6.1-378.8 - (Repealed effective October 1, 2010) Types of permissible investments.
§ 6.1-378.8. (Repealed effective October 1, 2010) Types of permissibleinvestments.
A. Except to the extent otherwise limited by the Commission pursuant to §6.1-378.7, the following investments are permissible under § 6.1-378.7:
1. Cash, a certificate of deposit, or senior debt obligation of an insureddepository institution, as defined in section 3 of the Federal DepositInsurance Act, 12 U.S.C. § 1813.
2. A banker's acceptance or bill of exchange that is eligible for purchaseupon endorsement by a member bank of the Federal Reserve System and iseligible for purchase by a Federal Reserve Bank.
3. An investment bearing a rating of one of the three highest grades, asdefined by a nationally recognized organization that rates securities.
4. An investment security that is an obligation of the United States or adepartment, agency, or instrumentality thereof; an investment in anobligation that is guaranteed fully as to principal and interest by theUnited States; or an investment in an obligation of a state or a governmentalsubdivision, agency, or instrumentality thereof.
5. Receivables that are payable to a licensee from its authorized delegates,in the ordinary course of business, pursuant to contracts which are not pastdue or doubtful of collection if the licensee does not hold at one timereceivables under this paragraph from any one person aggregating more than 10percent of the licensee's total permissible investments. An authorizeddelegate shall remit all money owing to the licensee in accordance with theterms of the contract between the licensee and the authorized delegate but inno event more than seven business days.
6. A share or a certificate issued by an open-end management investmentcompany that is registered with the U.S. Securities and Exchange Commissionunder the Investment Companies Act of 1940, 15 U.S.C. § 80a-1 et seq., andwhose portfolio is restricted by the management company's investment policyto investments specified in subdivisions 1 through 4 of this subsection.
B. The following investments are permissible under § 6.1-378.7, but only tothe extent specified:
1. An interest-bearing bill, note, bond, or debenture of a person whoseequity shares are traded on a national securities exchange or on a nationalover-the-counter market, if the aggregate of investments under thissubdivision does not exceed 20 percent of the total permissible investmentsof a licensee and the licensee does not at one time hold investments underthis subdivision in any one person aggregating more than 10 percent of thelicensee's total permissible investments.
2. A share of a person traded on a national securities exchange or a nationalover-the-counter market or a share or a certificate issued by an open-endmanagement investment company that is registered with the U.S. Securities andExchange Commission under the Investment Companies Act of 1940, 15 U.S.C. §80a-1 et seq., and whose portfolio is restricted by the management company'sinvestment policy to shares of a person traded on a national securitiesexchange or a national over-the-counter market, if the aggregate ofinvestments under this paragraph does not exceed 20 percent of the totalpermissible investments of a licensee and the licensee does not at one timehold investments in any one person aggregating more than 10 percent of thelicensee's total permissible investments.
3. A demand-borrowing agreement made to a corporation or a subsidiary of acorporation whose securities are traded on a national securities exchange ifthe aggregate of the amount of principal and interest outstanding underdemand-borrowing agreements under this paragraph does not exceed 20 percentof the total permissible investments of a licensee and the licensee does notat one time hold principal and interest outstanding under demand-borrowingagreements under this paragraph with any one person aggregating more than 10percent of the licensee's total permissible investments.
4. Any other investment the Commission designates, to the extent specified bythe Commission.
C. The aggregate of investments under subsection B may not exceed 50 percentof the total permissible investments of a licensee calculated in accordancewith § 6.1-378.7.
(2009, c. 346.)