Bill Text: VA SB510 | 2024 | Regular Session | Chaptered
Bill Title: Investment of public funds; qualified public entity allowed to invest in asset-backed securities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-03-14 - Governor: Acts of Assembly Chapter text (CHAP0066) [SB510 Detail]
Download: Virginia-2024-SB510-Chaptered.html
Be it enacted by the General Assembly of Virginia:
1. That §2.2-4511 of the Code of Virginia is amended and reenacted as follows:
§2.2-4511. Investment of funds in asset-backed securities.
A. For purposes of this section, "qualified public entity" means any state agency, institution of the Commonwealth, or statewide authority created under the laws of the Commonwealth having an internal or external public funds manager with professional investment management capabilities.
B. Notwithstanding any provision of law to the
contrary, any qualified public entity of the Commonwealth may invest any and
all moneys belonging to it or within its control, other than sinking funds, in
asset-backed securities with a duration of no more than five years (i) that
are unconditionally guaranteed as to payment of principal and interest by the
United States or any agency thereof or (ii) with a rating of at least AAA
or Aaa by two rating agencies. One of the two qualifying ratings shall be
(i) (a) at least Aaa by Moody's Investors Service, Inc.; (ii)
(b) at least AAA by Standard and Poor's; or (iii) (c) at
least AAA by Fitch Ratings, Inc.
As used in this section, "qualified public
entity" means any state agency, institution of the Commonwealth or
statewide authority created under the laws of the Commonwealth having an
internal or external public funds manager with professional investment
management capabilities.
