§ 6.1-57. Limitation of amount invested in bank building, etc
No bank, without the approval of the Commission, shall invest in its bank building and premises, or 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 whose stock is owned by the bank, will exceed 50 percent of the capital stock, surplus and undivided profits of the bank, or 100 percent of the capital stock of the bank, whichever is greater. If, subsequent to any investment or loan, the surplus or undivided profits of any such bank be diminished by losses so that such investments or loans shall amount to more than 50 percent of its paid-in capital stock and its remaining surplus and undivided profits, or 100 percent of the capital stock, whichever is greater, such bank shall not pay dividends without the permission of the Commission until such investment or loans shall be equal to or less than 50 percent of the capital stock, surplus, and undivided profits, or 100 percent of the capital stock of the bank, whichever is greater.
In computing the bank's investment in depreciable property, the initial price or cost may be reduced by reasonable depreciation.
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, which restrictions shall expire automatically when the investment of the bank in building premises shall no longer exceed 50 percent of the capital stock, surplus and undivided profits of the bank, or 100 percent of the capital stock, whichever is greater.
(Code 1950, § 6-49; 1966, c. 584; 1968, c. 61.)
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