University of Virginia Library

ARTICLE V

Investment of Funds

Section 501. Moneys held for the credit of the Construction Fund shall, as nearly as may
be practicable, be invested and reinvested by the State Treasurer in securities which are
defined as legal investments for public funds or deposited and redeposited in interest bearing
time deposits and certificates of deposit of national banks located within the State of
Virginia and of banks organized pursuant to Chapter 2 (§ 6-5 et seq.) of Title 6, Code of
Virginia, 1950, as amended, all as provided in and subject to the terms, limitations and conditions
of Sections 298, 299 of Title 2, Chapter 17, Code of Virginia, 1950, as amended, which shall mature,
or which shall be subject to redemption or withdrawal by the holder or depositor thereof at the
option of such holder or depositor, not later than the respective dates when the moneys held for
the credit of the Construction Fund will be required for the purposes intended.

Moneys held for the credit of the Revenue Fund and the Sinking Fund shall, as nearly as
may be practicable, be invested and reinvested by the State Treasurer in direct obligations of,
or obligations the principal of and the interest on which are unconditionally guaranteed by,
the United States Government which shall mature, or which shall be subject to redemption by the
holder thereof at the option of such holder, not later than the respective dates when the moneys
held for the credit of said Funds will be required for the purposes intended.

Section 502. Obligations so purchased as an investment of moneys in any such Fund shall be
deemed at all times to be a part of such Fund, and the interest accruing thereon and any profit
realized from such investment shall be credited to such Fund, and any loss resulting from such
investment shall be charged to such Fund. The State Treasurer shall sell at the best price
obtainable or present for redemption any obligations so purchased whenever it shall be necessary
to do so in order to provide moneys to meet any payment or transfer from any such Fund. Neither
the State Treasurer nor the Board shall be liable or responsible for any loss resulting from any
such investment.