§ 6.1-32.8. Deposits of funds held or received by trust subsidiaries or subsidiary bank with affiliate banks; s...
Funds received or held by such trust subsidiary or subsidiary bank while awaiting investment or distribution shall not be used by an affiliate bank or owning bank in the conduct of its business or deposited in such bank, unless the bank first delivers to its trust department or to the trust subsidiary or subsidiary bank, as collateral security therefor, securities as defined in § 6.1-21 in an amount described below.
The securities so deposited as collateral shall be owned by the bank and shall at all times be at least equal in market value to the amount of trust funds held on deposit by such trust subsidiary or subsidiary bank, less such amount thereof as shall be insured by the Federal Deposit Insurance Corporation.
In the event of the failure or liquidation of such bank, the trust subsidiary or subsidiary bank and the owners of the beneficial interest in such trust funds shall have a lien on the bonds or other securities so set apart in addition to their claims against the estate of the bank.
(1974, c. 286; 1991, c. 282.)
Sections: Previous 6.1-32.1 6.1-32.2 6.1-32.3 6.1-32.4 6.1-32.5 6.1-32.6 6.1-32.7 6.1-32.8 6.1-32.9 6.1-32.10 6.1-32.11 6.1-32.12 6.1-32.13 6.1-32.14 6.1-32.14:1 NextLast modified: April 16, 2009