6.1-79 - (Repealed effective October 1, 2010) Same; exception as to governmental deposits; insolvent national bank funds, proceeds of sale of federal obligations, and bankruptcy funds.
§ 6.1-79. (Repealed effective October 1, 2010) Same; exception as togovernmental deposits; insolvent national bank funds, proceeds of sale offederal obligations, and bankruptcy funds.
Notwithstanding the provisions of § 6.1-78, any bank may deposit securitiesfor the purpose of securing deposits of the United States government, and itsagencies; the Commonwealth of Virginia, its agencies, and its politicalsubdivisions; insolvent national bank funds as permitted under 12 U.S.C. §192; proceeds of sale of United States obligations as permitted under 31U.S.C. § 771; and bankruptcy funds deposited under the provisions of 11U.S.C. § 15345. Notwithstanding the provisions of § 6.1-78 any bank maydeposit securities for the purpose of securing sureties on surety bondsfurnished to secure such deposits, or may, in lieu of depositing suchsecurities to secure deposits of political subdivisions of the Commonwealth,by its board of directors, adopt a resolution before such public funds aredeposited therein, to the effect that, in the event of the insolvency orfailure of such bank, such public funds thereafter deposited therein shall,in the distribution of the assets of such bank, be paid in full before anyother depositors shall be paid deposits thereafter made therein. The adoptionof such resolution shall be deemed to constitute an obligation binding onsuch bank.
(Code 1950, § 6-65; 1966, c. 584; 1982, c. 112; 1994, c. 7.)