2.2-4404 - Procedure for payment of losses by dedicated method.
§ 2.2-4404. Procedure for payment of losses by dedicated method.
When the Treasury Board determines that a qualified public depositorysecuring public deposits in accordance with this section is a defaultingdepository, it shall as promptly as practicable take steps to reimbursepublic depositors of all uninsured public deposits using the followingprocedures:
1. The Treasury Board shall ascertain the amount of uninsured public depositsheld by the defaulting depository with the cooperation of the Commissioner ofFinancial Institutions, the receiver appointed for such depository or by anyother means available.
2. The amount of such uninsured public deposits ascertained as provided insubdivision 1, plus any costs associated with liquidation of the eligiblecollateral of the defaulting depository, shall be assessed by the TreasuryBoard against the defaulting depository. The State Treasurer shall promptlytake possession of the eligible collateral deposited by such depository withthe depository's escrow agent, as is necessary to satisfy the assessment ofthe Treasury Board and shall liquidate the same and turn over the netproceeds to the Treasury Board.
3. Upon receipt from the State Treasurer of the eligible collateralliquidated, the Treasury Board shall reimburse the public depositors from theproceeds of the collateral up to the extent of the depository's depositliability to them, net of any applicable deposit insurance.
(1984, c. 135, § 2.1-363.1; 2001, c. 844; 2009, c. 64; 2010, cc. 640, 674.)