Code of Virginia § 6.2-870. Limitation of amount invested in bank premises.
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/va/title-6-2/chapter-8/6-2-870A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. No bank, without the approval of the Commission, shall invest in its bank building and premises, property held for future accommodation, or in stock or other obligations of any corporation holding title to premises of the bank, if the aggregate of such investments and loans, together with the amount of any indebtedness of such corporation, 50 percent or more of the stock of which is owned by the bank, will exceed the greater of
(i)50 percent of the capital stock, surplus, and undivided profits of the bank or
(ii)100 percent of the capital stock of the bank. If, subsequent to any investment or loan, the surplus or undivided profits of any such bank are diminished by losses so that the investments or loans amount to more than the greater of
(a)50 percent of its paid-in capital stock and its remaining surplus and undivided profits or
(b)100 percent of the capital stock, the bank shall not pay dividends without the permission of the Commission until such investments or loans are equal to or less than the greater of 50 percent of the capital stock, surplus, and undivided profits, or 100 percent of the capital stock of the bank.
B. In computing the bank's investment in depreciable property, the initial price or cost may be reduced by reasonable depreciation.
C. The Commission shall not in any event approve investments and loans in excess of the foregoing if the aggregate amount thereof would exceed 60 percent of the bank's capital stock, surplus, and undivided profits. The Commission in approving such excess investments may impose, as a condition of such approval, restrictions upon dividends or other restrictions upon the bank. The restrictions shall expire automatically when the investment of the bank in building premises shall no longer exceed the greater of
(i)50 percent of the capital stock, surplus, and undivided profits of the bank or
(ii)100 percent of the capital stock.
Code 1950, § 6-49; 1966, c. 584, § 6.1-57; 1968, c. 61; 2010, c. 794 .