Code of Virginia - Title 6.1 Banking And Finance - Section 6.1-32.7 When security not required of trust subsidiaries

§ 6.1-32.7. When security not required of trust subsidiaries

No trust subsidiary with combined unimpaired capital stock and surplus of $200,000 or more shall be required by any officer or court of this Commonwealth to give security upon appointment to or acceptance of any office or trust which it may, by law, be authorized to execute; provided that no trust subsidiary shall qualify in a fiduciary capacity on an estate having a value in excess of its combined unimpaired capital and surplus, without giving security for such excess, unless waived by the person creating such fiduciary relationship or unless there is compliance with the further provisions of this section.

(a) A Virginia bank holding company or a bank owning directly or indirectly through a subsidiary bank 100 percent of the stock, exclusive of directors' qualifying shares, of such trust subsidiary may file with the State Corporation Commission and with the circuit court for the jurisdiction in which the main office of such bank holding company or bank is located an undertaking to be fully responsible for the existing and future fiduciary acts and omissions of its trust subsidiary. If such undertaking is filed, a trust subsidiary may qualify in a fiduciary capacity without giving security if the assets it is to receive in such capacity have a value not greater than the combined and unimpaired capital and surplus of the parent Virginia bank holding company or parent bank which shall have undertaken to be responsible for the acts of such trust subsidiary. If no such undertaking shall have been filed, and corporate surety is provided, the premium thereof shall be borne by the trust subsidiary and not the fiduciary estate.

(b) If an affiliate bank shall already have qualified in any fiduciary capacity and given bond, without security, and the trust subsidiary or subsidiary bank shall qualify as successor fiduciary, then if the order of substitution shall so provide, but only with the consent of the fiduciary for which there is to be substitution, the predecessor fiduciary shall remain liable on its bond for the acts of its named successor, and no security shall be required of the successor fiduciary, if the bond of the fiduciary for which there is to be substitution is otherwise sufficient.

(1974, c. 286.)

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Last modified: April 2, 2009