§ 8.01-583.How securities taken and kept; power of receivers over same.
Chapter 22. Receivers, General and Special · Article 1. General Receivers · Last amended 1990 · Last verified July 16, 2026
In one sentenceThis section requires investment securities purchased by a general receiver to be titled and held in the receiver's own name, sellable or transferable only by court order, and directs receivers to structure FDIC-insured investments so the insurance coverage applies to the funds.
Full Text of § 8.01-583
Text size
The securities in which under the orders of the court such investments may be made shall be taken in the name of the general receiver and be kept by him, unless otherwise specially ordered. He shall have power to sell, transfer or collect the same, only upon order of the court; and in case of his death, resignation or removal his successor, or any person specially appointed by the court for that purpose, shall have like power.
Notwithstanding the foregoing paragraph, when a general receiver places funds in a security or investment which is insured by the Federal Deposit Insurance Corporation or other federal insurance agency, the general receiver shall to the extent practicable invest these funds so that insurance coverage is provided by the Federal Deposit Insurance Corporation or other federal insurance agency.
Plain-English Summary
Once a general receiver invests money under court order, the resulting securities are not held anonymously. This section requires them to be taken in the receiver's own name and kept by him, unless the court specially orders otherwise, so the paper trail always points back to who is accountable for the funds.
That accountability comes with a check on the receiver's freedom to act. He may sell, transfer, or collect the securities only upon court order — he cannot liquidate or reassign them on his own judgment. If the receiver dies, resigns, or is removed, his successor, or anyone else the court specially appoints, inherits that same limited power.
A later addition to the section pushes receivers to maximize federal deposit protection. When a receiver places funds in an FDIC-insured security or investment, he must, to the extent practicable, structure the investment so the insurance coverage reaches those funds — a safeguard for money that is, after all, being held for someone else.
Frequently Asked Questions
In whose name must securities purchased by a general receiver be held?
In the name of the general receiver, and kept by him, unless the court specially orders otherwise.
Can a general receiver sell or transfer securities on his own?
No, he may sell, transfer, or collect them only upon order of the court.
What happens to these powers if the receiver dies, resigns, or is removed?
His successor, or any person specially appointed by the court for that purpose, has the same power over the securities.
What does the FDIC provision require of a general receiver?
When funds are placed in a security or investment insured by the FDIC or another federal insurance agency, the receiver must, to the extent practicable, invest so that insurance coverage is provided.
Does this section apply to all investments a receiver makes?
It applies to investments made under the orders of the court, including those made pursuant to § 8.01-582.
Amendment History
Code 1950, § 8-726; 1977, c. 617; 1988, c. 553; 1990, c. 3.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as:virginia general receiver securitieshow receiver holds investments virginiaFDIC insured receiver funds virginiareceiver sale of securities court order