                                 CODE OF VIRGINIA

PLACING CERTAIN TRUST ASSETS IN DESIGNATED FINANCIAL INSTITUTIONS; WAIVER OR
REDUCTION OF BOND OF FIDUCIARY (§ 64.2-1413)

A. If the circuit court having jurisdiction of any estate in the process of
administration by any guardian, conservator, curator, executor, administrator,
trustee, receiver, or other fiduciary, determines that the size of the bond
required of the fiduciary would be burdensome or for other cause, the court may
order a portion or all of the personal assets of the estate, as the court deems
proper, to be placed with a designated bank, trust company, or savings
institution, insured by the Federal Deposit Insurance Corporation or other
federal insurance agency and doing business in the Commonwealth, with
consideration being given to any bank, trust company, or savings institution
proposed by the fiduciary. When the original assets are placed with a designated
financial institution, the financial institution shall issue in the name of the
estate and file with the court a receipt for such assets and shall give the
fiduciary a copy of the receipt. The receipt shall acknowledge that:

   1. The original assets received by the financial institution, or the duly
   collected proceeds from such assets, and all interest, dividends, principal,
   and other indebtedness subsequently collected by the financial institution on
   account thereof, are to be held by the financial institution in safekeeping,
   subject to such instructions of the fiduciary to the financial institution
   that have been authorized by orders of the court; and

   2. Accountings therefor shall be made to the fiduciary at reasonably frequent
   intervals agreeable to the fiduciary. After the receipt of the financial
   institution for the original assets placed with the financial institution has
   been filed with the court, the court shall enter an order waiving the bond to
   be given or previously given by the fiduciary or reduce it so that the bond
   applies only to the estate remaining in the possession of the fiduciary,
   whichever the court deems best for the estate.

B. Whenever the court has ordered any assets of an estate be placed with a
financial institution pursuant to subsection A, any person or corporation having
possession or control of any of the assets, or owing interest, dividends,
principal, or other indebtedness on account thereof, shall, on the due dates
thereof, upon the demand of the financial institution whether the fiduciary has
duly qualified or not, pay and deliver the assets, interest, dividends,
principal, and other indebtedness to the financial institution. The receipt and
acceptance thereof by the financial institution shall relieve the person or
corporation from all further responsibility.

C. Any bank, trust company, or savings institution designated by the court
pursuant to subsection A may accept or reject the designation in any particular
instance. The financial institution shall evidence its acceptance or rejection
by filing the same with the court or the clerk of the court making the
designation within 15 days after actual knowledge of the designation shall have
come to the attention of the financial institution. In the event of acceptance,
the financial institution shall be allowed as a proper charge against the assets
placed with it such reasonable amount for its services and expenses as the court
making the designation may order.

HISTORY: 1972, c. 321, § 26-45.2; 1990, c. 3; 1997, c. 801; 2012, c. 614.