§ 6.1-32.9. Substitution of trust subsidiary or subsidiary bank under common ownership as fiduciary
A. Upon the grant to a trust subsidiary of permission to engage in the trust business, the trust subsidiary may file an application in the circuit court of the jurisdiction in which its main office is located requesting that it be substituted, except as may be excluded in such application, in every fiduciary capacity for each of its owning banks, or in the case of a Virginia bank holding company for any one or more of its affiliate banks specified in the application. Upon a finding that (i) the trust subsidiary has been granted permission to engage in the trust business by the State Corporation Commission or the Comptroller of the Currency if the trust subsidiary is a national banking association, the main office of which is in Virginia, and (ii) the requirements of § 6.1-32.7 have been met, the court shall enter an order substituting the trust subsidiary in every fiduciary capacity for each of its specified affiliate banks, or specified owning banks, except as may be otherwise specified in the application. Upon entry of such order, the trust subsidiary shall, without further act, be substituted in every fiduciary capacity, and such substitution shall be evidenced by filing a copy of the order with the clerk of any circuit court in the Commonwealth. Such order shall be indexed in each index in the records of such court in which substitutions of fiduciaries are otherwise indexed. Such application may be made ex parte and need not list the fiduciary capacities in which substitution is made. If the requirements of § 6.1-32.7 have been met, the order of substitution shall specify that the trust subsidiary shall be deemed without further act to have given bond with open penalty with respect to each fiduciary capacity in which there is substitution.
B. Upon the grant to a subsidiary bank of permission to engage in the trust business, such subsidiary bank may file an application in the circuit court of the jurisdiction in which its main office is located, requesting that it be substituted, except as may be specified in such application, in every fiduciary capacity for a bank under common ownership. Upon a finding that (i) the subsidiary bank has been granted such permission to engage in the trust business by the State Corporation Commission or the Comptroller of the Currency, and (ii) the unimpaired capital and surplus of such subsidiary bank is sufficient as prescribed in § 6.1-18, or bond with corporate surety has been posted for any excess, or has been validly waived, the court shall enter an order substituting the subsidiary bank in every fiduciary capacity for each of the specified banks under common ownership, except as may be otherwise specified in the application. Upon entry of such order, such subsidiary bank shall, without further act, be substituted in every such fiduciary capacity and such substitution shall be evidenced by filing a copy of the order with the clerk of any circuit court in the Commonwealth. Such order shall be indexed in each index in the records of such court in which substitutions of fiduciaries are otherwise indexed. Such application may be made ex parte and need not list the fiduciary capacities in which substitution is made. If a bank under common ownership with the subsidiary bank shall already have qualified in any fiduciary capacity and given bond, without surety, 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 or corporate surety shall be required of the successor fiduciary on its bond.
C. Any bond, with corporate surety, posted under subsection A or B of this section or under § 6.1-32.7 may be a blanket bond conditioned as otherwise contemplated by law.
D. Each designation in a will or other instrument heretofore or hereafter executed of a bank as fiduciary shall be deemed a designation of the trust subsidiary or subsidiary bank under common ownership substituted for such bank pursuant to this section except when the instrument is executed after such substitution and expressly negates the application of this section and except that no waiver of surety with respect to any fiduciary bond shall be effective, except in such case when the bond would be otherwise sufficient as contemplated by § 6.1-32.7 or subsection B of this section. Any grant in such an instrument of any discretionary power shall be deemed conferred upon the fiduciary deemed to have been nominated hereunder.
E. A bank shall account jointly with the trust subsidiary or subsidiary bank which has been substituted as fiduciary for such bank pursuant to this section for the accounting period during which the trust subsidiary or subsidiary bank is initially so substituted. Upon substitution pursuant to this section, the bank shall deliver to the trust subsidiary or to the substituted subsidiary bank under common ownership all assets held by the bank as fiduciary (except assets held for accounts to which there has been no substitution), and upon such substitution all such assets shall become the property of the trust subsidiary or subsidiary bank as fiduciary without the necessity of any instrument of transfer or conveyance.
(1974, c. 286; 1987, c. 352; 1991, c. 282.)
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