§ 6.1-194.35. How federal savings institution may convert into state association or bank
A federal savings institution doing business in the Commonwealth may become a state association, and such a federal savings institution that is a stock institution may become a state bank, as follows:
1. In either case, the federal savings institution shall take such action as will under federal law and regulations terminate its existence as a federal savings institution when the conversion is effective.
2. In the case of a conversion to a state association, the directors shall organize a corporation under this chapter and the Virginia Stock Corporation Act (§ 13.1-601 et seq.) or the Virginia Nonstock Corporation Act (§ 13.1-801 et seq.), and the new corporation shall apply for a certificate of authority to do business under § 6.1-194.12.
3. In the case of a conversion to a state bank, the directors of the federal savings institution shall organize a corporation under Chapter 2 (§ 6.1-3 et seq.) of this title and the Virginia Stock Corporation Act, and the new corporation shall apply for a certificate of authority to do business under § 6.1-13. If the applicant meets the standards established by § 6.1-13, the Commission may issue it a certificate of authority to begin a banking business. The order shall designate the main office of the federal savings institution as the main office of the resulting bank, and the resulting bank shall be permitted to operate all branch offices of the former federal savings institution. Within one year of the date of such a conversion, the resulting bank shall conform its assets and operations to the provisions of law regulating the operation of banks. The Commission may grant such resulting bank additional one-year periods, not to exceed a total of four additional years, in which to conform its assets and operations to the provisions of law regulating the operation of banks.
(Code 1950, §§ 6-201.45, 6.1-175, 6.1-195.54; 1960, c. 402; 1966, c. 584; 1972, c. 796; 1975, c. 129; 1985, c. 425; 1995, c. 133.)
Sections: Previous 6.1-194.29 6.1-194.30 6.1-194.31 6.1-194.32 6.1-194.32:1 6.1-194.33 6.1-194.34 6.1-194.35 6.1-194.36 6.1-194.37 6.1-194.38 6.1-194.39 6.1-194.40 6.1-194.41 6.1-194.42 NextLast modified: April 16, 2009