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 depositors,
not later than ninety (90) days after the date of such investment or deposit

Moneys held for the credit of the Sinking 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 sinking funds in Section 297 of Title 2, Chapter 17, Code of Virginia, 1950, as amended, which
shall mature, or which shall be subject to redemption by the holder thereof at the option of such
holder, not later than August 1, 1983

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 so to do
in order to provide moneys to meet any payment or transfer from any such Fund. Neither the State
Treasurer not the Board shall be liable or responsible for any loss resulting from any such
investment