WVC 12 -
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.
WVC 12 - 5 -
ARTICLE 5. PUBLIC SECURITIES.
WVC 12 - 5 - 1
§12-5-1. Securities defined.
The term "securities" when used in this article shall include
all bonds, securities, debentures, notes or other evidences of
indebtedness, and for purposes of this chapter all cash received by
any state spending unit intended to serve as security for a legal
obligation, whether pursuant to court order or otherwise.
WVC 12 - 5 - 2
§12-5-2. Treasurer custodian of securities; charges to companies
for care, exchange and substitution of securities.
(a) The treasurer of this state, unless otherwise expressly
provided by law, shall be custodian of all securities required by
law to be deposited with the state or held in legal custody by the
state, and all departments of this state, commissioners or agents
of the state, who hold any such securities, shall transfer and
deliver the same to the state treasurer to be kept and held by him
as legal custodian thereof until released in the manner provided by
, That the state treasurer shall establish a list of
which securities shall be acceptable securities and notify all
state agencies of the contents of that list: Provided, however,
That the provisions of this subsection shall not apply to the
investment management board.
(b) The treasurer may by formal order of record fix fair and
reasonable charges for the care, custody, exchange and substitution
of securities deposited by insurance companies and companies
issuing annuity contracts. The treasurer shall collect the charges
from the companies and shall deposit the collections in the general
revenue fund: Provided, That no charge shall be made against any
company depositing securities of the par value of less than three
hundred thousand dollars.
WVC 12 - 5 - 3
§12-5-3. Legislative auditor to examine and list securities.
Before the first day of July, two thousand one and at least
every two fiscal years thereafter, the legislative auditor shall
examine and list all of the securities in the custody of the state
treasurer. A copy of the list so examined and certified shall be
transmitted to the state treasurer and the department of
WVC 12 - 5 - 4
§12-5-4. Treasurer to keep accounts and make collections.
The Treasurer shall keep an accurate account of all securities
received by him or her and collect and account for earnings
received and the principal whenever it is due.
WVC 12 - 5 - 5
§12-5-5. Protection and handling of securities.
(a) The noncash securities retained in the treasury shall be
kept in a vault. The treasurer shall use due diligence in
protecting the securities against loss from any cause. The
treasurer shall designate certain employees to take special care of
the securities. Only the treasurer and the designated employees
may have access to the securities, and at least two of these
persons shall be present whenever the securities are handled in any
manner. The treasurer may contract with one or more banking
institutions in or outside the state for the custody, safekeeping
and management of securities. The contract shall prescribe the
rules for the handling and protection of the securities.
(b) The "Treasurer's Safekeeping Fund" is established in the
state treasury. The treasurer shall deposit moneys received
pursuant to this article in the Treasurer's Safekeeping Fund. The
treasurer is authorized to invest the money in accordance with this
code and the restrictions placed on the money, with earnings
accruing to the moneys in the fund. The treasurer shall prescribe
the forms and procedures for processing the moneys.
WVC 12 - 5 - 6
§12-5-6. When notes deemed securities; appraisal.
(a) Whenever, by statute of this state, any public official,
board, commission or department of this state is charged with the
approval of securities required as collateral for the deposit of
public or other funds, or required to be deposited with the state
treasurer, or an investment of capital or surplus or a reserve or
other fund, is required to be maintained consisting of designated
securities deposited with the state treasurer, the securities
shall, at the discretion of that public official, board, commission
or department, include and mean notes executed by the person or
corporation required to make the deposit. The securities shall be
made payable to the state of West Virginia upon demand, or in the
event of the person or corporation, for the benefit of those for
whom the securities are deposited, when the notes are secured by
duly executed deeds of trust on improved, unencumbered real
property located in the state and owned by the person or
corporation executing the notes, the deeds of trust to be approved
by the attorney general of the state as to sufficiency of form and
manner of execution and accompanied by proper abstracts of title
and fire insurance policies equal to the amounts of the notes and
recorded among the land records of the county in which the real
property is located. Whenever any note so secured by a deed of
trust on real property owned by any person or corporation is
approved by any public official, board, commission or department of
this state, the real property shall have an appraised value of at least thirty per centum more than the amount of the note. The
value of the property shall be determined by an appraisal of two
landowners, who are citizens of this state and generally recognized
as experienced real estate appraisers, appointed by the public
official, board, commission or department, charged with the
approval of the securities. The expenses of the appraisal are to
be borne by the person or corporation required to make the deposit,
and each unit of that real property shall have an appraised value
of at least fifty thousand dollars.
For purposes of this section, "improved real property" means
all real property within the limits of an incorporated city or town
on which permanent buildings suitable for residential, industrial
or commercial use are located.
For purposes of this section, real property shall not be
deemed to be encumbered by reason of the existence of instruments
reserving rights-of-way, sewer rights and rights in walls, nor by
reason of building restrictions or other restrictive covenants, nor
by reason of the fact that it, or any part thereof, is subject to
lease under which rents or profits are reserved to the owner:
Provided, That the deed of trust for such investment is a full and
unrestricted first lien upon the property.
(b) Any public official, board, commission or department of
this state charged with the approval of securities required to be
deposited in accordance with this section, shall, at least annually
and more often if deemed proper, appoint a disinterested person or persons, not exceeding three, to make an examination and appraisal
of the securities deposited to determine if those securities meet
the requirements of the law of this state. The cost of that
examination and appraisal and expenses shall be borne by the person
or corporation required to make the deposits as security:
Provided, That the total cost and expenses shall not be less than
ten dollars nor more than twenty-five dollars per diem for each
person conducting the examination.
WVC 12 - 5 - 7
§12-5-7. Treasurer as financial advisor; selection of necessary
parties; employment of bond counsel.
Unless otherwise specifically provided by law, the treasurer
may select or serve as financial advisor for all bonds, notes,
certificates of participation, certificate transactions and all
other forms of securities and indebtedness issued by the state
through its departments, commissions, boards or agencies after the
first day of July, one thousand nine hundred ninety-seven. Unless
otherwise specifically provided by law, the governor shall
coordinate the issuance of all bonds issued by the state and its
departments, commissions, boards and agencies, through the
department of administration and the governor shall select all
other necessary parties, including, but not limited to, bond,
disclosure or other counsel, underwriters, trustee, verification
agent and any other professionals necessary to effectuate the
issuance of the bonds: Provided,
That this section shall not apply
to the housing development fund created pursuant to article
eighteen, chapter thirty-one of this code; and the hospital finance
authority created pursuant to article twenty-nine-a, chapter
sixteen of this code; the West Virginia economic development
authority created pursuant to article fifteen, chapter thirty-one
of this code; the West Virginia parkways, economic development and
tourism authority created pursuant to article sixteen-a, chapter
seventeen of this code; the West Virginia public energy authority
created pursuant to article one, chapter five-d of this code; the West Virginia solid waste management board created pursuant to
article three, chapter twenty-two-c of this code; the West Virginia
water development authority created pursuant to article one,
chapter twenty-two-c of this code; the infrastructure and jobs
development council created pursuant to article fifteen-a, chapter
thirty-one of this code; the school building authority created
pursuant to article nine-d, chapter eighteen of this code; and the
governing boards of higher education: Provided, however,
these entities shall be governed by those provisions of law
specifically designating financial and other professional counsel
and personnel for bond issuances. All selections of professionals
shall be competitive, but the bidding shall not be required to
comply with the provisions of article three, chapter five-a of this
Note: WV Code updated with legislation passed through the 2014 1st Special Session
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