Current through Register Vol. 41, No. 3, September 23, 2024
A. Securities
eligible for collateral are limited to:
1.
Obligations of the Commonwealth. Bonds, notes and other evidences of
indebtedness of the Commonwealth of Virginia, and securities unconditionally
guaranteed as to the payment of principal and interest by the Commonwealth of
Virginia.
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, or any agency thereof.
3. Obligations of Virginia counties, cities,
and other public bodies. Bonds, notes, and other evidences of indebtedness of
any county, city, town, district, authority, or other public body of the
Commonwealth upon which there is no default provided that such bonds, notes,
and other evidences of indebtedness of any county, city, town, district,
authority, or other public body are either direct legal obligations of, or
unconditionally guaranteed as to the payment of principal and interest by, the
county, city, town, district, authority, or other public body in question and
revenue bonds issued by agencies or authorities of the Commonwealth or its
political subdivisions upon which there is no default and that are rated Baa2
or better by Moody's Investors Service, Inc. or BBB or better by Fitch Ratings,
Inc. or Standard & Poor's Financial Services LLC.
4. Bonds and other obligations issued,
guaranteed, or assumed by the International Bank for Reconstruction and
Development by the African Development Bank, or by the Asian Development
Bank.
5. Obligations partially
insured or guaranteed by any U.S. Government Agency.
6. Obligations (including revenue bonds) of
states, other than Virginia, and their municipalities or political subdivisions
rated A2 or better by Moody's Investors Service, Inc. or A or better by Fitch
Ratings, Inc. or Standard & Poor's Financial Services LLC.
7. Any additional securities approved by the
Treasury Board pursuant to § 2.2-4405.4 of the Code of Virginia.
B. Federal Home Loan Bank letters
of credit issued in accordance with the Security for Public Deposits Act are
eligible as collateral.
C. No
security which is in default as to principal or interest shall be acceptable as
collateral.
D. No qualified public
depository shall utilize securities issued by itself, its holding company, or
any affiliate for purposes of collateralizing its public deposits.
E. Securities excluded by action of the
Treasury Board pursuant to § 2.2-4405.4 of the Code of Virginia shall not be
acceptable.
Statutory Authority: § 2.2-4405 of the Code of
Virginia.
