                                 CODE OF VIRGINIA

IN WHAT SECURITIES FIDUCIARIES MAY INVEST; DEFINITIONS (§ 64.2-1502)

A. As used in this section:
			&#8220;Fiduciary&#8221; has the same meaning as provided in &#xA7; 8.01-2 and
also includes an attorney-in-fact or agent acting for a principal under a
written power of attorney, a custodian under &#xA7; 64.2-1911, and a custodial
trustee under &#xA7; 64.2-906.
			&#8220;National rating service&#8221; means Standard &amp; Poor&#8217;s
Corporation, Moody&#8217;s Investors Service, Inc., Duff and Phelps, Inc., Fitch
Investors Corporation, and any successor to the rating business of any of them.

B. Notwithstanding any other provision of law designating as legal investments
for fiduciaries the bonds, notes, obligations, or other evidences of
indebtedness issued by a governmental entity or political subdivision of the
Commonwealth, including but not limited to agencies, authorities, commissions,
districts, boards, or local governments, and except as specifically provided in
§ 2.2-4519, fiduciaries, whether individual or corporate, shall, except as
limited in subsection E, be conclusively presumed to have been prudent in
investing the funds held by them in a fiduciary capacity in only the following
securities:

   1. Obligations of the Commonwealth, its agencies and political subdivisions.
   The following obligations:
   				a. Bonds, notes, and other evidences of indebtedness of the Commonwealth
   and securities unconditionally guaranteed as to the payment of principal and
   interest by the Commonwealth;
   				b. Revenue bonds, revenue notes, or other evidences of revenue
   indebtedness issued by agencies or authorities of the Commonwealth upon which
   there is no default; and
   				c. Bonds, notes, and other evidences of indebtedness of any county, city,
   town, district, authority, or other public body in the Commonwealth upon which
   there is no default provided that such bonds, notes, and other evidences of
   indebtedness are (i) direct legal obligations of the public body, for the
   payment of which the public body has pledged its full faith and credit and
   unlimited taxing power, or (ii) unconditionally guaranteed as to the payment
   of principal and interest by the public body.
   				In every case referred to in this subdivision, such bonds, notes, or other
   evidences of indebtedness shall be rated in one of the two highest rating
   categories of at least one national rating service and not rated in a category
   lower than the two highest rating categories of any national rating service.
   Determination of an obligation&#8217;s rating in one of the two highest rating
   categories shall be made without regard to any refinement or gradation of such
   rating category by numerical or other modifier. In addition, the remaining
   maturity of such bonds, notes, or other evidences of indebtedness shall not be
   greater than five years.

   2. Obligations of the United States. Bonds, notes, and other obligations of
   the United States and securities unconditionally guaranteed as to the payment
   of principal and interest by the United States with a remaining maturity not
   greater than five years, except in the case of savings bonds, which may have a
   longer maturity. The obligations enumerated in this subdivision may be held
   directly or in the form of repurchase agreements collateralized by such
   obligations or in the form of securities of any open-end or closed-end
   management type investment company or investment trust registered under the
   federal Investment Company Act of 1940, provided that the portfolio of such
   investment company or investment trust is limited to such obligations or
   repurchase agreements collateralized by such obligations, or securities of
   other such investment companies or investment trusts whose portfolios are so
   restricted.

   3. Savings accounts, time deposits, or certificates of deposit. Savings
   accounts, time deposits, or certificates of deposit in any bank, savings bank,
   trust company, savings and loan association, or credit union authorized to do
   business in the Commonwealth, but only to the extent that such accounts,
   deposits, or certificates are fully insured by the Federal Deposit Insurance
   Corporation or any successor federal agency or by the National Credit Union
   Share Insurance Fund or any successor to it.

C. Notwithstanding the provisions of this section, investments listed in &#xA7;
2.2-4519 as in effect prior to July 1, 1992, which continue to be held on July
1, 1992, shall be subject to &#xA7; 64.2-781, and any reference to the Virginia
&#8220;legal list&#8221; or to &#xA7; 2.2-4519 or any predecessor statute
contained in a will, trust, or other instrument that was irrevocable on June 30,
1992, shall be construed to refer to such section as in effect on June 30, 1992,
or at such earlier time as may be specified in the controlling document, absent
an expression of intent to the contrary contained in such document.

D. The permissible investments specified in subsection B are not exclusive and
shall not be construed to limit a fiduciary&#8217;s investments as permitted
pursuant to the Uniform Prudent Investor Act (&#xA7; 64.2-780 et seq.).

E. The presumption under subsection B shall apply to (i) a fiduciary only for a
calendar year in which the value of the intangible personal property under the
fiduciary&#8217;s control or management does not exceed $135,000 at the
beginning of such year or (ii) a fiduciary who, on motion for good cause shown,
has obtained express authorization from the court having jurisdiction over the
fiduciary for the presumption under subsection B to apply.

HISTORY: 1992, c. 810, § 26-40.01; 1996, c. 508; 1999, c. 772; 2005, c. 62;
2007, c. 517; 2012, c. 614; 2025, c. 148.