Code of Virginia § 6.2-809. Bankers' banks.
291 words·~1 min read·
/va/title-6-2/chapter-8/6-2-809·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. A bank may be incorporated as provided in § 6.2-808 for the purpose of becoming a bankers' bank.
B. Except as specifically provided in this section or by regulation or order of the Commission, a bankers' bank shall be vested with all of the powers and subject to all of the restrictions imposed upon a bank.
C. Notwithstanding any other provision in this title to the contrary, a bankers' bank shall only accept deposits from or make loans to
(i)a financial institution which has or is eligible for insurance of deposits by a federal agency,
(ii)a bank in organization that has applied for insurance of deposits by a federal agency,
(iii)a financial institution holding company as defined in § 6.2-700 or a savings institution holding company as defined in § 6.2-1100 owning an entity described in clause
(i)or (ii),
(iv)the officers, directors and employees of any such financial institution, bank in organization or holding company,
(v)any person referred to a bankers' bank by a financial institution or by a bank in organization that has applied for insurance of deposits by a federal agency, or (vi), with the prior approval of the Commissioner and subject to such conditions as the Commissioner may impose, other persons.
D. A bankers' bank may form a bank holding company upon compliance with the provisions of Chapter 7 (§ 6.2-700 et seq.) and any applicable federal law.
E. A bankers' bank may purchase investments or securities of governments or private corporations which are traded on the open market such as are authorized to any other bank organized under the provisions of this chapter.
1989, c. 650, § 6.1-6.1; 1996, c. 218 ; 2006, c. 633 ; 2010, c. 794 .