§ 2-75. Security in lieu of surety bond—Generally  

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  • (a) Any bank mentioned in section 2-73 may deposit with the treasurer, in lieu of the bond required by section 2-74, bonds of the United States of America or of this state and obligations of the City of Newport News, bonds of any city or county of this state, or farm loan bonds issued under an act of Congress, approved July 17, 1916, known as the Federal Farm Loan Act, or bonds listed for sale on the New York Stock Exchange, bonds and notes of the Federal National Mortgage Association and the Federal Home Loan Banks, debentures and other obligations of federal intermediate credit banks, or banks of cooperatives issued pursuant to acts of Congress, to be held upon the same condition and trust for the protection and indemnity of the city as is stipulated in section 2-74; provided, that such bonds shall be acceptable only at the actual value thereof, except obligations of the City of Newport News, which shall be acceptable at their par value.

    (b) Any bank mentioned in section 2-73 may deposit with the city treasurer, in lieu of the surety or other bonds designated in section 2-74 and subsection (a) of this section, notes or bonds secured by first mortgages or deeds of trust on real estate in the City of Newport News as security and indemnity for a portion of such fund so on deposit, but at no time, under any circumstances, shall the character of security provided for in this subsection be acceptable for any amount in excess of one-half (½) of the funds on deposit in any such depository. These notes and bonds shall be delivered to the city treasurer accompanied by first mortgages or deeds of trust securing the same, abstracts of titles with a certificate of title satisfactory to the city attorney, and proper insurance policies, all of which, including the value of such notes and bonds, shall be at all times acceptable and satisfactory to the city treasurer and the director of finance.

    (c) The security evidenced by notes and bonds secured by deeds of trust or mortgages and by bonds listed on the New York Stock Exchange, as provided in this section, shall, at all times, be of the value of at least ten (10) percent in excess of the amount of money for which they are accepted and held as such security, less such amount as shall be insured, by evidence satisfactory to the city treasurer, by the Federal Deposit Insurance Corporation, a corporation created pursuant to an act of Congress of the United States, approved June 16, 1933, and known as the Banking Act of 1933, and amendments thereto.

(Ord. No. 15, §§ 4—6; Ord. No. 1526, § 1; Code 1961, §§ 16-8—16-10)