Bill Text: VA SB777 | 2021 | Regular Session | Prefiled
Bill Title: Virginia Security for Public Deposits Act; collateral for public deposits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-12-04 - Left in General Laws and Technology [SB777 Detail]
Download: Virginia-2021-SB777-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §2.2-4402 of the Code of Virginia is amended and reenacted as follows:
§2.2-4402. Collateral for public deposits.
Qualified public depositories shall elect to secure deposits by either the pooled method or the dedicated method. Every qualified public depository shall deposit with a qualified escrow agent eligible collateral equal to or in excess of the required collateral within two business days of accepting the public deposit. Eligible collateral shall be valued as determined by the Treasury Board. Substitutions and withdrawals of eligible collateral may be made as determined by the Treasury Board.
Notwithstanding any other provisions of law, no qualified
public depository shall be required to give bond or pledge securities or
instruments in the manner herein provided for the purpose of securing deposits
received or held in the trust department of the depository and that are secured
as required by §6.2-1005 of the Code of Virginia
or that are secured pursuant to Title
12,
U.S.C. §92a of the United States
Code by securities of the classes prescribed by §6.2-1005 of the Code of Virginia.
No qualified public depository shall accept or retain any public deposit that is required to be secured unless it has deposited eligible collateral equal to its required collateral within two business days of accepting the public deposit with a qualified escrow agent pursuant to this chapter.