77211715.2-2619Virginia Decodedhttps://vacode.org2016Counties, Cities And TownsPowers Of Local GovernmentPublic Finance ActProvisions Applicable To All BondsInvestment of proceeds pending application to authorized purposeCode 1950, § 15-666.48; 1958, c. 640; 1960, c. 92; 1962, c. 623, § 15.1-207; 1988, c. 834; 1991, c. 668, § 15.1-227.21; 1997, c. 587.http://law.lis.virginia.gov/vacode/15.2-2619/2.2-4500Legal investments for public sinking funds/2.2-4500//15.2-2619/15.2/II/26/2/15.2-2619

Pending the application of the proceeds of any bonds authorized under the provisions of this chapter to the purpose or purposes for which the bonds have been authorized, all or any part of the proceeds may be invested, in accordance with Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2. Any security purchased as an investment of the proceeds of bonds shall be deemed at all times to be a part of the proceeds, and the interest accruing on the investment and any profit realized from it shall be credited to the proceeds; provided, however, if authorized by resolution of the governing body, the locality may apply the interest accruing on the investment and any profit realized from it to pay costs as defined by this chapter.section

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