Virginia Security for Public Deposits Act

Public deposits — the funds of state and local governmental units held at financial institutions — must be secured, and this act sets the terms of that protection. It creates a program of qualified public depositories, in which participating banks and credit unions pledge eligible collateral under approved custodial agreements and submit to oversight by a designated state financial officer, who may suspend, disqualify, or impose administrative penalties and cease-and-desist orders on institutions that fail to comply. When a depository fails, losses to public depositors are covered through pooled mutual responsibility and contingent liability among the participating institutions, backed by a dedicated trust fund and a defined claims-and-payment procedure; public depositors themselves must meet certain requirements to retain that protection.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.