and any other
permissible investments held in trust for the benefit of the purchasers and
holders of the licensee&#8217;s outstanding money transmission obligations,
shall be deemed to be held in trust for the benefit of such purchasers and
holders on a pro rata and equitable basis in accordance with statutes pursuant
to which permissible investments are required to be held in the Commonwealth and
other states, as applicable. Any statutory trust established hereunder shall be
terminated upon extinguishment of all of the licensee&#8217;s outstanding money
transmission obligations.

E. The Commission by regulation or by order may allow other types of investments
that the Commission determines are of sufficient liquidity and quality to be a
permissible investment. The Commission is authorized to participate in efforts
with other state regulators to determine whether other types of investments are
of sufficient liquidity and quality to be a permissible investment.

HISTORY: 2025, c. 214.